SaaStr

DECEMBER 12, 2023

Keybanc and Sapphire have some great overall metrics here : Overall, the media AE closes $750,000 a year, and that’s actually up from 2022 — mainly due to hiring freezes and contractions. Enterprise reps tend to close more ($1m+), and SMB reps less (maybe $500k), with $750k net new bookings per year the median.

SMB 263

SMB Sales Hiring Enterprise Metrics 263

SaaStr

JANUARY 21, 2022

Dorian Stone , Head of Organizations Revenue at Grammarly, is here to share lessons from his experience of scaling the company from consumer to SMB to Enterprise to help you steer your expansion efforts in the right direction. The admin, influential decision-makers, and consumer sales reps can be the same people in a Consumer or SMB setting.

Scale 191

Scale SMB Enterprise Sales Hiring 191

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 194

Metrics Marketing SaaS SMB 194

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? So now we must be smarter about the most important SaaS metrics because they matter again.

Metrics 178

Metrics SaaS Sales Hiring Finance 178

Kellblog

APRIL 19, 2024

A lot of today’s SMB companies will be mid-market tomorrow, so we want to catch them on the way up. 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. Segmented metrics. Without segmented metrics, you can’t easily tell. Not-on-list lists.

Startup 98

Startup SMB Airlines Banking 98

OPEXEngine

MAY 18, 2021

In this blog, we are looking at the business metrics that can be measured quantitatively and providing a few insights on how investors analyze them. We’ve talked to dozens of our SaaS customers, as well as investors to learn more about what is happening with these key metrics. SaaS Metric #1 – Annual Recurring Revenue (ARR).

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

SaaStr

JANUARY 13, 2022

Average NRR at IPO is 119% — but this excludes a bunch of SMB folks who did not disclose their NRR. Folks that are very SMB with mediocre retention often don’t disclose it. Pretty consistent with what we’ve seen on our 5 Interesting Learning series , but helpful to see it distilled to one average number.

SMB 296

SMB SaaS Retention Scale 296

SaaStr

APRIL 26, 2023

A tough metric. Having said that, many SMB players were hit hard in 2022. Zoom’s SMB customers shrunk for the first time ever, for example. Diversifying into the restaurant space makes sense — it’s one of the largest segments for SMB commerce. A reminder to go global! #4. New customers only grew 3%.

Scale 210

Scale SMB Churn Pricing 210

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

SaaStr

SEPTEMBER 1, 2023

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. 14 Month CAC CAC (Customer Acquisition Cost) is one of those metrics there are about 10,000 ways to calculate.

Scale 208

Scale SMB Sales Hiring Interviewing 208

SaaStr

APRIL 9, 2023

SaaStr 647: Scaling The Top SMB SaaS Companies: What It Takes with GGV Capital Managing Director Jeff Richards and GGV Capital Partner Tiffany Luck   3. 5 Metrics Every SaaS Company Should Care About with Salesforce Ventures (Workshop Wednesday) 2. All Your VPs Really Need to Do is Tilt the Curve Top Podcasts This Week: 1.

Scale 191

Scale SMB Generative AI Management 191

SaaStr

JUNE 29, 2022

But this will be one of the last chances we get to see its financials and metrics as a public company. Once it goes private again later in 2022, Zendesk won’t publish many metrics anymore. Even though Zendesk still has thousands and thousands of SMB customers. #2. Zendesk IPO’d as an SMB support solution.

SMB 250

SMB Scale B2B Metrics 250

SaaStr

APRIL 10, 2023

Others may seek to corner the SMB market. Zendesk knew that they could risk selling to startups like any other SMB, so that was the problem they set out to solve. Durham says, “We are judging ourselves in how we treat startups differently from an average SMB. However, what many businesses may overlook is the startup segment.

Startup 190

Startup Scale SMB Venture Capital 190

SaaStr

AUGUST 6, 2022

The Challenge with SMB SaaS: High Growth Can Only Mask High Churn For Just So Long. SaaStr 578: The Metrics that Matter, Whether You Are Raising $1 Million or $100 Million with Index Ventures Partner Molly Alter. Top Videos This Week: The Metrics that Matter, Whether You Are Raising $1m or $100m | Index Ventures Partner Molly Alter.

SMB 200

SMB Startup Scaling Churn 200

SaaStr

DECEMBER 31, 2022

A great deep dive on just how different metrics and KPIs are for bootstrapping. #5. The 4 V’s of Sales: Volume, Value, and Velocity: Waze Head of SMB Sales & Head of Sales Enablement. A good and different look at some good ideas for SMB sales. #6.

Scale 186

Scale SMB Innovation B2B 186

OPEXEngine

MARCH 13, 2020

Last week, Mike Volpe, CEO of Lola.com , and I had a terrific, hour-long discussion on the value of a metrics-driven culture at every stage of growth, from early stage to large enterprise. As the SaaS industry has evolved, so too have the metrics and company management structures. through today’s SaaS 4.0. Key Take-Away.

Metrics 75

Metrics Cybersecurity SaaS Customer Lifetime Value 75

SaaStr

JANUARY 20, 2022

How to check on a competitor's growth plan: 1/ Search on LinkedIn how many sales reps they have 2/ Multiply by $500,000 ($250,000 if SMB). You can tweak it “up” a bit for SMB, and down a bit for enterprise, but $500k is close enough in most cases, especially as most of us sell at a variety of deal sizes.

SMB 226

SMB Scale Startup Enterprise 226

SaaStr

NOVEMBER 2, 2022

The core product is very B2C, but the upgrade to paid has very SMB B2B metrics, and 80% of the revenue is subscription based. We wrote a classic SaaStr post long ago saying you needed about 50,000,000 Freemium users to make the model work, more or less, and Duolingo’s metrics tie to this. But is Duolingo SaaS?

Scale 286

Scale B2C SMB B2B 286

SaaStr

OCTOBER 21, 2023

Dear SaaStr: What is the average percentage of annual vs. monthly plan sold for a BtoB SaaS startup targeting the SMB market? 90% of Smartsheet’s SMB customers pay annually. 20%+- will pay annually to save money. Most would rather skip the discount and pay less now. 38% of Freshworks customers pay monthly.

Data 200

Data SMB Payment Features Churn 200

SaaStr

JULY 20, 2022

While these aren’t great metrics if Weave was enterprise, they are still solid for SMBs. Many SMB SaaS companies struggle to hit 100% NRR and 80% GRR. A fairly standard SMB price point. Weave has a base to build on, and has done a good job steadily increasing NRR, up from 97% in 2019. #2.

SaaS Payments 222

SaaS Payments Scale Payment Methods Payments 222

SaaStr

DECEMBER 8, 2022

NRR is Metric #1. This is a long-term theme on SaaStr, but it was interesting to me just how much this is Yamini’s #1 north star metric. Even selling to SMBs, HubSpot gets half its growth at scale from its installed base. The average SMB now uses almost 300 (!) The rest of spend is being cut. More Than Sales.

Scale 218

Scale SMB Scaling Customer Success 218

Tom Tunguz

APRIL 16, 2013

At first glance, SMB SaaS companies, those who sell Software-as-a-Service to small to medium businesses, may seem like any other software company. Successful SMB SaaS companies have reinvented their businesses eschewing the expensive enterprise sales model in favor of end-user centric marketing, support and product development.

SMB 100

SMB Scale Startup SaaS 100

SaaStr

DECEMBER 20, 2021

Moving from Churn to NRR as the Core Retention Metric. This may sound obvious to more enterprise folks, but many Very Small Business and SMB focused SaaS companies still focus more on churn than NRR. It’s part of the legacy of B2C and SMB having a lot of similarities in SaaS. NPS is A Great Core Metric. #3.

Metrics 50

Metrics SMB Scale B2C 50

SaaStr

JANUARY 12, 2021

Most of the companies in this 5 Interesting Learnings Series have had net negative churn from SMBs (e.g., Xero’s SMB churn isn’t zero. Customer Lifetime Value is 81 months, from SMBs. This is a critical metric. It takes them over a year to go profitable on an SMB customer. Zoom, PagerDuty, etc.).

Customer Lifetime Value 205

Customer Lifetime Value SMB Churn Scale 205

SaaStr

APRIL 16, 2023

SaaStr 647: Scaling The Top SMB SaaS Companies: What It Takes with GGV Capital Managing Director Jeff Richards and GGV Capital Partner Tiffany Luck                           Top Videos This Week: 1. 5 Metrics Every SaaS Company Should Care About with Salesforce Ventures (Workshop Wednesday) 3.

Generative AI 163

Generative AI SMB Education AI 163

SaaStr

OCTOBER 30, 2021

Their CEO will join us at SaaSr Scale 2021 on December 15 to talk about using data to get to 10,000 SMB customers! I asked Aasif Osmany to share his learnings as a top-performing SMB VP of Sales, below. My personal objective was simple, learn as much about SMB SaaS as I could and move on to another company to continue learning.

Scale 246

Scale Sales Hiring Sales SMB 246

SaaStr

MAY 18, 2021

Squarespace is almost all not just SMB, but self-service. More here: Public SaaS Company Disclosure Metrics for Retention and Renewal Rates. 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%.

Merchant Services 262

Merchant Services Revenue SMB SaaS 262

SaaStr

JULY 13, 2023

Being very careful here is especially critical with SMB SaaS, where the ACVs are lower. NRR is the NorthStar metric in SaaS, but we all agreed it can be gamed, to some extent. Most important metric to them is the % of paid base actively using the product. Monday has been very rigorous about its market spend since Day 1.

SMB 171

SMB Scaling Metrics B2B 171

SaaStr

JANUARY 3, 2021

OK, so if an SMB rep needs to make say $80-$100k in OTE (base + bonus) … and you need to clear say $300k in revenue from that rep to make the math work on your side … at say 100 closed deals a year, to bring in $300k to the company, each deal has to have a $3,000 ACV on average. In fact, you can go a lot lower.

SMB 328

SMB Pricing Sales Metrics 328

SaaStr

JANUARY 23, 2021

We’ve seen a lot of leaders with tons of SMB customers and a smaller number of $100k+ deals, but Cloudflare is perhaps the most extreme here. We’ve seen this metric vary wildly at public SaaS and Cloud companies. Others like PagerDuty and Surveymonkey have traditionally started with SMBs, but gone more enterprise post-IPO.

SMB 250

SMB Cloud Enterprise Scale 250

Tom Tunguz

AUGUST 26, 2023

Metric at IPO KVYO BRZE Primary Motion PLG SLG Revenue Growth 54% 52% Revenue, $m 585 185 Gross Margin 77% 72% ACV, $k 4.5 Typically, enterprise customers expand more than SMB. For 2022, approximately 10.6% of our new ARR was attributable to customers that chose to install Klaviyo through Shopify’s App Store.”

Benchmarks 156

Benchmarks Venture Capital Marketing SMB 156

Sales Hacker

SEPTEMBER 25, 2019

Enterprise sales is hard, which is why most businesses start as an SMB org and grow into an enterprise org. So let’s look at how to drive sales in a high-growth situation, so the transition from SMB to enterprise is smoother (and faster). 2 rules for transitioning from SMB to enterprise. That’s not hard to believe.

SMB 73

SMB Enterprise Strategy Compensation 73

SaaStr

MAY 19, 2019

What lessons can we learn from this huge Kiwi SMB success, for other founders? ” So even in SMB sales in smaller markets, if you take dominant market share — you can get to $500m+ in ARR! ” So even in SMB sales in smaller markets, if you take dominant market share — you can get to $500m+ in ARR!

SMB 210

SMB Customer Lifetime Value AWS Churn 210

SaaStr

MAY 23, 2023

Enterprise Quota:OTE ratios are higher (5x+), SMB is a bit lower, but at the end of the day, you need to close 4x-5x what you take home. #2. Many SaaS companies are struggling to hit those metrics these days, but that’s still consistent with my experience in how the best sales teams achieve when startups are fast growing.

Scale 250

Scale Compensation Sales SMB 250

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 metric is more self-explanatory, so I won’t go into detail.

Cloud 177

Cloud Software Azure AWS 177

SaaStr

JANUARY 23, 2021

We’ve seen a lot of leaders with tons of SMB customers and a smaller number of $100k+ deals, but Cloudflare is perhaps the most extreme here. We’ve seen this metric vary wildly at public SaaS and Cloud companies. Others like PagerDuty and Surveymonkey have traditionally started with SMBs, but gone more enterprise post-IPO.

Scale 264

Scale SMB Cloud Enterprise 264

Tom Tunguz

AUGUST 26, 2023

Metric at IPO KVYO BRZE Primary Motion PLG SLG Revenue Growth 54% 52% Revenue, $m 585 185 Gross Margin 77% 72% ACV, $k 4.5 Typically, enterprise customers expand more than SMB. For 2022, approximately 10.6% of our new ARR was attributable to customers that chose to install Klaviyo through Shopify’s App Store.”

Benchmarks 142

Benchmarks Venture Capital Marketing SMB 142