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5 Interesting Learnings From Bill at $1.2 Billion in ARR

SaaStr

Well, fast forward to today and it’s truly an SMB powerhouse. How is SMB SaaS doing today? Both Bill and Shopifty have morphed over the years from almost pure SaaS companies to payments platforms built on top of a SaaS core. The rest of the growth is from its Divvy platform, which is bought in 2021 for $2.5

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What is a Payment Management System?

Stax

SMB owners wear many hats, managing everything from staff to sales. Adding to the already tough job of managing a small or medium business is the complex task of understanding how payment processing works, including managing the fees, equipment, accounts payable and more.

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The Challenge with SMB SaaS: High Growth Can Only Mask High Churn For Just So Long

SaaStr

So in theory, SMB SaaS is better than enterprise, at least 9 times out of 10: Deals close much faster. Don’t need as much sales experience on sales team. SMBs often force you to build a better product, as they lack a deployment and IT team. SMBs go out of business, and quickly. Endemic churn.

SMB 355
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Forecasting Fintech’s Future and Keeping Culture Alive: A Q&A with the CEOs of BILL and Mercury

Andreessen Horowitz

Whether it’s creating better tools to write code and test code, better tools for customers to engage with reps, better tools for sales teams to engage with their prospects, all those things are happening inside of Bill. Alex: Let’s dive into your business models. GenAI comes in to make employees efficient.

Payments 108
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5 Interesting Learnings From Shopify. At $3+ Billion in ARR.

SaaStr

But, there are still many interesting things we can learn from Shopify, especially since it sells to so many SMBs, has been late to go upmarket, and combines a payments/fintech element with pure SaaS. Sales might want a tighter “gate” to convert to paid. Subscriptions can fuel payments and merchant revenue.

Payments 340
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Most SaaS Metrics Really Only Work if You Have 75%+ Gross Margins and 100%+ NRR

SaaStr

CAC of < 12 months is Good-to-Great Paying sales reps 25%-30% of what they close is Good A burn ratio of 1 or less is Good These metrics do sort of work, if you have some capital to spend (i.e., In particular: Hybrid SaaS with payments and fintech usually has far, far lower gross margins than pure software. It depends.

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5 Interesting Learnings from Toast at Almost $800,000,000 in ARR

SaaStr

Driving up sales rep efficiency is key to driving up margins. SMB sales (most of Toast) is very tough to do without a highly efficient and effective sales force. At least 20% of your customers from referrals and second-order revenue. #4. 20% of new customers / locations come from referrals.