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Price low to minimize adoption friction, grow quickly, and then move up-market after developing broad adoption. Skimming is less common in the software world because few startups develop a product at launch that will be accepted by the most sophisticated customers (and those willing to pay prices that generate the greatest margin).
This is a classic enterprise SaaS challengebalancing the need to close big deals with the risk of overextending your team on custom work. For example, you could charge a one-time fee for custom integrations or even better, bake it into the contract as a higher annual price. When Do We Say Yes?
SaaStr CEO and founder Jason Lemkin chats with Mangomint CEO Daniel Lang about why vertical SaaS is booming and how Mangomint got to 110% NRR. What was once considered too small or too niche, vertical SaaS has recently emerged as a hotbed of innovation and profitability. Full-Stack SaaS for SMBs Toast today is worth $14B at $1.5B
The Great Spending Showdown: AI vs SaaS in 2025/2026 — What Every B2B Leader Needs to Know We’re witnessing the most dramatic shift in enterprise tech spending since the cloud migration began 15 years ago. Meanwhile, SaaS — our tried-and-true darling — is projected at $295 billion with a “mere” 18.4% year-over-year.
To put this in perspective, it took Snowflake—one of the fastest SaaS companies in history—six quarters to go from $1B to $2B ARR. API-First Revenue Model Unlike the subscription-heavy models of traditional SaaS, 70-75% of Anthropic’s revenue comes from API calls through pay-per-token pricing.
So Okta rose to rapid growth and IPO as the stand-alone leader in enterprise identity for apps, acquired Auth0 to own it for developers, and now coming up on $3 Billion in ARR, it has settled into a more mature state: $2.75B in ARR Growing 12%, projected to slow to 10% Non-GAAP operating margins of 27% Free Cash Flow margins of 35% (!) $18B
Veeva is the dominant cloud software provider for life sciences – serving pharmaceutical, biotech, and medical device companies with mission-critical applications for drug development, clinical trials, regulatory compliance, and commercial operations. market cap – up from $2.4B market cap – up from $2.4B net income, 111.5%
International Developer Talent Is Reshaping SaaS Economics The Surprise : About 60% of companies already outsource app development , and India is expected to overtake the US in number of developers by 2030. US developer salaries are showing signs of weakening.
Luckily, FastSpring isn’t just a payment service provider — we’re a merchant of record, which means you can outsource the entire cross border transaction process to us , and we’ll handle all the complexities that come with it. FastSpring handles the entire payment process from checkout to remitting end-of-year taxes for SaaS companies.
The 40% Tipping Point : With 40% of workloads now in the cloud, SaaS has hit market maturity. AI is Eating SaaS Budgets : Companies like Cursor are generating massive revenue by replacing traditional SaaS workflows entirely. The SaaS slowdown isn’t happening in isolation. This probably isn’t a temporary blip.
Moving upmarket isn’t just a nice-to-have for most SaaS companies – it’s often the difference between building a sustainable $100M+ ARR business and getting stuck in the mid-market quicksand. Start Planning for Enterprise Earlier Than You Think The biggest mistake SaaS companies make?
For SaaS founders, NVIDIA’s journey offers critical lessons about platform strategy, timing major transitions, and building infrastructure that becomes indispensable. The B2B Parallel : Like the best B2B companies, NVIDIA created switching costs through their software stack (drivers, development tools, APIs).
✨ Lemkin (@jasonlk) June 23, 2025 The $10M-$100M ARR Sprint: How Replit Became the Fastest-Growing “Vibe Coding” App (Or One Of The Fastest) A deep-dive into the AI development platform wars and why Replit’s 10x growth in 5.5 And allowing more experienced developer to ship far, far faster.
Company Snapshot: Founded : January 2014 (11 years) Current ARR : $1.09B+ (Q1 FY2025) Growth Rate : 39% YoY ARR growth, 47% revenue growth NPS Score : 80 (exceptionally high for enterprise software) Net Revenue Retention : 133% (as of Jan 2024) Customers : 2,246 customers with $100K+ ARR contracts IPO : April 2024 on NYSE (RBRK) at $5.6B
The “old” default TAM logic goes like this: # developers × $20/month = market size. because Copilot started charging $20 / month / dev) Call it ~$7B globally (~30m developers x $20 x 12 months). A contract review tool that quietly has lawyers behind the scenes. Take AI code editors like Cursor or Claude Code.
So I’d just about given up on the second worst SaaS vendor in our stack at SaaStr. The SaaS Resurrection Playbook What can B2B companies learn from this dramatic turnaround? “They had literally signed the contract with our competitor, but hadn’t completed migration. And would never think to cancel.
It knows what every SaaS leader ever featured on SaaStr thought about critical business challenges at every stage of growth. The SaaStr AI is already one release away from being able to automatically send contracts for simple sponsorship deals rather than just connecting prospects with sales reps.
” This approach gave them insights no amount of customer development interviews could provide. Simplified Pricing to Annual-Only Early Vanta initially offered both monthly and annual pricing options, following the standard SaaS playbook. Would you use it? Would you pay for it?” “We had special versions of those jobs.”
ACVs that would have taken years to achieve in traditional SaaS are becoming standard in AI applications. Higher Willingness to Pay Enterprise customers are demonstrating unprecedented willingness to pay premium prices for AI solutions that augment human capabilities.
HubSpot CEO Yamini Rangan just laid it bare at a recent conference, and it should make every SaaS leader uncomfortable. A few examples from SaaStr speakers: David Sacks (Craft Ventures, Yammer ) has talked about how, in early-stage SaaS, even with a small sales team, you often see only 50%-60% of assigned accounts getting proper follow-up.
With 17 years of venture capital experience, Ethan began his career in consumer investing before pivoting to B2B, where he developed particular expertise in developer platforms and B2B software.
So read on, and hopefully, your SaaS sales journey will be less about trial and error and more about steady progress toward success. PLG-first SaaS companies rely on their product as the primary way to engage customers, making self-service sales a natural fit for conversion after experiencing the product.
When it comes to your SaaS tech stack, there’s a lot to keep track of. From keeping all of your contracts organized to ensuring all of your data is secure, it’s nearly impossible to do it all in a spreadsheet. If you’ve found your company experiencing the same SaaS spend challenges regularly, let BetterCloud solve them for you.
2024 is coming to a close, and it has been a terrific year for SaaS businesses as the industry has witnessed quite a favorable growth. For SaaS companies, accounting becomes one of the most crucial processes to understand their financial and overall business health, and then make informed decisions about future steps.
With both high complexity and large volume, data within SaaS apps can be difficult to protect. This is why security teams require SaaS security assessments. Get answers to these 7 key InfoSec questions when buying your next SaaS app. Here are 6 common threats that could lead to a SaaS apps sensitive data exposure or loss: 1.
higher average contract values Why they choose SaaStr sponsors: When the world’s top SaaS executives need solutions, they turn to companies that demonstrate thought leadership in their trusted community. pic.twitter.com/8UDvVvMHPD — Jason ✨👾SaaStr.Ai✨
This is a guest article by Swati Garg , founder and CEO, Melo Associates , and Lindsay Lynch , senior recruitment consultant, Melo Associates , a recruitment firm focused on customer success hiring for SaaS and tech companies nationwide. Develop and execute strategic success management plans to foster long-term customer relationships.
Hit that, and you aren’t even really selling , you’re simply fielding contracts. When the company is focused on customer ROI, Marketing can develop campaigns around that ROI, and sales can qualify prospects based on their need for that return. A dated focus For years, getting to “product-market fit” was the holy grail. said Edward.
We asked ChurnZero’s network of expert partners and SaaS thought leaders to weigh in. That will open the way for CSMs to focus, increasingly, on handling complex issues and developing strategic solutions for the largest clients. While its natural to be nervous, you shouldnt be in the long run. Its a bumpy road to the top.”
Customization options for industry-specific needs A retail store, a SaaS platform, and a service business dont have the same needsand your payment provider should reflect that. Transparent contracts and customer support Hidden fees, long-term lock-ins, and vague terms can turn a payment processor into a liability.
MRR is an important metric for SaaS businesses to track to understand business health. Why MRR Matters for SaaS and Subscription Businesses MRR is more than just a random number sitting in a dashboard somewhere; it’s critical to understanding your business health. MRR can measure performance of various customer segments.
Artificial intelligence is everywhere from smart content generators to coding assistants and its changing how SaaS products are built and marketed. For SaaS founders, product managers, developers, and tech enthusiasts, knowing the difference matters. Suddenly, every SaaS platform wanted to add GPT-powered features.
Over time, sales and marketing teams across the industry have developed sales discovery frameworks that help to guide sales reps through structured conversations with the customer to decide whether they are a qualified prospect. We assign them a 50% win likelihood, and opportunities at this stage are in the Best Case forecast category.
With money on the mind, its no wonder that SaaS consolidation trends have continued. The average number of SaaS apps have declined by 18% from 2022 to 2024 State of SaaS 2025 1. For more complex consolidations, develop a detailed phased implementation plan with clear milestones, responsibilities, and communication strategies.
In today’s competitive SaaS landscape, Customer Success has emerged as a vital strategic asset, driving revenue growth and long-term profitability. For example, the scenario featured in this guide looks at a situation where a SaaS company investing in a personalized onboarding program assumes $250,000 in additional revenue over five years.
more efficiently, developers rely on LLM orchestration frameworks. As open-source tools like LangChain, LlamaIndex, and Flowise have emerged, SaaS builders and AI teams must choose the right one. An LLM orchestration framework is a toolkit or library that helps developers prompt, chain, manage, and monitor LLMs in applications.
While these can provide a ballpark figure, they are often unable to account for the complexities of modern billing arrangements, such as usage-based charges, one-time fees, or changing contract terms. Real invoice calculation allows finance teams to simulate different scenarios using the most accurate data available.
The importance of in-person interactions for the development of your team. And While this might not seem new, in an environment where it is tougher and tougher to get net new [00:09:00] contracts and customers in the door, it is great to see folks finally give the customer the support and attention that they deserve. Like, right.
Matt is a visionary leader, and he’s known for his strategic execution and has proven to see and set growth trends that have shaped transformative, innovative SaaS and FinTech companies for 25 years. I think we’re going to start to see that hit kind of mass scale over the next couple years is one example.
SaaS tools are fantastic, but keeping your tech stack from turning into a financial snowball can be tough. ets break down smart SaaS budgeting , so you can make your tech work for you, without blowing the bank. What is SaaS budgeting? These are the things youll discover when you take an inventory of your SaaS spend.
When it comes to customer intent, predictive analytics focuses on reading between the data lines to anticipate what your clients will do next—like renewing a contract, exploring new services, or even considering a competitor’s offering. By anticipating common client issues, you can develop self-service content or deliver proactive guidance.
He’s now an investor, advisor, and board member to iconic B2B SaaS companies, and one of the most respected voices in GTM for vertical SaaS. This episode is a special one, and you’ll learn tactical advice on scaling vertical SaaS companies. GTM Fund is an early stage B2B SaaS venture firm, and GTMnow is its media brand.
Developer API Documentation, API, Examples, FAQ and more. Developer API Documentation, API, Examples, FAQ and more. With the right mindset and strategies, you can overcome them and develop habits that stick. Another powerful strategy is creating a habit contract. Case Studies Learn best practices from our customers.
As a SaaS business owner, you are always looking for ways to improve your software and boost your bottom line. There is a constant debate regarding the cost benefits and challenges of outsourcing customer support when looking into adding payment integration features for your software users. The Pros of Outsourcing Payments Support 1.
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