The Angel VC

APRIL 24, 2015

When I talk to SaaS startups and take a look at their metrics, it still happens quite often that some of the numbers aren’t quite clear to me and it takes some time to clarify things. I’m not referring to sophisticated reports or analyses but to the much more mundane question of what exactly people mean when they use a term like “revenues”.

Payments 193

Payments SaaS Payments Metrics Revenue 193

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 178

Metrics SaaS Sales Hiring Finance 178

SaaStr

APRIL 17, 2024

They’re still transitioning from onprem / appliciance model to cloud, which makes some of the metrics a touch confusing. But they are ar $780,000,000+ in ARR, with an 86 NPS and strong revenue growth at 29% overall and 49% in subscriptions (yes, it’s confusing). 68% of Revenue in U.S., 500m+ ARR, with ~50% growth?

Scale 212

Scale Pricing Scaling Cloud 212

Blulogix

DECEMBER 18, 2023

Usage Pricing: Turning Consumption into Revenue – A Practical Guide to Transitioning to Consumption Subscription Billing By BluLogix Team In the realm of consumption-based billing, navigating the intricate network of data staging and mediation stands as a pivotal factor in driving efficient billing processes.

Payment Features 52

Payment Features Subscription Pricing Revenue 52

Stax

JANUARY 24, 2024

The phrase “dynamic pricing” often sparks heated debates in eCommerce and retail, and it’s not hard to see why. If you’ve ever booked a hotel, ordered an Uber, or shopped on Amazon, you’ve experienced the effects of dynamic pricing in real-time. Prices may shift down or up at a moment’s notice.

Payment Methods 88

Payment Methods Pricing Airlines Payment Solutions 88

User Pilot

OCTOBER 24, 2023

From the messaging, positioning, and pricing models, every little detail needs to be perfect for product-led growth to take off. TL;DR Usage-based pricing is a consumption-based pricing model that charges customers based on how much they use a product (instead of at a flat monthly rate). What is usage-based pricing?

Pricing 105

Pricing Payment Solutions SaaS Payments Payments 105

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

JULY 13, 2022

Co-founder and CEO of Insider , Hande Cilingir, talks about what it takes to write a successful revenue growth story. These processes might include listening to employees, getting external feedback, or reviewing your metrics regularly. . Contract processes, packaging, and pricing might change. Mistake 2: Hiring with urgency.

Scale 204

Scale Sales Hiring Revenue Marketplace as a Service 204

FastSpring

AUGUST 19, 2022

According to an OpenView survey, by 2023, 56% of SaaS companies will be using or expecting to test usage-based pricing, which they define as “a pricing model that enables customers to pay for a product according to how much they use it.”. Seat-based pricing (SBP) is a usage-based metric. SaaS pricing is tough to optimize.

Pricing 134

Pricing SaaS Technical Review Forecasting 134

SaaStr

JANUARY 15, 2021

25% of revenue from professional services may sound high, but it’s a fairly standard ratio in true enterprise software. And isn’t services revenue a friction-full waste of time anyway? We had a brutal negotiation over price. And you’ll get the same SaaS ARR multiple on those extra services revenues.

Revenue 287

Revenue Pricing Enterprise SaaS 287

Buffer Resources

FEBRUARY 28, 2024

And you don’t get “business” status without understanding pricing. So, together with creator sponsorships expert Justin Moore , who helps creators negotiate partnerships through Creator Wizard , we put together this resource on how to figure out your pricing as a creator.

Pricing 96

Pricing Social Media Consulting Branding 96

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

Andreessen Horowitz

MARCH 22, 2024

We’re in the very early days of genAI and until adoption curves and costs stabilize, there won’t be any tried-and-true pricing or packaging frameworks. We’ve also seen some companies use their genAI feature as an upsell lever to increase conversion to a higher pricing tier or cover part of the cost of serving genAI.

Generative AI 116

Generative AI AI B2B Pricing 116

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. Their new revenue retention is about 85%. HubSpot is almost all small businesses, but at a higher price point ($10k) that is sold directly and through channel partners. Segment it.

Merchant Services 262

Merchant Services Revenue SMB SaaS 262

Clouded Judgement

APRIL 19, 2024

Subscribe now Rubrik IPO Update This week Rubrik launched their IPO with an initial pricing range of $28 - $31 / share. NTM revenue multiple. Their GAAP revenue grew 5% in 2023, and 29% in Q4 ‘23 YoY. For context, full year GAAP revenue in 2023 was $628m. Revenue multiples are a shorthand valuation framework.

Cloud 141

Cloud Scale Subscription Payment Features 141

FastSpring

SEPTEMBER 16, 2022

But what about pricing? When FastSpring’s Chief Product Officer Kurt Smith worked with growth-stage to Fortune 100 companies at Accel-KKR, he consistently saw pricing as one of the most essential growth levers they employed to meet their next revenue goal. Why You Shouldn’t Trust How Your Competitor’s Price.

Pricing 110

Pricing Payment Solutions Payment Services SaaS Payments 110

SaaStr

DECEMBER 17, 2021

Pricing is one of the most challenging elements to get right for SaaS companies. How much should you charge, and what pricing model works best? In an era of empowered buyers, vendors should take care to remove obstacles from the pricing process or risk losing the customer to a competitor.

Pricing 190

Pricing Scale Retention AI 190

Clouded Judgement

APRIL 11, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., This has all resulted in the median stock price declining 5% YTD.

Cloud 177

Cloud Software Azure AWS 177

Clouded Judgement

MARCH 29, 2024

Revenue multiples are a shorthand valuation framework. Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue.

Cloud 278

Cloud Forecasting Subscription Payment Features 278

Kellblog

OCTOBER 13, 2022

Is it MRR (monthly recurring revenue)? I’m writing this post to help readers who (like me) grew up in an annual subscription SaaS world adapt to the new and increasingly popular world of usage-based pricing [4], including month-to-month contracts and variable fees [5]. And what’s the impact on your other SaaS metrics?

Metrics 133

Metrics SaaS Payments SaaS Payment Features 133

Baremetrics

AUGUST 8, 2021

For most, the easiest ways to increase customer acquisition rates are to offer a freemium model or price your product on the lower end of the spectrum. However, to keep your business afloat, you’ll need to effect a SaaS price increase. Results in an Increase in Revenue 2. Raise Prices for New Customers 2.

Pricing 111

Pricing SaaS Scale Churn 111

SaaStr

APRIL 19, 2024

EchoSign, which Adobe bought, had $12M in ARR, growing 100%, with 120% revenue retention and cash flow positive. Today that would be a dream, but in 2011, people didn’t understand the metrics around recurring revenue businesses, so investors weren’t sure it was a good business. You Want One-Third of Your Revenue Outside the U.S.

Engineering 221

Engineering Business Model Pricing Scaling 221

Chart Mogul

MARCH 23, 2023

Are you effectively expanding revenue from your existing customer base? If you’re unsure, check your retention metrics. Gross revenue retention (GRR) and net revenue retention (NRR) are the key metrics to understand how well … How good is your business at retaining customers? Your NRR is 103.9%.

Retention 52

Retention Metrics Revenue Scale 52

Baremetrics

SEPTEMBER 10, 2021

When one company, or a group of companies, has a large enough market share in an industry, it may be able to push the price away from the equilibrium. This is called price leadership. Baremetrics is a business metrics tool that provides 26 metrics about your business, such as MRR, ARR, LTV, dunning, total customers, and more.

Leadership 98

Leadership Pricing Forecasting Customer Lifetime Value 98

Baremetrics

AUGUST 22, 2021

Subscription revenue can be defined most simply as a model which generates income from customers through recurring fees that are paid at regular intervals. Before we get into the more complicated stuff, let’s consider the difference between earning revenue and collecting revenue. Subscription Revenue is Easier to Scale 3.

Payment Features 90

Payment Features Payments Subscription Revenue 90

ChurnZero

JUNE 9, 2023

Good sales teams typically get the budget, headcount and tools they desire because the function is tied to revenue. 8 metrics to position Customer Success as a profit center with finance While sentiment-based metrics like Net Promoter Score ® (NPS) and customer satisfaction are important, they don’t frame CS work from a financial perspective.

Finance 98

Finance Metrics Customer Success Headcount 98

SaaStr

MARCH 27, 2024

To me, this is just the impressive metric of all. Revenue Growth is Up Just 24%. HubSpot’s revenue growth of 24% (21% in constant currency) is basically equal to its net new customer count. Despite raising prices and selling more products, HubSpot ACV is basically flat at $11,365. 5 Interesting Learnings: #1.

Scale 224

Scale Cloud Pricing Scaling 224

Chart Mogul

SEPTEMBER 6, 2023

You’re likely tracking all your global metrics to keep apprised of your business’ performance – ARR, churn, LTV, retention rates, etc. However, if high-level metrics are all you’re checking, you’re potentially missing trends in your data that hold the secret to unlocking more growth. Which plan? Are your plans equally profitable?

Revenue 52

Revenue Churn Pricing Operational efficiency. 52

Baremetrics

SEPTEMBER 9, 2021

When discussing the financial metrics for a SaaS company, revenue vs. profit is among the most common comparisons encountered. When a SaaS product or service has been developed, tracking the ROI (return on investment) involves always keeping revenue vs. profit at the top of mind. What is revenue? What is revenue?

Payments 103

Payments Revenue Payment Services SaaS Payments 103

User Pilot

APRIL 23, 2023

Do you know which product health metrics to track to achieve long-term success for your SaaS business? The right metrics and data will offer valuable product growth insights to help you make data-driven decisions about optimizing your products’ performance. Lifetime value determines revenue potential from each customer.

Metrics 97

Metrics Customer Lifetime Value SaaS Scale 97

FastSpring

MARCH 9, 2022

Answer: It’s the pricing page. The path to a signup or purchase may include a variety of page views, but it almost always includes the pricing page. In this article, we’ll show you examples from a variety of SaaS pricing pages. 7 SaaS pricing page examples. Add a summary table for pricing plans. How do we know?

SaaS Payments 122

SaaS Payments Pricing Payments Payment Methods 122

Baremetrics

JANUARY 24, 2021

This article will discuss the relationship between price change and customer retention. If I raise the price, will customers leave? The biggest challenge that leaders face is understanding how to think about price optimization and customer retention with the right framework. Does my new price make customers unsubscribe sooner?

Retention 126

Retention Pricing SaaS Subscription 126

Chart Mogul

JUNE 1, 2023

So if you are keeping a close eye on your retention metrics this year, you’re not alone. Retention is one of the most important metrics when building a successful SaaS business. So if you are keeping a close eye on your retention metrics this year, you’re not alone. faster than their peers in 2022.

Retention 90

Retention Metrics Benchmarks SaaS 90

Baremetrics

SEPTEMBER 26, 2021

There might not be an industry more addicted to its metrics than SaaS, and there is good reason for it. But how many SaaS financial metrics are you really tracking? Most SaaS companies keep an eye on churn, but do you calculate both revenue churn and customer churn? What are metrics? Revenue and expense metrics i.

Metrics 95

Metrics SaaS Payments SaaS Customer Lifetime Value 95

Baremetrics

APRIL 13, 2021

Value metrics influence how much you charge customers for your SaaS product or subscription service. These metrics determine whether users consider your product or service a good value for the money. When you track these metrics, you can increase or decrease your prices (or pricing tiers) based on customers' perceived value.

Metrics 98

Metrics SaaS Subscription Payment Features 98

Blulogix

DECEMBER 12, 2023

Why Usage-Based Pricing (UBP)? The Compelling Case for Change By BluLogix Team The B2B subscription landscape whispers of a transformative force – usage-based pricing (UBP). Gone are the days of one-size-fits-all plans and opaque pricing structures. Just a steady stream of revenue fueled by customer satisfaction.

Pricing 59

Pricing AI Search Subscription Payment Features 59

Baremetrics

JUNE 4, 2021

Baremetrics monitors 26 metrics, and on top of that offers 8 data boosting features so you can get more out of your metrics. If you want to see these metrics in action, you should sign up for the Baremetrics free trial. Annual Run Rate (ARR) This metric shows your current revenue projected out over 12 months.

Metrics 98

Metrics Payments SaaS Payments Payment Services 98