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. Without an autonomous-first approach, you will miss out on many SMBs.

SMB 176

SMB Sales Hiring Scale B2C 176

SaaStr

OCTOBER 5, 2023

But HubSpot is a platform today, from Marketing to Sales to Service to CMS — a true Customer Platform: Its first product is the most mature — its Marketing Hub is growing 20%, vs CRM at 30% and Service at 40%. It’s now adding more new bookings than HubSpot Marketing Hub. of the $2B total ARR for HubSpot.

Marketing 200

Marketing SMB Scale Revenue 200

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. For SaaS businesses that target smaller SMB customer segments, gross retention is typically in the mid to low 80’s with net expansion in the ~105% range.

AI 183

AI Revenue Cloud Technical Advisors 183

SaaStr

DECEMBER 1, 2021

Software is becoming a reflection of our everyday lives, with many of the highest-traffic categories in video conferencing, cryptocurrency mining, marketing automation, and project management software. So video conferencing, marketing automation, project management –– this is the zeitgeist of our culture, reflected in software.”.

Software Review 222

Software Review SMB Enterprise Software 222

SaaStr

DECEMBER 26, 2020

Even once you hit just $2m-$3m ARR — fairly early — the trade-offs start to become clear for startups with customers both Smaller and Larger: Small customers consume just as many sales, success, and marketing resources. And produce a lot less revenue per interaction. Probably more. ” Which is true.

SMB 335

SMB Sales Hiring Marketing Enterprise 335

SaaStr

JANUARY 24, 2024

What should you look for in an Enterprise rep vs. a Mid-Market rep? Solving High Volume, Low Conversion at Lattice Dini Mehta joined Lattice at $3M in revenue when it had just 10 people in seat for Go-To-Market and 7 salespeople. From a product standpoint, you might think you have product market fit.

Scale 209

Scale Sales Hiring Scaling Revenue 209

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 271

Payment Services Payments SaaS Payments Payment Solutions 271

SaaStr

MAY 18, 2021

But one thing that is almost always true, is you get more renewals, more upsells, and more net revenue retention from your largest customers. Squarespace is almost all not just SMB, but self-service. Their new revenue retention is about 85%. As a best-of-breed player, its net revenue retention is about 100%. Segment it.

Merchant Services 262

Merchant Services Revenue SMB SaaS 262

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

Tom Tunguz

AUGUST 26, 2023

Klaviyo is a customer data platform company which ingests marketing data & empowers their customers to automate their marketing with data & AI. When the company spends $1 in sales & marketing expense, Klaviyo produces $1.03 Typically, enterprise customers expand more than SMB. for the last 6 months.

Benchmarks 156

Benchmarks Venture Capital Marketing SMB 156

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 190

SaaS Payments Metrics Payments SMB 190

Tom Tunguz

SEPTEMBER 20, 2016

Today, we’ll dig into valuation metrics to see if there’s any systematic bias in the investor community for SMB, Mid-Market and Enterprise SaaS companies. SMB is less than $10k, Mid-Market is between $10k and $100k, and Enterprise is greater than $100k in average customer value.

SMB 100

SMB Scale SaaS Marketing 100

Tom Tunguz

AUGUST 26, 2023

Klayviyo is a customer data platform company which ingests marketing data & empowers their customers to automate their marketing with data & AI. When the company spends $1 in sales & marketing expense, Klayviyo produces $1.03 Typically, enterprise customers expand more than SMB. for the last 6 months.

Benchmarks 142

Benchmarks Venture Capital Marketing SMB 142

Tom Tunguz

SEPTEMBER 13, 2016

When an SMB SaaS startup is young with quickly growing revenues, more of the same works. For some SMB SaaS companies, generating this kind of lead volume even at scale isn’t a challenge. Some go-to-market teams are able to balance these demands well using Kenny van Zant’s flywheel model. ARR 1 5 10 25 50 100.

SMB 100

SMB Scale Startup Marketing 100

SaaStr

FEBRUARY 9, 2024

In this latest episode of CRO Confidential , Sam Blond, Partner at Founders Fund and former CRO at Brex, sits down with the CRO of Zapier, Giancarlo Lionetti (GC), to chat about Product-Led Growth (PLG) and Go-To-Market (GTM). In a product-led growth strategy, the product serves as the focal point of your company’s marketing and strategies.

Scale 242

Scale Sales Hiring Sales Marketing 242

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 221

Scale Underperforming Technical Team SMB Finance 221

SaaStr

MAY 10, 2023

And second, it’s similar to the apps many of us build, sell, and market ourselves. Revenue Up 30%, but Employee Count Only up 10%, to 7,055. At the end of the day, in SaaS, efficiency really comes from growing revenue faster than headcount. 40% of Their Revenues Comes from Partners. Including HubSpot. #4.

Scale 237

Scale SMB Headcount New CTO 237

SaaStr

FEBRUARY 7, 2024

The markets like this combination. Even with a few bumps, Atlassian is still trading at a $55 Billion market cap, so over 12x ARR. The markets say Yes to Atlassian. The markets say Yes to Atlassian. And also how important it is to go a smidge upmarket if you sell to SMBs and smaller customers. #2.

SMB 210

SMB Enterprise Scaling Trends 210

SaaStr

APRIL 4, 2023

If you don’t want your company defeated by change, you need to adapt your Go-To-Market strategy at every stage of growth. Managing Partner of CIPIO Partners, Rolan Dennert, shares how companies need to readjust and rethink GTM fit — and even product market fit — from time to time. This is true in life and business. It’s inevitable.

Scale 214

Scale Strategy Scaling Outbound Sales Team 214

SaaStr

MAY 7, 2021

Revenue growth accelerated from 32% to 41% * And new customer growth accelerated to a crazy 45% YoY * All while keeping ACVs constant at ~10k. They did it the hard way, with SMBs. HubSpot is sort a bell-weather stock and company for selling to SMBs and mid-market. And what we see is that SMB is on fire in SaaS.

SMB 357

SMB Revenue Enterprise SaaS 357

SaaStr

APRIL 26, 2023

Only 32% of Revenue From Websites. The majority of its revenue comes from ecommerce. Their pure website revenue, which they call “Presence”, is just 32% of their revenue. #2. 28% of their revenue from outside the U.S. Having said that, many SMB players were hit hard in 2022. 68% From Ecommerce.

Scale 210

Scale SMB Churn Pricing 210

SaaStr

JUNE 8, 2022

ARR, Zoom was an SMB powerhouse, with Enterprise growing. SMB is now saturated at $4B ARR and not growing, but Enterprise is picking up the slack and growing faster than ever. 5 Interesting Learnings: #1 This trend had started several years ago, but even in 2021, 63% of revenue was from 10 seat or smaller customers.

SMB 261

SMB Enterprise Engineering Scale 261

SaaStr

SEPTEMBER 1, 2023

After that, the public markets began a precipitous decline — leading to an almost 2 year pause in SaaS IPO. 119% NRR from SMBs Profitable, and only burned $15m net to date 130,000 total customers There’s not much to not love here! But the metrics, especially for an SMB-focused SaaS business, are breathtaking.

Scale 208

Scale SMB Sales Hiring Interviewing 208

SaaStr

MAY 18, 2022

RingCentral is a very interesting case study in SaaS of starting very SMB, way in the early days of SaaS in 1999, keeping at it … and then tilting upmarket to going much more enterprise post-IPO. Fast forward to today, they are 27% SMB and 63% Mid-Market and Enterprise at $2B in ARR growing 33%. of revenue.

SMB 240

SMB Enterprise Scaling Revenue 240

Kellblog

APRIL 19, 2024

CEO: Mid-market (MM). A lot of today’s SMB companies will be mid-market tomorrow, so we want to catch them on the way up. DK: OK, but what about our marketing, do we have any focus there? CEO: Well, you know, you can’t really control who clicks on a Google ad, so we can get inbound from SMB, MM, and ENT.

Startup 98

Startup SMB Airlines Banking 98

SaaStr

JANUARY 5, 2024

Did Figma kill the M&A market in 2024? Dominates a vertical market with over $500M ARR. 12,000 customers, very high net review retention (NRR) even with SMB customers. Did Figma Kill the M&A Market: There is a huge appetite for M&A today. So Harry Stebbings and I got back together for the first 20VC of 2024!

SMB 282

SMB SaaS AI Software Review 282

SaaStr

AUGUST 24, 2022

They dominate a large market, and are growing almost 60% at $800m in ARR! And yet, the markets are tough today, and Toast is now worth less than $10 Billion, despite executing admirably. SMB sales (most of Toast) is very tough to do without a highly efficient and effective sales force. Fast forward to today.

SaaS Payments 271

SaaS Payments Scale SMB Payment Solutions 271

SaaStr

SEPTEMBER 8, 2021

How can Sales and Marketing work together? The simplest way is to get sales and marketing to work together is to (x) align marketing’s #1 goal to a revenue-related “commit” that (y) sales agrees to. Your VP Marketing Needs a Lead/Opportunity Quota. Your VP Marketing Needs a Lead/Opportunity Quota.

Marketing 181

Marketing Sales Social Media SMB 181

SaaStr

AUGUST 30, 2021

Started 10 years ago as “Freshdesk” and a low-end / SMB helpdesk to rival Zendesk, Freshworks has since expanded its product footprint across IT management (Freshservice) and CRM (Freshsales) to a stunnning 49% growth rate at $350m in ARR. 49% revenue growth from 20% customer growth. Headquartered in the U.S., NRR of 118%.

Scale 339

Scale SMB Scaling Subscription 339

SaaStr

JANUARY 24, 2024

That’s compounded to $360m in ARR today, and a market cap of $3.4 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. Billion market cap winner in the space.

Social Media 202

Social Media SMB Enterprise Scaling 202

SaaStr

JUNE 22, 2023

My list: Not committing to 24 months upfront to getting to Real Revenues and a Minimum Sellable Product. It takes 7–10 years to build something real, and the first stage is the 18–24 months it takes to get real revenues and something off the ground. But they can challenge how you think about the market. At content marketing?

SMB 212

SMB SaaS B2C Interviewing 212

SaaStr

JUNE 2, 2022

The amount of folks buying SaaS software is a force like we’ve never seen before, and even with some stock market drama, many top SaaS companies still trade at $4B, $10B, $20B or more just a decade after being founded. Two things though did get hit harder — SMB Churn and Upsell s. That never even slowed down.

SMB 294

SMB SaaS Churn Enterprise 294

SaaStr

FEBRUARY 19, 2022

That journey here: Most of us don’t stay SMB forever. Zoom similarly started off almost 100% self-serve and SMB, and then later added an enterprise team. Today, 63% of the revenue is 10+ seat deals, and they have 2,000 Enterprise customers. PagerDuty was almost entirely SMB at IPO, at $125m in ARR.

SMB 331

SMB SaaS Enterprise Software 331

SaaStr

JULY 22, 2021

Its roots are in SMEs sold directly, a market a lot of us attack as well. market cap. That’s the power of compounding revenue right there: 5 Interesting Learnings: #1. They earn commissions and are offered dedicated sales, marketing and training support. 180,000 revenue per employee. And growth is strong.

Scale 321

Scale SMB compliance Churn 321

SaaStr

JULY 31, 2022

The Challenge with SMB SaaS: High Growth Can Only Mask High Churn For Just So Long. SMB SaaS has a lot going for it, but one big existential challenge — inherent churn. SaaStr 575: The State of SaaS Marketing in 2022: Mutiny & SaaStr with the CMOs of Salesforce, Box and Attentive. It’s not as fun anymore.

New CTO 227

New CTO CTO SMB Venture Capital 227

SaaStr

JUNE 7, 2021

And all enterprise and mid-market products do. The grey area is often with SMBs. 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. A deeper dive on top-tier NRR for SMBs here.

Customer Success 306

Customer Success Scale SMB Sales 306

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. Why is this market different than others?

Metrics 194

Metrics Marketing SaaS SMB 194