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

NOVEMBER 30, 2023

General Partner Doug Pepper and General Partner and Head of Analytics at ICONIQ Growth, Christine Edmonds, share the art and science of scaling GTM at this year’s SaaStr Annual. This is the stage where best-in-class companies can double or triple revenue in the first few years of growth. What does that mean?

Scale 223

Scale Sales Hiring Scaling Outsourced Development 223

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 100

Metrics Customer Lifetime Value Scale SaaS 100

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? Scale with SMEs.

Revenue 214

Revenue Scale Engineering Marketing 214

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

JANUARY 21, 2022

You might feel confused about where to begin, how to scale up, which mistakes you should avoid, and things you should consider before expanding. Now, let’s look at ten learnings that Dorian gathered while scaling Grammarly from a Consumer to an Enterprise brand with B2B offerings. Enter your email below for the latest SaaStr updates.

Scale 196

Scale SMB Enterprise Sales Hiring 196

SaaStr

JANUARY 24, 2023

As SaaS founders are looking to scale and raise funding, it can be confusing and stressful to navigate in the uncertain market of the past few years. In the SaaS space, revenue growth was the king of metrics for many years, but that has changed. Stay mindful of efficiency metrics as you scale, and be careful with spending.

Scale 212

Scale Scaling Software Review Operational efficiency. 212

SaaStr

DECEMBER 11, 2020

And with nearly 70% of global revenue for ISVs currently derived from third-party channel sales , no other approach to distribution ensures the exposure and revenue of the channel. By doing so effectively, you can unlock a path to scaling profits. Three distinct stages of channel maturity. appeared first on SaaStr.

Scale 275

Scale Scaling Marketplace as a Service Cloud 275

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

SaaStr

SEPTEMBER 19, 2022

Rav Dhaliwal, Investor and Venture Partner at Crane Ventures , Lindsey Serafin, VP of Customer Success at Snyk.io , and Caitlin Sullivan, Director of Customer Success at Vanta, discuss what customer success is, who owns it, what customer metrics you should look at, and what you need to focus on if you want to scale digital customer success.

Sales Hiring 231

Sales Hiring Customer Success Scaling Construction 231

Tom Tunguz

SEPTEMBER 19, 2021

If that’s not a suite… Founded ten years ago, the company has scaled rapidly selling their software management suite to small and large companies alike. Revenue, $M. Revenue Growth. -. Gross Margin. Sales Efficiency. -. Net Income Margin. Large Customer NDR. Average Customer Value, $k. Customer Count.

Metrics 315

Metrics Outsourced Development Scale Cloud 315

SaaStr

JULY 13, 2022

Co-founder and CEO of Insider , Hande Cilingir, talks about what it takes to write a successful revenue growth story. She draws from personal experience scaling a global product company to $1B and shares common mistakes. The establishment of the enablement function is vital in scaling a business. Mistake 2: Hiring with urgency.

Scale 211

Scale Sales Hiring Revenue Marketplace as a Service 211

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). New Customers Still Growing 22% at Scale.

Scale 219

Scale Pricing Scaling Cloud 219

SaaStr

OCTOBER 17, 2023

If you’ve raised venture capital, you know net revenue retention is important. PST — Former VP of Customer Success and current founder and Managing Partner at Success Venture Partners, John Gleeson, shares his lessons learned scaling customer success from $1M to $300M in ARR. An ability to scale through a couple of stages of growth.

Scale 164

Scale Sales Hiring Customer Success Scaling 164

SaaStr

FEBRUARY 24, 2023

How do the best-in-class companies perform when ARR is treated as a growth metric? They initially double their ARR each year in scaling post $10M. The revenue per FTE surpasses the spending around the $100M mark in ARR, and the trend continues to IPO where revenue growth doesn’t lead to an inflation of per-employee spend.

Scale 196

Scale Sales Hiring Scaling Venture Capital 196

FastSpring

APRIL 18, 2024

How FastSpring (a merchant of record to help you sell your SaaS or software) and DutchBasecamp (a Dutch organization supporting European startups and scale-ups in building a structured internationalisation strategy which prioritizes the right opportunities for their market expansion) can help you with all of the above and more.

Payment Methods 78

Payment Methods Payments SaaS Payments Merchant Services 78

SaaStr

OCTOBER 11, 2023

Monday has gone from $7m in 2017 to over $700m in revenue today, showcasing the sheer power of compounding revenue. Eran Zimman, monday.com’s co-founder and co-CEO, shares his secrets to scaling and growth in an unpredictable market. Big Brain was an internal tool to track revenue, marketing expenses, and usage of the product.

Scale 164

Scale Sales Hiring Scaling Banking 164

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

SaaStr

NOVEMBER 25, 2022

Scale-ups are exciting. Scaling to satisfy customers’ demands depends on innovation and foresight combined with enterprise-ready technology and the right partners. On top of considerable dedication, creating a scale-up requires a functional edge—a unique and unreplicable capability compared to the players in the industry.

Scale 213

Scale Scaling Marketplace as a Service Entrepreneurship 213

SaaStr

NOVEMBER 28, 2022

These two departments are a SaaS company’s most important; without their alignment, there is no growth or scale. From 2010 until 2015, the SaaS world was becoming more complex with the introduction of static bundles and recurring revenue as an addition to the annual/monthly subscription model. Align on success metrics.

Scale 190

Scale Finance Sales Hiring Scaling 190

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

SaaStr

JANUARY 6, 2021

How do you scale a company based that can be collaborative for everyone in your org — from finance to marketing? Lastly, as a platform business, he had to avoid the temptation to optimize visible, short-term metrics such as revenue. The post Lessons in Scaling a Low Code Platform with Airtable appeared first on SaaStr.

Scale 191

Scale Software Review Scaling Sales Hiring 191

SaaStr

APRIL 2, 2021

Jamin Bell of Altimeter Capital has a great Substack looking a lot of SaaS and Cloud metrics. And the ones growing > 30% year-over-year post IPO (what it takes to remain a growth company) are worth a stunning 25x next year’s revenues. The ones were pretty good growth are worth 15 next year’s revenues.

Startup 255

Startup Revenue SaaS Cloud 255

SaaStr

DECEMBER 14, 2022

Yamini Rangan, CEO at HubSpot, has many insights on how to serve SMB customers at scale. But because SMBs are rarely digital-first, their recent challenges allowed HubSpot to leverage their years of experience in marketing automation, as it became a core feature of how these companies worked to scale.

Scale 214

Scale SMB Scaling Innovation 214

Tom Tunguz

MARCH 24, 2019

Focused on capital efficiency from the earliest days of the business, Eric has built a monster software business, with few comparisons in both absolute scale and efficiency. The company grew from $61m to $331m in revenue in the past three years. These metrics are the result of exceptional product market fit.

Metrics 279

Metrics Benchmarks Scale Acquisition 279

SaaStr

SEPTEMBER 1, 2021

Pretty incredible at scale. A new revenue team. Really, what you tend to see when you keep a stretch VP too long in their current role is flat metrics. But a VP whose metrics are flat for more than a quarter rarely if even finds a way to reaccelerate growth later. What changed? One that knew the next stage, col d.

Sales Recruiting 226

Sales Recruiting Scale Sales Hiring Metrics 226

Intercom, Inc.

SEPTEMBER 10, 2020

Applying data and science to scaling has become easier because of the shift that’s happened in the software industry over the past 15 years, from outside sales to inside sales. Or, even if they’re leaning towards the latter, they’re often not using the right metrics. A data-driven framework for scaling.

Scale 226

Scale Scaling Sales Recruiting Sales Hiring 226

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. And as your CS team scales, any individual rep may not be able to influence overall NRR all that much. Ok this many seem like an odd post on SaaStr. It’s true.

Customer Success 199

Customer Success Metrics Scale Retention 199

SaaStr

JUNE 22, 2021

If they don’t work together like a well-oiled machine — and surprisingly, often they don’t — you’ll have a real problem on your hands trying to scale. In sum -> Learning and understanding how to maximize the revenue per lead. The problem is, they don’t scale. They don’t scale.

Sales Recruiting 300

Sales Recruiting Scale Sales Hiring Revenue 300

Intercom, Inc.

JULY 28, 2022

And for Intercom’s VP of Sales EMEA, Sanj Bhayro , scaling is just what you need to invest in to ensure growth becomes as constant and linear as it can be. By the time he left to join Google Cloud as EMEA VP of Operations and Customer Growth, Salesforce had around 17 billion dollars in revenue and almost 50,000 employees.

Scale 210

Scale Scaling Sales Hiring Sales Recruiting 210

SaaStr

JUNE 11, 2020

In B2C and high-churn environments, it’s indeed a critical metric. But in SaaS, in the earlier days, we inherited a lot of our lingo and metrics from B2C web services. They were earlier to mass-scale recurring revenue services on the web than B2B was. So we used their core metrics like “Churn” and “Lifetime value”.

Metrics 197

Metrics Customer Lifetime Value B2C B2B 197

Intercom, Inc.

DECEMBER 8, 2020

This is where metrics can be invaluable, giving clarity on performance, and circumventing potential issues. But with so much data to consider, how can you define the help desk metrics that matter for your team? What are help desk metrics? Help desk metrics vs. KPIs. Ticket volume or total conversations.

Customer Support 211

Customer Support Metrics Technical Review Scale 211

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 92

Metrics Customer Lifetime Value SaaS Scale 92

SaaStr

MAY 17, 2021

We overindex on the inside information, and how quickly we assume they could scale up … and because of that, we let their other weaknesses slide in candidates we otherwise wouldn’t hire. Sales reps don’t have to scale in a day. More here: How to Close More Revenue Today — With The Leads You Already Have. Not Training Reps.

Scale 223

Scale Sales Hiring Scaling Sales 223

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. 40% of their revenue comes from agencies, partners, and others deploying HubSpot for small businesses. Billion in ARR.

Scale 231

Scale Cloud Pricing Scaling 231