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 260

Payment Methods Payment Solutions Payments SMB 260

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 108

Outsourcing Services SMB Acquisition Scale 108

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 60

Payment Features Payment Services Subscription Payment Methods 60

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 219

Payment Solutions Point of Sale Payments SaaS Payments 219

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 199

SMB SaaS Subscription Payment Features 199

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. So it’s doing what Wall Street wants today. But is Duolingo SaaS? Well, it’s SaaS-ish. So at a minimum, it’s a good one to learn from, especially in this PLG and freemium world.

Scale 285

Scale B2C SMB B2B 285

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

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

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: New service offerings.

Scale 183

Scale Finance Sales Hiring Scaling 183

Clouded Judgement

APRIL 11, 2024

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 Azure AWS 169

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

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. As more and more SaaS apps add a payments element, that payments element can really scale over time. You can be both SMB and enteprise consistently.

Payments 324

Payments Merchant Services Payment Solutions Scale 324

Tom Tunguz

JANUARY 26, 2021

Then, consumer subscription businesses began pitching using ARR. After all, there’s not much difference between an SMB paying monthly and a consumer paying monthly.

SMB 270

SMB Trends Startup Subscription 270

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. Hiver’s Free Shared Inboxes for SMB. What are they all about? What are they all about?

Machine Learning 209

Machine Learning Artificial Intelligence SaaS Consulting 209

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

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

SaaStr

FEBRUARY 14, 2023

Net Dollar Retention Shows SaaS’s Best Qualities NDR encapsulates SaaS revenues’ best qualities in one metric: the subscription-based model. For SMB-facing companies, over 110% should be your goal. It’s critical to show investors that you’re bucking the trend of many companies today that generate less demand and aren’t hitting numbers.

Metrics 193

Metrics SaaS Marketing SMB 193

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. Let’s take a look at Zoom. Zoom is even crazier now of course, but Zoom was growing > 100% at $500m in ARR, in an already well-established space.

Pricing 208

Pricing Payment Solutions Scale SaaS Payments 208

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

BrightBack

APRIL 6, 2020

The subscription industry is facing intense change as the landscape matures and companies race to stop customer churn related to the Covid-19 pandemic. The subscription industry is entering a retention-led phase of growth. The subscription industry is entering a retention-led phase of growth.

Subscription 59

Subscription Payment Features Retention Payment Methods 59

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

Sales Hacker

AUGUST 26, 2021

The industry ranges are around six to nine months for MM/Enterprise sales and three to five months for SMB sales businesses. Bookings vs. invoices. As a rep, a comp plan based on bookings is much more beneficial to you than one based on invoices. to choose invoices over bookings, but as a rep, bookings keep things much simpler.

Software Review 96

Software Review Compensation Payment Features Underperforming Technical Team 96

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. In New Relic’s case, moving from subscription to consumption based usage has increased net revenue 15%. The multiples just don’t support it.

Scale 281

Scale Outsourced Development SMB Cloud 281

Clouded Judgement

DECEMBER 21, 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 177

Cloud Software Benchmarks Retention 177

SaaStr

APRIL 14, 2023

Enterprise will likely have a different problem set vs. an SMB. Many customers in SE Asia are budget-based versus subscription-based. Mistake #3: Misunderstanding The Needs Of Your Geographic Market Founders are always looking to resolve a key burning issue or problem set. SE Asia, China, and other places.

Development Team Review 202

Development Team Review Technical Review Underperforming Technical Team SMB 202

SaaStr

APRIL 28, 2019

All the great SaaS companies IPO’ing now have strong revenue retention, whether SMB or enterprise focused. Revenue Retention / Net Negative Churn of 143%. A continued them of our 5 Interesting Learnings Series. Not burning that much cash. Yes, Slack has not been as efficient as Zoom. Again, having a viral app helps a lot here.

Scale 272

Scale Venture Capital SMB Enterprise 272

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

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 241

Scale Sales Hiring Sales Marketing 241

SaaStr

JUNE 27, 2019

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. This removes friction from the sales process, leading to a higher and faster close rate. Let’s take a look at Zoom. Zoom does not play games.

Pricing 176

Pricing SaaS Payments Payment Solutions Payment Services 176

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

Clouded Judgement

JUNE 9, 2023

Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4). Companies that do not disclose subscription rev have been left out of the analysis and are listed as NA. Net new ARR is simply the ARR of the current quarter, minus the ARR of the previous quarter.

Trends 130

Trends Cloud Azure AWS 130

OPEXEngine

JUNE 11, 2020

Sometimes companies only include recurring revenues when they talk about bookings or billings, but they also sell Professional Services (and must book and bill them somehow). Pros and Cons: SaaS SMB vs. Enterprise Models. SaaS, Subscription, and On-Premise Software: Don’t Confuse Subscription with SaaS.

SMB 59

SMB SaaS Benchmarks Subscription 59

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

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 125

Scale SaaS Payments Sales Recruiting Payment Services 125

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.

Scale 208

Scale Sales Hiring Scaling Revenue 208

Clouded Judgement

APRIL 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 161

Cloud Software Benchmarks Retention 161

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