SaaStr

JUNE 27, 2019

It may be the most successful SMB-focused app of our current generation. No hiding the monthly option, no pricing confusion: In fact 26% of Zoom’s customers still pay monthly, even at $500m+ in ARR: More here: 5 Interesting Learnings From Zoom. Then maybe pricing games are worth it. Zoom does not play games. As It IPOs.

Pricing 175

Pricing SaaS Payments Payment Solutions Payment Services 175

FastSpring

JANUARY 27, 2022

Note: FastSpring offers advanced subscription management services that support free trials, monthly and annual paid plans, proration, discount management, and more. How Castos upsells subscription tiers. His podcast hosting company uses data analytics that looks at which users are most likely to grow out of their current subscriptions.

Merchant Services 132

Merchant Services Payment Services SaaS Payments Payment Solutions 132

SaaStr

APRIL 19, 2023

One leader in SMB commerce is Lightspeed Commerce, founded way back in 2005. And their mix of software, payments and hardware revenue drives up the total deal size — but puts a lot of pressure on margins. Software subscriptions are only growing 9%, vs. 41% for payments / transaction revenue. #2.

Payment Solutions 223

Payment Solutions Point of Sale Payments SaaS Payments 223

SaaStr

MAY 8, 2021

And customer count varies a lot based on pricing / ACV: Dropbox may have the most customers of any SaaS company — 15m+ at $2B in ARR. Squarespace is at $700m ARR and has 3.7m “unique subscriptions” although it’s unclear how many unique customers that is. Wix is at $1B ARR, worth $15B and added 1 million new subscriptions in 2020.

SMB 198

SMB SaaS Subscription Payment Features 198

FastSpring

OCTOBER 18, 2018

In other words, we are now in an era of subscriptions, in which businesses are progressively moving towards subscription-based business models. With subscriptions poised to disrupt the traditional business model, it’s only natural for you to wonder if offering a subscription model can benefit your business.

Payment Features 61

Payment Features Payment Services Subscription Payment Methods 61

SaaStr

NOVEMBER 28, 2022

was pretty simplified, mostly made up of annual or monthly subscriptions. 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. Era 2, SaaS 2.0: Era 3, SaaS 3.0: Common SaaS strategies for 10x growth.

Scale 189

Scale Finance Sales Hiring Scaling 189

OPEXEngine

JANUARY 11, 2022

Consumption-based pricing is best used when you can accurately and easily break down your service offering into small, digestible units. Many companies in the technology industry are moving toward “pay for what you use” consumption-based pricing models. Four pricing models. Uncommitted contracts. Challenges and shifts.

Pricing 52

Pricing Payment Solutions Outsourced Development Compensation 52

SaaStr

OCTOBER 29, 2019

We’re going to talk about matching price to value, and I’m going to share some lessons from my time as both an operator and an investor. This is a mobile solution for SMB’s to send an invoice and get paid. This is an interesting study that was done by the folks from Price Intelligently. Hi, everybody.

Payments 100

Payments Pricing Compensation SaaS Payments 100

Clouded Judgement

APRIL 11, 2024

This has all resulted in the median stock price declining 5% YTD. For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs. I consider >120% best in class for companies selling to SMBs (like Bill.com). Are forward estimates “de-risked.”

Cloud 177

Cloud Software Azure AWS 177

SaaStr

APRIL 8, 2020

Click here for ChartMogul’s free-forever launch plan that will give SaaS businesses access to the world’s first subscription data platform so they can analyze and improve key metrics like MRR, churn and LTV. Profitwell’s Free Pricing and Retention Audits. Hiver’s Free Shared Inboxes for SMB.

Machine Learning 209

Machine Learning Artificial Intelligence SaaS Consulting 209

SaaStr

DECEMBER 27, 2020

Those of us who’ve been around a while think of New Relic as a freemium and almost SMB tool, but today 77% of their revenue comes from accounts greater than $100k. New consumption pricing model has increased revenue 15% where rolled out. Done right, this sort of anti-SaaS pricing model can lead to significantly more revenue.

Scale 285

Scale Outsourced Development SMB Cloud 285

Neil Patel

DECEMBER 8, 2020

Clockify – Best Reporting Features Time Doctor – Best for Employee Monitoring Toggl Track – Best for Holding Everyone Accountable TSheets – Best for GPS Monitoring Tick – Best for SMB Time Management. A lot of companies use time tracking software to streamline payroll and invoicing. Monitoring.

Payment Solutions 140

Payment Solutions Software Payment Methods Payments 140

Clouded Judgement

DECEMBER 21, 2023

This matters a lot more when stock prices are going down, and management teams often grant additional shares to make employees whole (thus increasing dilution even more) Net Revenue Retention High net revenue retention is the fourth aspect of a successful quarter, and one of my favorite metrics to evaluate in private SaaS companies.

Cloud 177

Cloud Software Benchmarks Retention 177

Clouded Judgement

MARCH 22, 2024

For SaaS businesses that target smaller SMB customer segments, gross retention is typically in the mid to low 80’s with net expansion in the ~105% range. But this is changing - many categories are becoming commoditized leading to massive pricing pressure. Buyers are also experimenting on vendors.

AI 183

AI Revenue Cloud Technical Advisors 183

SaaStr

DECEMBER 14, 2020

Folks churn out of their Verizon plan, their Netflix subscription, etc. In a low-end subscription model for a tool, not a solution (e.g., Churn is a good term for your SMB and freemium customers. semi-commodity storage, semi-commodity hosting, etc. the dynamics are similar. Like Verizon. 120%+ for your Larger Customers.

Churn 362

Churn Sales Hiring Systems Review B2C 362

SaaStock

JANUARY 25, 2019

Its focus is on helping companies handle financial routine and streamlining processes related to accounting, banks, stock, and electronic invoicing, among others. Omie main goal is to bridge the efficiency gap in Brazilian SMB, helping customers to be more prosperous. The tool supports multi-currency billing and electronic invoicing.

SaaS Payments 257

SaaS Payments Payment Solutions Payment Methods Payments 257

Clouded Judgement

SEPTEMBER 12, 2023

For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs. I consider >120% best in class for companies selling to SMBs (like Bill.com). To calculate implied ARR I take the subscription revenue in a quarter and multiply it by 4.

Cloud 169

Cloud Software Benchmarks Retention 169

SaaStr

FEBRUARY 9, 2024

From a Go-To-Market perspective, Zapier uses a hybrid model that involves a combination of freemium offerings, subscription plans, and partnerships. They had been building toward an SMB audience, so hiring 50 people in sales against a product that wasn’t ready for a specific audience would’ve been a mistake. At the same time?

Scale 244

Scale Sales Hiring Sales Marketing 244

OPEXEngine

MAY 18, 2021

SaaS metrics are viewed differently at different stages of growth and for different sales models, primarily whether a company is selling into an SMB or enterprise marketplace. ARR is an essential subscription metric that identifies the recurring revenue expected on an annual basis from the subscriber base. Usage Fee-Based ARR.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

ProfitWell

SEPTEMBER 3, 2019

“Close enough” is sufficient only in horseshoes and hand grenades; your pricing page is no exception. If your pricing page isn't perfectly designed to convert potential customers, all that effort you put into sales, marketing, and product development might as well be for naught. What is a pricing page?

Pricing 69

Pricing Scale Technical Review compliance 69

Clouded Judgement

APRIL 12, 2023

This matters a lot more when stock prices are going down, and management teams often grant additional shares to make employees whole (thus increasing dilution even more) Net Revenue Retention High net revenue retention is the fourth aspect of a successful quarter, and one of my favorite metrics to evaluate in private SaaS companies.

Cloud 161

Cloud Software Benchmarks Retention 161

SaaStr

NOVEMBER 2, 2019

How does Krish think about purely serving the SMB market? How does he think about the mortality rate of SMBs? How does Krish think your customer acquisition and GTM strategy has to change with the movement from SMB to enterprise? What does Krish mean when he says, “In SaaS, you either sell to one of 2 customer profiles”?

Scale 123

Scale SaaS Payments Sales Recruiting Payment Services 123

Clouded Judgement

JUNE 20, 2023

The market is clearly pricing in lower rates + reacceleration of growth. For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs. I consider >120% best in class for companies selling to SMBs (like Bill.com).

Cloud 161

Cloud Software Benchmarks Scale 161

Chart Mogul

MAY 21, 2024

For example, combining subscription billing data from Stripe and Chargebee, and customer data from Intercom and your own database. These tags can then be used by your whole team in Subscription Analytics, CRM or in any other tools which rely on ChartMogul data. Mark less valuable customers as Self-Service.

Headcount 52

Headcount SMB Sales Team Automation Subscription 52

Clouded Judgement

JUNE 2, 2023

It’s a bit of a swag as not all companies report ARR (and where they don’t I’m calculating ARR as quarterly subscription revenue x4). ” From Okta: “We're seeing increased macro headwinds on our business, most notably with new business across SMB and enterprise.

Cloud 130

Cloud Trends SMB Subscription 130

Clouded Judgement

DECEMBER 20, 2022

This matters a lot more when stock prices are going down, and management teams often grant additional shares to make employees whole (thus increasing dilution even more) Net Revenue Retention High net revenue retention is the fourth aspect of a successful quarter, and one of my favorite metrics to evaluate in private SaaS companies.

Cloud 130

Cloud Software Review Software Benchmarks 130

Clouded Judgement

JUNE 9, 2023

Quarterly Reports Summary Top 10 EV / NTM Revenue Multiples Top 10 Weekly Share Price Movement Update on Multiples SaaS businesses are generally valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months. Revenue multiples are a shorthand valuation framework.

Trends 130

Trends Cloud Azure AWS 130

OPEXEngine

JUNE 11, 2020

Pros and Cons: SaaS SMB vs. Enterprise Models. SaaS companies selling in the SMB market are structured operationally very differently from SaaS companies selling in the enterprise market. SaaS, Subscription, and On-Premise Software: Don’t Confuse Subscription with SaaS. Here’s a quick guide to the key concepts.

SMB 59

SMB SaaS Benchmarks Subscription 59

SaaStr

JANUARY 7, 2021

SaaStr 308: RevenueCat CEO Jacob Eiting on Managing Millions in Mobile Subscriptions While Growing 20% a Month. Most of us think a lot about standard B2B SaaS and Cloud subscriptions, but we are still new to the issues, challenges, and opportunities in mobile subscriptions. Romain Lapeyre is CEO of Gorgias.

Scale 229

Scale Sales Hiring Scaling B2B 229

Neil Patel

DECEMBER 23, 2020

HubSpot CRM – Best free marketing CRM Really Simple Systems – Best free sales CRM Agile CRM – Best free customer service CRM Flowlu – Best for SMB finance Apptivo – Best for basic business management. If you outgrow your free CRM software, is the next pricing tier still within budget?

Payment Solutions 139

Payment Solutions Software Review Software Payments 139

SaaStr

JANUARY 24, 2024

Scaling Enterprise vs. Mid-Market Sales: Key Takeaways from Calendly It’s a common blueprint to start with SMB and mid-market accounts as your ideal customers. As a subscription business, you should always be growing, but the rate of growth wasn’t where they wanted it to be. The result?

Scale 213

Scale Sales Hiring Scaling Revenue 213

Chart Mogul

APRIL 20, 2018

This week: How Blue Apron is struggling, how to think about category creation and practical advice for truly understanding who you're selling to in SMB. Subscriptions are reaching never-seen-before levels of scale. Is this the end of the subscription era? Category creation is about setting the price.

Subscription 45

Subscription Payment Features SaaS Scale 45

Neil Patel

DECEMBER 5, 2020

Phoneburner – Best for Remote Teams VanillaSoft – Best for Outbound Sales Voicent Cloud – Best Standalone Auto Dialer Software Mojo – Best for SMB Sales RingCentral – Best for Compliance Kixie – Best for Local Presence. Pricing for Phoneburner is not complicated. DNC compliance tools.

Software Review 143

Software Review Software Scale compliance 143

Payrix

MARCH 12, 2024

Andy also reflects on the complexities of addressing unintegrated customers, urging SaaS companies to prioritize consolidation and user experience enhancements over price. The mistake I find a lot of folks making is trying to compete on price. Let me see if I can lower your price.’ Let me see if I can lower your price.

Payments 100

Payments Embedded Payments Merchant Services SaaS Payments 100

SaaStr

JUNE 1, 2021

I’m going to skip by my life story, and how I grew up as a small child in India, and how the dusty streets influenced my take on unit economics, and SaaS subscription models. Do not…,” and the reason is no one hardly ever has succeeded in building a big business in SMB. ” “Yep, we need a price.”

Part-Time VPE 206

Part-Time VPE Technical Cofounder CTO Hire New CTO 206

OPEXEngine

NOVEMBER 17, 2020

Subscription companies have to have a policy about when customers who have not renewed their subscription contract are no longer existing customers, and if they do resubscribe, they are now new customers. For monthly subscriptions, it may be the day after the subscription expiration.

Systems Review 52

Systems Review Technical Review Payment Features Scale 52

User Pilot

JULY 18, 2023

TL;DR Customer churn is the rate at which users discontinue their subscription or stop using a particular product or service. Price increases. Here are other metrics subscription-based companies should track alongside churn: Customer retention rate. Monthly recurring revenue. Price increases: Price increases are tricky.

Churn 77

Churn Payments SaaS Payments Payment Solutions 77