SaaStr

NOVEMBER 1, 2023

Well, fast forward to today and it’s truly an SMB powerhouse. How is SMB SaaS doing today? are realtively low, as a huge amount of their payments revenue goes out to the payment processors. 111% NRR from SMBs. . #5. 15% Customer Growth Leads to 48% Revenue Growth Always helpful to me to see this math broken out.

Payment Services 288

Payment Services Payments SaaS Payments Payment Solutions 288

SaaStr

JULY 27, 2022

If a SaaS business hopes to win over the SMB market successfully, it will need a precise GTM approach. Founded in 2015, PayFit is a software company that empowers entrepreneurs and SMBs to digitize payroll and HR processes. Boterri’s company Accel invested in PayFit in 2017 and again in 2021.

SMB 189

SMB Sales Hiring Scale B2C 189

SaaStr

SEPTEMBER 2, 2023

The higher a company’s retention, the easier it is to grow, as the company doesn’t have to replace as much lost revenue. This relationship is a rare example of increasing returns from investment in upsells and cross-sells. This is a rare example of increasing returns from investment in upsells and cross-sells.

Startup 251

Startup SaaS SMB Banking 251

Sales Hacker

AUGUST 29, 2023

Previously, he served as the VP of Sales & Services at Mixpanel, where he ran the more than 100-person global revenue team. And…monthly bonus podcast episodes dropping the first Thursday of every month The post GTM 58: How Stripe SuperCharged their SMB Team with Meka Asonye appeared first on GTMnow.

SMB 73

SMB Scale Compensation Finance 73

SaaStr

DECEMBER 3, 2023

can invest in marketing that takes a little while to pay off). Non-Recurring Revenue Doesn’t Count, At Least Not as Much. If your revenue from any stream can go down in a given month or quarter, it’s not recurring. Pass-Through Revenue Simply Doesn’t Count. Is it OK to recognize pass through revenue as “revenue”?

SaaS Payments 204

SaaS Payments Metrics Payments SMB 204

SaaStr

JANUARY 5, 2024

12,000 customers, very high net review retention (NRR) even with SMB customers. Why is Jason Worried for The First Time About SaaS: We are trading at 6x revenues in the public markets. Don’t do the investment. If you do not know what to do, just invest more in your best. Growing 40-50% cashflow neutral.

SMB 299

SMB SaaS AI Software Review 299

SaaStr

OCTOBER 25, 2023

Leveling Up PLG to Accelerate SMB Customers, Including More Attention to Onboarding I love seeing this, it can seem hard to invest heavily in small customers, but if you don’t especially invest in onboarding, that’s a big shame. Soon, They Will Be The Majority of Revenue. But good to learn from. $50k

SMB 248

SMB AI Onboarding Cloud 248

SaaStr

MARCH 22, 2024

The path to Cheif Revenue Officer (CRO) is different for many people. Tracy Young , CEO and co-founder at TigerEye, sits down with three CROs to talk about how they navigated the journey to revenue leader. After switching to SaaS, she started as an SMB sales leader with no prior management or SMB sales experience.

Scale 238

Scale Underperforming Technical Team SMB Finance 238

SaaStr

JANUARY 24, 2024

But, it hasn’t left behind its SMB and MidMarket roots, which together are still as large a revenue segment as Enterprise. And 20% or so of its revenue importantly comes from agencies, i.e. partners. Are you investing enough there? #3. Those 3% of customers make up about 40% of total revenues today.

Social Media 218

Social Media SMB Enterprise Scaling 218

SaaStr

JUNE 7, 2021

If your SMB product requires or has a salesperson involved in closing, that’s a clear sign you also want a human being involved in making sure that customer is a success post-sale, too. Just assign a certain amount of ARR per each SMB customer success manager. Support has to handle a lot of routine SMB issues anyways.

Customer Success 322

Customer Success Scale SMB Sales 322

SaaStr

JULY 20, 2022

While these aren’t great metrics if Weave was enterprise, they are still solid for SMBs. Many SMB SaaS companies struggle to hit 100% NRR and 80% GRR. A fairly standard SMB price point. 907 employees at IPO, so about $150,000 revenue per employee. So why the terrible revenue multiple?

SaaS Payments 239

SaaS Payments Scale Payment Methods Payments 239

SaaStr

SEPTEMBER 17, 2023

LIVE from Annual Stage A Masters: How Revenue Leaders at Box, Calendly, and Lattice Created Sales Acceleration Moments The post Top SaaStr Content for the Week: Craft Ventures’ Founder & General Partner, QED’s Partner, Y Combinator’s Managing Director and lots more! The Next Best in About 5 Years.

Scale 216

Scale Management SMB AI 216

SaaStr

DECEMBER 26, 2020

And produce a lot less revenue per interaction. That often starts to not feel worth it after just a few million in revenue. Every call takes the same amount of time, but the small ones produce so much less revenue. This makes the SMB leads worth a lot more than just their direct lifetime value. Probably more.

SMB 347

SMB Sales Hiring Marketing Enterprise 347

Tom Tunguz

AUGUST 2, 2016

Channel distribution represents one of the biggest and most important changes in customers acquisition for SMB SaaS startups in quite a while. IBM, Intel, Cisco and their kin generate more than 80% of their revenues through a universe of resellers and distributors. It’s the most successful SMB SaaS acquisition channel ever built.

Outsourcing Services 111

Outsourcing Services SMB Acquisition Scale 111

SaaStr

NOVEMBER 15, 2022

It does less in SMB. Vista’s investments are older, established SaaS companies with brands. Revenues are down in some categories, and not others, Growth is probably 20% more challenging than in the best of times. in ARR, so it’s second only to Salesforce in SaaS. And they spans dozens of leading vendors in SaaS.

Cybersecurity 305

Cybersecurity SMB Interviewing Enterprise 305

SaaStr

FEBRUARY 24, 2021

I would have expected lower than 100% net revenue retention from Upwork, given that much of the spend can be episodic. Net net, even from SMBs, Upwork manages 100% NRR, just as Shopify and Hubspot do from SMBs. 80% SMB, 20% Enterprise. 20% of clients represent 80% of the revenue. So don’t settle for less.

Marketplace as a Service 263

Marketplace as a Service SMB Cloud Enterprise 263

SaaStr

DECEMBER 8, 2022

I strongly believe in investing as much in Customer Success as possible. 50% or so of HubSpot’s revenue is international. Invest in that ecosystem. Your revenue and ACV is just a small part of it. The average SMB now uses almost 300 (!) Secrets to SMB at Scale with HubSpot and SaaStr's CEOs [link].

Scale 236

Scale SMB Scaling Customer Success 236

SaaStr

OCTOBER 27, 2023

Jason re-takes the stage in Part 2 of the series to answer questions about the right time is to invest in a new product line, building vertical vs. horizontal, multiples in 2024, and much more. With two caveats… They have to close a significant amount of revenue themselves. Q: When is the Right Time to Invest in a New Product?

Sales Hiring 242

Sales Hiring Scale Venture Capital Generative AI 242

Andreessen Horowitz

APRIL 23, 2024

So unless there’s some really obvious or transformative thing to do in your business today, it’s worth waiting a little bit to invest heavily in that. We’re experimenting with it, but we haven’t made a massive investment. Both of you sell into SMBs, which is a notoriously difficult segment.

Payments 108

Payments Forecasting Payment Services Payment Solutions 108

SaaStr

OCTOBER 29, 2020

And expansion revenue is higher than pre-Covid. So if you sell to SMBs, or a mix of SMBs and enterprise like Zendesk does (with 160,000 total customers), well … enough with the excuses on churn. 112% Net Revenue Retention. Sometimes, you just stay a steady mix of Enterprise and SMB. No excuses.

SMB 237

SMB Enterprise Retention Churn 237

SaaStr

JANUARY 12, 2021

Xero is a very interesting SaaS case study with (x) the majority of its revenue outside the U.S., Here are a few: All the way until $600m+ ARR, the majority of Xero’s new bookings and revenue still came from Australia and New Zealand! Xero’s SMB churn isn’t zero. So nail a niche!! isn’t everything.

Customer Lifetime Value 221

Customer Lifetime Value SMB Churn Scale 221

SaaStr

FEBRUARY 8, 2022

Knowing which metrics matter and how to analyze them to increase your revenue and hit organizational sales goals is essential. . Waze sales executives Fernando Belfort , Head of SMB Sales, and Kendra Wrightson , Head of Sales Enablement, discuss optimizing sales processes for four essential data points: value, variety, volume, and velocity.

Scale 228

Scale Sales Hiring Compensation Sales 228

SaaStr

FEBRUARY 13, 2021

Its definitely at least a Cloud infrastructure and applications company for SMBs: And its also a great case study of learning how to sell and market to SMBs at scale. At $4B of revenue of scale. in free-cash flow from its $4B in revenue. SMB growth in Cloud and SaaS is still going strong! GoDaddy generates $1.1B

SMB 298

SMB Cloud Scaling Investment 298

Clouded Judgement

APRIL 11, 2024

It looks at the YoY dollar change in quarterly revenue from the hyperscalers (just looking at Azure / AWS because the data goes back further) going back a few years. Q4 Revenue Relative to Consensus Estimates Now let’s dive in to the financial results of Q4 starting with revenue.

Cloud 177

Cloud Software Azure AWS 177

SaaStr

OCTOBER 5, 2022

Sales was a long term investing, starting Free and limited. Solution Partners, i.e. the Channel, drive 43% of Revenue. And a lot of thing they are really something more enterprise than SMB. 50% of revenue from new customers, 50% from installed base. in ARR growing 30% — not bad.

Scale 270

Scale SMB Scaling B2B 270

SaaStr

APRIL 4, 2023

This means you can raise prices, add modules, and expand, increasing the average revenue per customer account (ARPA). Not only did they bring in and convert more leads, but they also moved part of the customer base upmarket, increasing LTV and revenue. They had SMB positioning with an unfavorable LTV to CAC ratio.

Scale 228

Scale Strategy Scaling Outbound Sales Team 228

SaaStr

OCTOBER 30, 2021

Their CEO will join us at SaaSr Scale 2021 on December 15 to talk about using data to get to 10,000 SMB customers! I asked Aasif Osmany to share his learnings as a top-performing SMB VP of Sales, below. A mentor of mine suggested that I reframe my search to seek out companies that I would invest in, instead of the other way around.

Scale 260

Scale Sales Hiring Sales SMB 260

SaaStr

DECEMBER 8, 2020

Today, just 2 years after that, Hubspot in a very similar space (just more SMB) and with very similar revenue, is worth $18B. First product doesn’t work, no revenue for 3 years. 2013: first investment First product doesn’t work, no revenue for 3 years. 2013: first investment. That’s 18x.

SaaS 202

SaaS SMB Cloud Revenue 202

SaaStr

OCTOBER 11, 2023

Monday has gone from $7m in 2017 to over $700m in revenue today, showcasing the sheer power of compounding revenue. You don’t want to overwhelm SMB customers, and Monday made this a focus from day one. Big Brain was an internal tool to track revenue, marketing expenses, and usage of the product. How do you increase NRR?

Scale 164

Scale Sales Hiring Scaling Banking 164

SaaStr

MAY 4, 2022

For SMB, it could be $20m-$30m in ARR. It’s what I’ve found in particular across my 30+ venture investments. Each did 40% of its revenue. Freshworks is another interesting SMB example of going multi-product early. For enterprise, this could be $300m-500m in ARR. — Jason BeKind Lemkin #????????????

Scale 251

Scale SaaS SMB Scaling 251

SaaStr

FEBRUARY 9, 2024

The first role that comes to mind is driving revenue and it’s probably within sales. They had been building toward an SMB audience, so hiring 50 people in sales against a product that wasn’t ready for a specific audience would’ve been a mistake. So, you might hire someone for inbound or outbound sales to meet that growth.

Scale 260

Scale Sales Hiring Sales Marketing 260

SaaStr

FEBRUARY 14, 2023

In today’s market, you’ll need to convince investors that you’re a worthwhile investment. Net Dollar Retention Shows SaaS’s Best Qualities NDR encapsulates SaaS revenues’ best qualities in one metric: the subscription-based model. It captures the predictability of SaaS revenue and built-in growth. Why does the rule of 40 matter?

Metrics 210

Metrics Marketing SaaS SMB 210

SaaStr

DECEMBER 27, 2020

Those of us who’ve been around a while think of New Relic as a freemium and almost SMB tool, but today 77% of their revenue comes from accounts greater than $100k. New Relic’s net negative churn / net dollar retention has dropped to 98% in the last quarter, despite a record 77% of revenue being from the enterprise.

Scale 300

Scale Outsourced Development SMB Cloud 300

SaaStr

DECEMBER 29, 2019

it wasn’t until later on in 2007 that we had enough revenue to create a large enough group of customers to go on a 10 Year Journey with. Customers invest in not just products, but relationships. If you compare them over 10 year lifetimes, you’ll see you should probably invest much more in the bigger customers.

Scale 348

Scale Churn Construction SMB 348

Clouded Judgement

DECEMBER 21, 2023

Q3 Revenue Relative to Consensus Estimates Now let’s dive in to the financial results of Q3 starting with revenue. Beating consensus revenue estimates is the first aspect of a successful quarter. The formula to calculate this is: (Q3 ’23 revenue) / (Q3 ’22 revenue) - 1.

Cloud 177

Cloud Software Benchmarks Retention 177

SaaStr

MARCH 10, 2022

Investing in a Product-Led Model to Drive Exponential Sustainable Growth. We just did a deep dive on how DigitalOcean is growing an impressive 37% at $500,000,000 in ARR , and staying very SMB with 600,000+ customers. Specifically, Anu will discuss : Enacting Transformational Change by Building a Movement. Building a Community.

Scale 202

Scale SMB Scaling Startup 202

Sales Hacker

SEPTEMBER 16, 2021

To help demystify this sales POC term and provide context for all go-to-market professionals, let’s expand on each of these terms and identify five things the pre-sales professional can do to drive more revenue within the middle of the funnel. Sales Profile: SMB to Commercial. Sales Profile: SMB to Commercial. Deal Size: Low.

Revenue 73

Revenue Sales SMB Engineering 73