article thumbnail

The Complete Guide to SaaS Pricing Strategy

Tom Tunguz

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).

article thumbnail

Dear SaaStr: Our Biggest Potential Customers Are All Asking for Custom Features. When Do We Say Yes?

SaaStr

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?

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

The Rise of Vertical SaaS: Achieving 110% NRR from SMBs with Mangomint’s CEO

SaaStr

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

article thumbnail

The $939B Question: Is AI Eating SaaS or Feeding It?

SaaStr

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.

AI Search 289
article thumbnail

How Anthropic Rocketed to $4B ARR — And Why Your B2B Playbook May Already Be Obsolete

SaaStr

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.

B2B 249
article thumbnail

5 Interesting Learnings from Okta at $2.75 Billion in ARR

SaaStr

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

Scale 235
article thumbnail

The Early Days: How Veeva Hit $100m ARR With Just $3m Raised — And a Deep Vertical Focus

SaaStr

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%