Tom Tunguz

NOVEMBER 12, 2023

I realized It has been a decade since I’ve updated revenue-per-employee metrics. Revenue per employee spans approximately $200k-$900k. In 2013, the average revenue per employee of these companies totaled $200k. In 2023, these companies added about $37k in revenue per employee, but the range spans $18-71k.

Software Review 331

Software Review Trends Revenue Software 331

SaaStr

DECEMBER 4, 2022

It created a lot of discussions and was more controversial then — that NPS was a great core metric. Back then, I wrote that when I was a SaaS founder, I thought Net Promoter Score (“NPS”) was a somewhat dumb, Big Company metric. NPS isn’t tied to upsells, churn, or revenue. NPS is A Great Core Metric.

Metrics 280

Metrics Churn Engineering Innovation 280

SaaStr

FEBRUARY 14, 2023

The current public market environment might look like a great SaaS crash for many people. In this week’s Workshop Wednesday , Salesforce Ventures Investor, Jessica Bartos, shares the 5 metrics every SaaS company should care about in any market environment, especially the one we’re currently in. In reality, it’s not a crash.

Metrics 200

Metrics SaaS Marketing SMB 200

Sales Hacker

JANUARY 30, 2024

Only one month into 2024, we’re already seeing a significant shift in the marketing metrics world. As we step into this new era, we re-evaluate what truly matters in the marketing landscape. Kevin White (Head of Marketing) of Common Room explains why replacing MQL with pipeline is the way to go.

Metrics 90

Metrics Marketing Technical Review Sales Funnel 90

Clouded Judgement

MARCH 22, 2024

Subscribe now ARR (Annual Recurring Revenue) vs ERR (Experimental Runrate Revenue) ARR (Annual Recurring Revenue) is one of the most popular SaaS (Non-GAAP) metrics. However, it’s also one of the most loosely used metrics, and is frequently misused. Follow along to stay up to date!

AI 183

AI Revenue Cloud Technical Advisors 183

SaaStr

DECEMBER 3, 2023

So over the past decade-and-a-half we’ve come up with a lot of yardsticks, metrics and rules for SaaS companies. E.g.,: CAC of < 12 months is Good-to-Great Paying sales reps 25%-30% of what they close is Good A burn ratio of 1 or less is Good These metrics do sort of work, if you have some capital to spend (i.e., It depends.

SaaS Payments 196

SaaS Payments Metrics Payments SMB 196

SaaStr

JUNE 22, 2021

At his first board meeting, he kept talking over the VP of Marketing. So I thought it might be helpful to brush off the topic of alignment between Sales and Marketing by updating a classic post on the topic. The original version here on Lattice Engines’ Sales and Marketing Hub. If the metrics make no sense, pass.

Sales Recruiting 300

Sales Recruiting Scale Sales Hiring Revenue 300

Subscription Flow

APRIL 18, 2024

How do you keep increasing your revenue in a marketplace that has reached its point of saturation? It is measured using various metrics. 3. Stability and Predictability in Revenue Streams In any business, consistency really is key. The sections are as follows: 1. Understanding the importance of engaging subscribers 2.

Engagement 94

Engagement Customer Lifetime Value Revenue Payment Features 94

SaaStr

SEPTEMBER 25, 2023

Theoretically, the relationship between sales and marketing should be easy –– after all, these teams are responsible for pulling in more business and increasing revenue. But the thing that we really need to ensure is that our sales and marketing teams are aligned on the core metrics.” But there is hope.

Enterprise 250

Enterprise Marketing Sales SaaS 250

User Pilot

FEBRUARY 26, 2024

Digital product metrics reveal how customers interact with your product. They paint a picture of your product’s impact and the success of your marketing strategy. However, not all metrics are created equal. In this article, we hone in on the best metrics for product teams looking to drive product growth.

Metrics 100

Metrics Customer Lifetime Value Scale SaaS 100

Predictable Revenue

JANUARY 23, 2023

Using pirate metrics to know when you’ve reached product-market-fit. These five key metrics can help you determine where you are on your journey and how to course correct if needed. The post What Does Product-Market Fit Feel Like? appeared first on Predictable Revenue.

Product Marketing 239

Product Marketing Marketing Metrics Revenue 239

SaaStr

NOVEMBER 15, 2022

Metrics are the key to evaluating success and setting goals, but not every SaaS business should orient itself around the same one-size-fits-all numbers. This flexible mindset creates just the right conditions for embracing evolving business models and new metrics. The Metric Monolith: The Rise and Fall. Gross Margin = 70% +.

Metrics 204

Metrics Machine Learning Artificial Intelligence Technical Review 204

Payrix

APRIL 17, 2024

Payrix acts as an extension of the platform, providing powerful payments technology that delivers the exact look and feel that platforms want, and comes with white glove service from experts who help drive merchant activation and revenue. Knowing your objectives upfront will help you customize your marketing plan and measure your results.

Payments 130

Payments Embedded Payments Merchant Services SaaS Payments 130

SaaStr

AUGUST 7, 2023

Learn about the most important SaaS metrics for founders in 2023 with the CEOs of the most metric-oriented company, monday.com, and the founder of SaaStr. For a quick recap on SaaS metrics: What is ARR in SaaS? ARR stands for Annualized Recurring Revenue, although its real-world definition has evolved over time.

Metrics 182

Metrics SaaS Sales Hiring Finance 182

Tom Tunguz

JULY 4, 2023

In August of last year, public markets switched from valuing SaaS companies primarily on growth to primarily on profitability. I wondered if the public markets have begun to change the way they value these businesses. Above is a chart that shows the correlation to forward multiple for each of five metrics broken down by quartile.

Software 262

Software Marketing AI Metrics 262

Intercom, Inc.

NOVEMBER 14, 2018

If you’re forecasting short on your global revenue target, do you know how you’ll make up the difference? Sales KPIs versus sales metrics: Is there a difference? Some might argue that there are fine-grained distinctions to be made between KPIs and metrics. New logo revenue. Net expansion revenue. Expansion dollars.

Sales Hiring 188

Sales Hiring Metrics Revenue Sales 188

SaaStr

DECEMBER 4, 2023

With the turbulence in the market in 2023, sales cycles have only been getting longer and a lot more complicated. At this year’s SaaStr Annual , CEO and co-founder of Capchase Miguel Fernandez and Director of Marketing Rose Johnson share five tips for getting sales right in any market. to find out what was going on.

SaaS Payments 207

SaaS Payments Payment Services Payments Payment Features 207

Tom Tunguz

AUGUST 20, 2020

introduced a gem of a new metric : month zero cash-on-cash payback. It’s not a metric one sees very often in pitch decks. But it’s another metric to add to the toolkit. Where does ZCP fit into the panoply of metrics for SaaS companies? It’s a cash accounting metric, not an accrual accounting metric.

Metrics 347

Metrics Payments Banking Sales 347

FastSpring

APRIL 18, 2024

Some businesses outgrow their home countries after a seed or startup period that saw initial success domestically, while some businesses founded with niche markets or in smaller countries may need international sales as table stakes on day one. Why it’s so important to optimize pricing for local markets.

Payment Methods 78

Payment Methods Payments SaaS Payments Merchant Services 78

Subscription Flow

DECEMBER 5, 2023

Maximizing recurring revenue, increasing sales, retaining customers , and achieving all such business targets is the dream of every subscription business retailer. There are certain subscription billing performance metrics that if you track will help you a lot in achieving certain specific business targets. Haven’t you found out yet?

Payment Features 52

Payment Features Subscription Metrics Revenue 52

User Pilot

JUNE 26, 2023

Want to track the different types of product metrics to get product growth insights ? Product metrics are critical for product growth managers to develop the right product strategies and drive continuous value for customers. However, it isn’t easy to choose the right product metrics from the many SaaS metrics available.

Metrics 88

Metrics Customer Lifetime Value SaaS Acquisition 88

User Pilot

MARCH 31, 2023

Analytics vs metrics – how do they differ from each other? Though both are important, analytics and metrics have distinct meanings and purposes in your data analytics process. In this article, we will go through analytics and metrics, their examples, and how you can analyze metrics to drive growth for your SaaS business.

Metrics 97

Metrics Customer Lifetime Value Data Analysis Engagement 97

Tom Tunguz

SEPTEMBER 19, 2021

Revenue, $M. Revenue Growth. -. GitLab is the third fastest growing software company at IPO, registering 87% revenue growth in 2020, while charting 88% gross margins. Assuming the company grows at similar levels to the first half of 2021, the model suggests the company should expect a market cap in the $15-17B range.

Metrics 315

Metrics Outsourced Development Scale Cloud 315

SaaStr

JULY 19, 2023

Markets have been all over the place, layoffs occurred, and investors weren’t funding as much as usual. In a special workshop, Sam shares advice on how to spot bottlenecks, reallocate the right resources, and grow revenue in 2023. While lost deals have an impact, the real revenue bottleneck may lay elsewhere in the buyer journey.

Revenue 203

Revenue Acquisition Technical Review Systems Review 203

Predictable Revenue

DECEMBER 16, 2021

The post How Technical Credibility & Metrics Will Help You Close More Deals appeared first on Predictable Revenue. As a sales rep it's critical that you're credible about how technical things interact so that you can help customers get to their intended outcome.

Metrics 232

Metrics Revenue Sales Strategy 232

Tom Tunguz

JUNE 22, 2022

For web3 startups to thrive, their marketing teams will need to spend marketing dollars to acquire users efficiently. Existing marketing technology won’t work for web3. Web2 marketing employs the cookie as the primary identifier of a person, not a wallet. There’s no bridge between web2 & web3 data, yet.

Marketing 355

Marketing Blockchain Advertising Government 355

ChurnZero

JULY 8, 2022

Cut to 2022, and the idea that a SaaS company could secure venture funding without investors digging deep into retention metrics seems comical, if not reckless. Net revenue retention (NRR) is taking center stage as the qualifying metric for determining the health of a SaaS business. Net revenue retention defined.

Technical Review 98

Technical Review Software Review Retention Metrics 98

SaaStr

NOVEMBER 30, 2023

A great product, while necessary, isn’t sufficient to build a market leader and eventually a public company. Companies that win a market are just as good at Go-to-Market as they are at building great products. But to develop a GTM strategy, you must have Product Market Fit. Without it, you don’t have a business.

Scale 223

Scale Sales Hiring Scaling Outsourced Development 223

User Pilot

MAY 17, 2021

Are you tracking the right Product Marketing KPIs? With so many product growth insights available to every product marketer, it’s sometimes hard to understand which metrics are relevant and which you should be tracking to measure the success of your product marketing. What is Product Marketing?

Product Marketing 98

Product Marketing Metrics Customer Lifetime Value Marketing 98

Tom Tunguz

SEPTEMBER 1, 2021

Revenue, $M. Revenue Growth. -. Amplitude’s revenue growth rate is in the top quartile for modern software companies at 49%. Both the ACV and large customer contribution are increasing with time suggesting the company continues to focus up-market. Gross Margin. Sales Efficiency. -. Net Income Margin. Customer Count.

Metrics 294

Metrics Benchmarks PayPal Enterprise 294

SaaStr

APRIL 16, 2024

You probably have fallen out of product-market fit, partially or entirely. More on that here : When You Fall Out of Product-Market Fit (Updated) Second, focus on the customers you do have and making them super happy. Third, focus on metrics besides revenue that matter, and that you can grow right now. Especially usage.

Startup 243

Startup B2B Metrics Product Marketing 243

SaaStr

FEBRUARY 27, 2024

Go-to-market (GTM) design and efficiency are sometimes overlooked, but they’re a critical driver of any SaaS business. Rajeev Dham and Karan Singh, Partners at Sapphire Ventures, and Jane Lee, Vice President at Sapphire walk us through how to double your “Magic Number,” a shorthand for your sales and marketing efficiency.

VP of Engineering 212

VP of Engineering Scale Marketing Benchmarks 212

SaaStr

MARCH 1, 2021

Q: Can SaaS free pilots and trials periods count towards gross revenue then deducted as a marketing expense? First, if you really want to do this — i.e., net a pilot against marketing expense — then you do have to still charge for it. If it’s truly free — it isn’t revenue. Second, it’s misleading.

Revenue 263

Revenue Metrics Scaling Software 263

SaaStr

OCTOBER 5, 2022

In a volatile economic climate and market, founders must employ smart growth strategies while focusing on efficiency. Confluent’s President of Field Operations, Erica Schultz, explores different tactics businesses can employ to scale revenue and increase efficiency in the current macro environment.

VP of Engineering 187

VP of Engineering Scale Scaling Sales Hiring 187