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 256

Payment Solutions Point of Sale Payments SaaS Payments 256

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. They have almost 40 million free users to get to their scale. #2. So it’s doing what Wall Street wants today. But is Duolingo SaaS? Well, it’s SaaS-ish. 5 Interesting Learnings: #1.

Scale 299

Scale B2C SMB B2B 299

Tom Tunguz

AUGUST 2, 2016

Channel distribution represents one of the biggest and most important changes in customers acquisition for SMB SaaS startups in quite a while. One of the most interesting examples is Microsoft’s Office 365 SMB business. It’s the most successful SMB SaaS acquisition channel ever built. by Thomas Hansen.

Outsourcing Services 107

Outsourcing Services SMB Acquisition Scale 107

SaaStr

NOVEMBER 19, 2020

Subscriptions can fuel payments and merchant revenue. As more and more SaaS apps add a payments element, that payments element can really scale over time. You don’t have to leave your SMBs behind as you go upmarket. You don’t have to leave your SMBs behind as you go upmarket.

Payments 357

Payments Merchant Services Payment Solutions Scale 357

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. GC thinks about building out your Go-To-Market team in 3 ways: Short vs. long-term needs Product maturity Experimental vs. scale Short-term vs. long-term needs. Experimental vs. Scale.

Scale 279

Scale Sales Hiring Sales Marketing 279

Andreessen Horowitz

APRIL 23, 2024

They also talked about the difficulties — and potential advantages — of selling into small businesses, taking alternative approaches to interviewing candidates, and the importance of keeping culture a vital part of a company as it scales. Both of you sell into SMBs, which is a notoriously difficult segment.

Payments 96

Payments Forecasting Payment Services Payment Solutions 96

SaaStr

FEBRUARY 17, 2021

While their core web site “Creative Subscriptions” are growing at a still impressive 23% year-over-year, their Business Solutions segment with ecommerce and more are growing 60% year-over-year at $200m in ARR. Efficient at SMB marketing — an ~8 month CAC. Efficient at SMB marketing — an ~8 month CAC.

Payment Methods 285

Payment Methods Payment Solutions Payments SMB 285

SaaStr

MAY 8, 2021

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. Both it and Wix are a bit murky on customer count vs “subscriptions”, but those are the data we have. More here. More here.

SMB 214

SMB SaaS Subscription Payment Features 214

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 27, 2020

But New Relic has continued to scale, crossing $650,000,000 in ARR (or so) and a $4B market cap. 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. It’s the secret to scaling effectively.

Scale 318

Scale Outsourced Development SMB Cloud 318

Tom Tunguz

SEPTEMBER 17, 2012

SMB SaaS companies cannot afford to pay for distribution. At 2 to 4% conversion to paid rates and $5 to $10 monthly subscription fees, the breakeven CPC for these products on search is $0.40. The most successful SMB SaaS companies (Zendesk, Expensify, Square) build communities to drive distribution.

SMB 100

SMB SaaS Branding Subscription 100

Tom Tunguz

JANUARY 26, 2021

They argue that though customers' usage wasn’t predictable on a small scale, over a large enough customer base, customer behavior is similarly predictable to contracted spend. Then, consumer subscription businesses began pitching using ARR.

SMB 278

SMB Trends Startup Subscription 278

Payrix

MAY 14, 2024

Before joining Worldpay for Platforms, he was CRO at Chargebee, a subscription revenue management platform that manages billing subscriptions and payments for companies throughout the world. During his tenure, Chargebee experienced high growth, scaling from processing about $3 billion in revenue to $13-14 billion.

Payments 147

Payments Payment Services Payment Solutions SaaS Payments 147

SaaStr

JULY 14, 2020

It may be the most successful SMB-focused app of our current generation. If they churn at the end of a yearly subscription, or 6 months into a monthly one, they’re still gone. At scale, even small pricing changes can have a big impact. Let’s take a look at Zoom. But that’s an illusion. It’s your job to fight to keep them. __.

Pricing 241

Pricing Payment Solutions Scale SaaS Payments 241

SaaStr

MARCH 31, 2022

This episode is an excerpt from a session at SaaStr Scale. million subscriptions transacted and Google’s marketplace has seen 3X growth in SaaS sales. So I think just opening your aperture when you’re thinking about marketplace, not assuming it’s just a small commercial SMB market sales. Rico Mallozzi, Sr.

Scale 222

Scale Marketplace as a Service Cloud SaaS Payments 222

Tom Tunguz

APRIL 25, 2012

On first glance, SMB SaaS companies, those who sell Software-as-a-Service to small to medium businesses, may seem like any other software company. SMB SaaS companies sell to a radically different market than enterprise software companies. On the other hand, SMB SaaS companies sell to firms with 10 employees and $400k in annual payroll.

SMB 100

SMB Scale SaaS compliance 100

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

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. Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4).

AI 183

AI Revenue Cloud Technical Advisors 183

SaaStr

JANUARY 7, 2021

Whether it was our interview with Podium’s Eric Rea on how he scaled with a team outside the Bay Area before it was really considered an option, or TripAction’s Megan Eisenberg on how to prioritize trade-offs in marketing without sacrificing pipeline, we’ve covered the gambit of relevant topics throughout the year. .

Scale 262

Scale Sales Hiring Scaling B2B 262

Clouded Judgement

APRIL 11, 2024

As a public company with significant scale, it’s hard to grow quickly if you have to rely solely on new customers for that growth. For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs.

Cloud 177

Cloud Software Azure AWS 177

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. Growth Stage – Scaling the Business, and . Obviously, subscription revenue growth rates are valued differently at different sizes.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

SaaStr

APRIL 28, 2019

As part of our new 5 Interesting Learnings series, here are a few: Freemium continues to scale for Slack, but now more as a lead gen tool. All the great SaaS companies IPO’ing now have strong revenue retention, whether SMB or enterprise focused. Many folks think that Freemium has a natural ceiling, and perhaps sometimes it does.

Scale 279

Scale Venture Capital SMB Enterprise 279

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? Yes, it does not scale, but the beauty is the product. Does one have to move to enterprise?

Scale 125

Scale SaaS Payments Sales Recruiting Payment Services 125

Clouded Judgement

DECEMBER 21, 2023

As a public company with significant scale, it’s hard to grow quickly if you have to rely solely on new customers for that growth. For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs.

Cloud 177

Cloud Software Benchmarks Retention 177

Clouded Judgement

SEPTEMBER 12, 2023

As a public company with significant scale, it’s hard to grow quickly if you have to rely solely on new customers for that growth. For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs.

Cloud 169

Cloud Software Benchmarks Retention 169

Clouded Judgement

APRIL 12, 2023

As a public company with significant scale, it’s hard to grow quickly if you have to rely solely on new customers for that growth. For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs.

Cloud 161

Cloud Software Benchmarks Retention 161

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? This week’s top reads. Kyle Poyar, OpenView Partners.

Subscription 45

Subscription Payment Features SaaS Scale 45

Point Nine Land

OCTOBER 8, 2021

At the same time, the industry is known for delays in projects and in payments, and small companies often struggle with cash management as they deal with multiple projects at the same time, relying mainly on excel and word to issue budgets and invoices, as well as manage their receivables across several projects.

Technical Cofounder 52

Technical Cofounder Construction Payment Solutions SaaS Payments 52

FastSpring

SEPTEMBER 2, 2020

When you’re trying to decide how to scale your business and how to calculate profits, there are tons of metrics out there you can use. In this article, you’ll learn all about LTV, why it’s important, how other companies have used it to scale, and finally—how to calculate your company’s LTV.

Scale 146

Scale Payment Methods Payments SaaS Payments 146

Clouded Judgement

JUNE 20, 2023

As a public company with significant scale, it’s hard to grow quickly if you have to rely solely on new customers for that growth. For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs.

Cloud 161

Cloud Software Benchmarks Scale 161

Clouded Judgement

DECEMBER 20, 2022

As a public company with significant scale, it’s hard to grow quickly if you have to rely solely on new customers for that growth. For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs.

Cloud 130

Cloud Software Review Software Benchmarks 130

Stax

DECEMBER 20, 2023

Since we’ve spoken a lot about credit card processing before, today we’ll take a look at how to find the best credit card processor for your SMB in 2024. Since the big players in the landscape generally all offer a robust set of services, data shows that most SMBs are satisfied with their payment processors and aren’t likely to switch.

Payment Services 88

Payment Services Merchant Services Payment Methods Stax 88

OPEXEngine

NOVEMBER 17, 2020

As a SaaS company scales, your CAC components will change. 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. But this company had more of an enterprise sales model.

Systems Review 52

Systems Review Technical Review Payment Features Scale 52

SaaStr

MARCH 20, 2020

318: The first step in success with SMB clients is to recognize that it’s not a one size fits all scenario. Companies need a specialized approach for SMB accounts, different than the tactics used for Enterprise. This episode is sponsored by TaxJar. Because at a startup, you figure out how to be scrappy and get things done.

SMB 175

SMB Scale Startup Marketplace as a Service 175

Intercom, Inc.

JULY 29, 2021

Fortunately, Mark had quite a bit of experience working and scaling teams in demanding, hypergrowth environments. SaaS is the subscription business. This is Scale , Intercom’s podcast series on driving business growth through customer relationships. Scaling in the midst of a global pandemic.

Sales Hiring 223

Sales Hiring Scale Sales Recruiting Underperforming Technical Team 223

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. Here are other metrics subscription-based companies should track alongside churn: Customer retention rate. Monthly recurring revenue. Poor onboarding. Bad customer service. Weak customer relationships.

Churn 86

Churn Payments SaaS Payments Payment Solutions 86

SaaSX

FEBRUARY 14, 2021

It may be that they just can’t sign up online because they need to generate a PO or receive an invoice to pay. I am reminded of Hubspot’s free online website grader tool that attracted hundreds of thousands of SMB marketers into their subscriber base before they had an online purchase path. Product-led” isn’t all-or-nothing.

Scale 59

Scale Payment Features SMB Acquisition 59