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

APRIL 4, 2022

Jess Weimer, Senior Vice President of Revenue Marketing at Podium, discusses why it’s time to pivot from demand generation to revenue marketing and best practices for making that pivot. The original function of demand generation was about the top-of-funnel awareness and vanity metrics. Pillars of Revenue Marketing .

Scale 232

Scale Revenue Scaling Marketing 232

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 Subscription 94

User Pilot

FEBRUARY 26, 2024

Digital product metrics reveal how customers interact with your product. 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. We discuss 15 of the most important metrics and examine what to consider when choosing which metrics to track.

Metrics 97

Metrics Customer Lifetime Value Scale SaaS 97

Tom Tunguz

MARCH 28, 2021

Second, UIPath’s cash flow margin, (defined as cash flow from operations divided by revenue), shows the company has attained a turnaround of similar magnitude on a cash basis. Lastly, let’s touch on UIPath’s revenue streams. Impressively the gross margins for the two main revenue streams are stellar.

Payment Services 359

Payment Services Metrics Payment Solutions Payments 359

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 205

Metrics Machine Learning Artificial Intelligence Technical Review 205

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

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

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

SaaStr

MAY 13, 2022

There are many ways to track your marketing performance, but if you want to understand how effective it is, one metric reigns supreme: revenue. The most successful marketing strategies achieve short-term and long-term growth by driving revenue year after year. What is revenue marketing? Know your data.

Revenue 215

Revenue Scale Engineering Marketing 215

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 183

Metrics SaaS Sales Hiring Finance 183

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

Predictable Revenue

OCTOBER 31, 2022

We’re sharing our best sales coaching tips, along with nine key metrics to assess if you want to boost revenue. The post Maximize Revenue by Effectively Coaching Your Sales Team appeared first on Predictable Revenue. What does it take to be a great sales coach?

Revenue 147

Revenue Sales Metrics Development 147

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

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 85

Metrics Customer Lifetime Value SaaS Acquisition 85

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 96

Metrics Customer Lifetime Value Data Analysis Engagement 96

Predictable Revenue

FEBRUARY 15, 2021

The post 7 Critical Metrics to Measure the Effectiveness of Your Sales Enablement Strategy appeared first on Predictable Revenue. The better, more refined your sales process is, the more regularly you will sell. This is why supporting and training your sales team is so important.

Sales Enablement 278

Sales Enablement Metrics Strategy Sales 278

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. Gross Margin. Sales Efficiency. -. Net Income Margin. Cash Flow from Operations Margin. Large Customer NDR. Average Customer Value, $k. Customer Count.

Metrics 307

Metrics Outsourced Development Scale Cloud 307

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 346

Metrics Payments Banking Sales 346

SaaStr

FEBRUARY 14, 2023

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. Growth Is Still Number One Growth is still the number one metric, but it’s not the only one. You do that by showing momentum.

Metrics 201

Metrics SaaS Marketing SMB 201

SaaStr

JANUARY 20, 2021

Q: What are the top portfolio company metrics that VCs track post-investment? Where is the company in terms of revenue. A related post here: What are the most important metrics for SaaS? The post What Top Metrics do VC Funds Track After They Invest? In practice, there are just a few: ARR. Growth Rate.

Metrics 203

Metrics Investment Revenue SaaS 203

SaaStr

JULY 19, 2023

In a special workshop, Sam shares advice on how to spot bottlenecks, reallocate the right resources, and grow revenue in 2023. Step Two: Diagnose the Bottleneck to Closing More Revenue When your company doesn’t hit target revenue, it can be tempting to zero in on conversion rates. Sign up for free. Are the AEs outbounding?

Revenue 204

Revenue Acquisition Technical Review Systems Review 204

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%. The company spent $47m in 2019 on sales and marketing, and $52m in 2020, an increase of $3m or 6%, while growing revenues 49%. Gross Margin. Sales Efficiency. -. Net Income Margin.

Metrics 269

Metrics Benchmarks PayPal Enterprise 269

SaaStr

MARCH 1, 2021

Q: Can SaaS free pilots and trials periods count towards gross revenue then deducted as a marketing expense? If it’s truly free — it isn’t revenue. Third, if you want credit for deals with future contracted revenue, but without immediate revenue — add a new metric “contracted revenue” and carefully explain it.

Revenue 263

Revenue Metrics Scaling Software 263

SaaS Metrics

JUNE 18, 2023

There are many metrics that help gauge their success, including deferred revenue and SaaS revenue. Deferred revenue can be a tricky concept, as it involves the recognition of income or expenses on the balance sheet at a later date.

Deferred Revenue 52

Deferred Revenue Revenue SaaS Metrics 52

SaaStr

APRIL 11, 2020

Some of you won’t be able to grow revenue at all for now. Grow something that matters, so that when we pull out of this, you’ll grow revenue again, and maybe even faster than before. What can you grow besides revenue? You may be able to grow them a lot faster right now, even if the revenue lags.

Revenue 301

Revenue Healthcare B2B Branding 301

FastSpring

APRIL 18, 2024

McKinsey research into the future of customer experience showed an increase in sales revenue of 2%-7%. Other McKinsey research showed that when companies successfully create a better customer experience, they can see revenue growth of up to 10% and cost reductions of up to 25% over two to three years.

Payment Methods 78

Payment Methods Payments SaaS Payments Merchant Services 78

Tom Tunguz

JUNE 18, 2019

Over the last decade or so, I’ve compiled a metrics sheet to summarise a SaaS business. Redpoint SaaS Metrics Template. The template is broken into six sections: People, Bookings & Revenue, Cash, Sales, Marketing, Customer Success. This section covers employee satisfaction, headcount, and recruiting metrics.

Metrics 217

Metrics Sales Recruiting Startup SaaS 217

Sales Hacker

JANUARY 30, 2024

Only one month into 2024, we’re already seeing a significant shift in the marketing metrics world. Part of this re-evaluation has led many to believe it’s time to bid farewell to the Marketing Qualified Lead (MQL) as a primary metric and embrace the concept of pipeline as the new kingpin of success in marketing efforts.

Metrics 90

Metrics Marketing Technical Review Sales Funnel 90

SaaStr

APRIL 28, 2022

We’ve talked for 10 years about the power of compounding, recurring revenue. So don’t get me wrong — NRR is a Top 3 Metric for any SaaS company. Your gross revenue retention — what % of the revenue base a CSM has at the start of the year that you retain, before upgrades and growth.

Customer Success 200

Customer Success Metrics Scale Retention 200

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. . If you ask a SaaS founder the most crucial metric for his sales pipeline, they’ll likely say MRR.

Scale 212

Scale Sales Hiring Revenue Marketplace as a Service 212

SaaStr

MARCH 25, 2022

Tracking business performance through revenue targets remains one of the most valuable ways to measure company success. According to Blond, there are two main components to creating the perfect revenue goal: “There are two variables to hitting targets. At this stage, you don’t need a revenue target quite yet.

Sales Hiring 255

Sales Hiring Revenue Finance Startup 255

Predictable Revenue

MARCH 5, 2020

Metrics have become a pillar of modern sales. From interviews, to meetings, to ones day-to-day executional tasks – metrics, in one way or another, have become a part of them all. The post The rise of the anti-metrics sales leader with Joshua Desha appeared first on Predictable Revenue.

Metrics 205

Metrics Sales Interviewing Revenue 205