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Here are the questions we sought to answer by analyzing anonymized subscription data for transactions across various Asian countries (excluding broader “APAC” regions like Australia, New Zealand, and Indonesia): How do customers in Asia’s growing markets prefer to manage their SaaS subscriptions?
When SaaStr Fund made the first investment in RevenueCat back in 2018, nobody could have predicted that this “simple API for managing in-app subscriptions” would become the infrastructure powering 33% of all mobile subscription apps and reach a $500M valuation in 2025. No one else was even building anything like this.
We go to market with our platform in three ways: Core, Pro and FinTech products. ” Market Opportunity From the S-1: “In the United States and Canada alone, end customers spend approximately $1.5 Today, we serve trades and markets that represent approximately $650 billion of the total $1.5
To calculate implied ARR I take the subscription revenue in a quarter and multiply it by 4. Not every company reports subscription revenue, so they’ve been left out of the analysis (or I’ve estimated their % subscription revenue). What I’ve shown below is the market-adjusted stock price reaction.
Rise to the next level of recurring revenue. Discover how recurringpayments are reshaping industries beyond simple subscriptions, driving a $1.5 trillion market. Learn the crucial strategies for building scalable, secure, and seamless recurringpayment infrastructure to boost customer retention and fuel growth.
Don’t create your own entity structure around the world, but be treated as a non-local business in the majority of the markets in which you sell. Even if you choose to create your own entity structure, you will need to work with many PSPs (or legal entities) to be treated as a local business in each market.
A lot of you reading SaaStr are probably more B2B SaaS oriented and may not be paying attention to the consumer market, but it’s already massive and is continuing to grow quickly. In this week’s Workshop Wednesday, RevenueCat CEO Jacob Eiting and Growth Advocate David Barnard share their annual State of Subscription Apps report with us.
Fresh data from Ramp’s AI Index suggests that the meteoric rise in business AI spending might be showing signs of deceleration, raising questions about whether we’re witnessing market maturation or beginning to hit a potential adoption ceiling: The numbers tell a nuanced story. While overall AI penetration among U.S.
By BluLogix Team Navigating Complex Pricing Models in the Subscription Economy Introduction In the subscription economy, Managed Service Providers (MSPs) must adapt to increasingly complex pricing models to meet the evolving needs of their customers. Gone are the days of simple, one-size-fits-all pricing.
Uncover the secrets driving the future of the Subscription Economy. Zuora and BCG’s latest report uncovers how hybrid pricing models—combining subscription and consumption (usage)—are fueling faster growth, especially in AI-driven sectors. Don’t miss out on the key trends shaping tomorrow’s biggest growth opportunities.
By Inga Broerman Preparing for Regulatory Changes in Subscription Management The subscription economy is thriving, with businesses worldwide adopting models that offer flexibility, scalability, and recurring revenue streams. However, as the industry grows, so does regulatory scrutiny.
18B market cap, so ~6x ARR Net net it’s a story of new customer growth of 7% combined with slowing NRR of 106%. The Gross Margin Ceiling Discovery The Numbers : Non-GAAP subscription gross margin plateaued at 83.9% That math combines roughly to 12% growth. 5 Interesting Learnings: The Core 5: Revenue & Growth Metrics 1.
ICONIQ’s latest report, surveying 205 GTM executives in April 2025 , reveals a market splitting in two: AI-forward companies pulling dramatically ahead while traditional SaaS companies struggle with flat growth, longer sales cycles, and declining conversion rates. vs $8.7K), and dramatically leaner operations.
In either case, you’ll likely hit up Google for an influencer marketing tool. Choosing the right platform for your influencer marketing efforts can be overwhelming—not because of a lack of options, but because there are so many to choose from. But with so many options available, how do you choose?
Usage by individuals then drives companies to purchase subscriptions or licenses. An approach to tackling the interdependent decisions of which problems to solve, to what degree, and for whom in a competitive market. A product-led company is one that grows through user adoption and word-of-mouth recommendation.
revenue share earns you $400,000 —on top of your subscription revenue. That’s the beauty of embedded payments: your customers gain convenience and control, while you gain a passive, scalable revenue stream. Payments create a parallel revenue stream without causing sticker shock. Valued at $261.1
By Inga Broerman How Usage-Based Pricing is Transforming Subscription Billing The subscription economy is undergoing a transformation, driven by the rising popularity of usage-based pricing. The days of flat-rate subscriptions being the default option are gone. Your ERP cannot bill usage subscriptions.
Here’s the best-practice way to calculate it: Start with your Beginning ARR (Annual Recurring Revenue) : This is the ARR from your existing customers at the start of the period you’re measuring. Subtract Churned ARR : This is the revenue lost from customers who canceled their subscriptions during the period.
By Inga Broerman How Industry Consolidation is Reshaping Subscription Billing The subscription economy is on a path of rapid growth and transformation, projected to reach a $3 trillion valuation in 2024. This trend creates formidable competitors with comprehensive offerings that can dominate markets.
The concept of unearned revenue can easily trip up SaaS companies that offer subscription services and products on a recurring basis. Unlike when selling ordinary products, you cannot recognize the revenue earned from a subscription all at once. In the case of SaaS subscriptions, this could take several months—or even years.
Takeaway : Sometimes the fastest path to market dominance is making your potential competitors into distribution partners. Learning #4: Israeli Tech Talent + US Market Focus = Winning Formula Melio’s 600+ employee split (200 in NYC, 400 in Tel Aviv) optimized for both market proximity and engineering talent density.
Having joined Checkr from Google in 2022, Lindsay shared valuable insights about identifying and executing on major opportunities for improvement within an already mature go-to-market organization. Checkr’s go-to-market strategy was already well-established when Lindsay joined in 2022.
It’s the emergence of a new category that’s attracting billions in investment and fundamentally disrupting the $500B+ software development market. This dual-market approach massively expanded the addressable market. Production bugs or security issues could damage the platform’s reputation.
By Inga Broerman The 2025 Blueprint for Scalable Growth in the Subscription Economy The subscription economy is entering a pivotal year. To succeed, subscription-based organizations must embrace smarter, more integrated approaches to billing, management, and strategy.
ARR with 50% growth at that scale 500+ customers consuming at over $1 million annual revenue run-rate 80%+ subscription gross margins (infrastructure companies dream of margins like this) Free cash flow positive for the first time 140% Net Revenue Retention (top decile performance) Growing Twice as Fast As Comps When you’re doing $3.7B
And now, engineering and distribution (go-to-market) constraints are greatly reduced with AI. Whether it’s automated content generation (ie marketing content), AI SDRs and AEs, data enrichment funnels, etc it’s now possible for companies to scale their brand / distribution incredibly quickly. Someone can always catch you.
Now, the first AI Account Executives and BDR platforms are hitting the market. Companies are routinely achieving 60%+ deflection rates – meaning AI handles 6 out of 10 (or more) support tickets before a human agent ever gets involved. The question isn’t whether AI will impact sales.
Operating a business entails a number of processes like managing products and payments, invoices, customer engagement, revenue, unpaid invoices and much more. That is why most modern SaaS and subscription-based businesses have transitioned to using a good billing software, reducing their workload by a great deal.
Cyvatar is a technology-enabled cyber security as a service (CSaaS) provider disrupting a $150 billion industry by introducing and delivering smarter, measurable managed securitysubscriptions to help you achieve compliance and security faster and more efficiently.
Even if a lot of the revenue isn’t truly recurring SaaS revenue. “We define ARR as annualized invoiced amounts per solution sku from subscription licenses and maintenance obligations assuming no increases or reductions in their subscriptions.” ” #5. But interesting, the U.S.
Here are some key considerations: PCI Level 1 Compliance: Ensure your integration meets the Payment Card Industry Data Security Standard (PCI-DSS). PCI Level 1 is the most secure on the market. Can integrated payments support subscription billing? Maintenance Costs: Ongoing costs for updates and support.
Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4). Even a DCF is riddled with long term assumptions. Overall Stats: Overall Median: 5.5x
In Figma, designers work alongside developers, product managers (“PMs”), researchers, marketers, writers, and other non-designers who, in the three months ended March 31, 2025, made up two-thirds of our more than 13 million monthly active users. Access to Figma is sold as an annual or monthly subscription, per seat.
Royalty-free A "royalty" is a payment made every time a piece of content is used. Royalty-free music means you pay once upfront for rights to use the music, rather than making recurringpayments (royalties) each time you use the track. Annual subscriptions offer significant savings.
You might be surprised to know that SaaS companies can learn a lot from their consumer subscription counterparts. 4: High-end sales teams Increasingly, SaaS organizations leverage inside sales teams, since selling subscriptions is easier and less of a commitment than selling enterprise software. 3: Make onboarding seamless.
One invoice. I would pay each product provider in their own token: one for storage, compute, caching/CDN, email subscription management, etc. Perhaps this dynamic drives consolidation in the market, paralleling the web2 infrastructure hypermarts of AWS, GCP, and Azure. I paid for them each in US dollars every month.
Under his leadership, the company has developed innovative AI-powered solutions for restaurant websites, online ordering, CRM, and marketing automation. As the technology continues to evolve, companies must stay agile and responsive to changing market needs while ensuring their AI implementations deliver real value to their customers.
Or at least, they don’t hold if you’re trying to build a breakout company… So many of these markets are still wide open. In a greenfield market, the first company to get real usage becomes the category. And in a greenfield market, speed matters more than polish. And they’re HUGE. Nobody owns them yet.
Research shows that 64% of small businesses use accounting software and the market for accounting software solutions is projected to be worth $4.3billion by 2023. There are many good products in the market that provide you with all of the features you need, but we will only focus on Quicken software and Intuit’s QuickBooks Online.
Subscribe now The Fed Bomb The markets were enjoying a nice little Santa Claus rally until this Wednesday when the Fed decided to shake things up! Why was there such a sharp market reaction this week? Market valuations were also starting to get stretched, so the commentary from the Fed around rates certainly spooked the markets.
They build organically, but also acquired their way into new products and markets. With more recent cloud software companies, there was a lot of organic expansion - ie expanding into new markets and capabilities through internal product development. A while back companies companies built platforms through M&A. Top 5 Median: 18.4x
In this episode of Growth Stage, we interview gaming D2C and creator marketing expert Justin Sacks of Nexus about his thoughts on: What winning strategies AAA and AA publishers use for D2C in mobile. Justin Sacks (02:08) Taking me back, I think I got a summer job in high school so that I could pay for my own WoW subscription.
By Inga Broerman Overcoming Revenue Leakage with Smarter Billing Practices Revenue leakage is one of the most insidious challenges subscription-based businesses face. In todays competitive subscription economy, addressing revenue leakage isnt optionalits critical for sustaining profitability and building trust with customers.
Subscription backlog up 19.7%, to $25 Billion (!). 27%+ Free Cash Flow margins, 26% non-GAAP profit margins, and $8 Billion in the bank, so generating massive cash $57 Billion market cap, so trading at 6x+ ARR Workday is 20 years old this year. So a huge amount of revenue booked but still to come.
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