SaaStr

NOVEMBER 19, 2020

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. So are you sure your trial needs to be so short? Subscriptions can fuel payments and merchant revenue.

Payments 344

Payments Merchant Services Payment Solutions Scale 344

SaaStr

DECEMBER 3, 2023

In particular: Hybrid SaaS with payments and fintech usually has far, far lower gross margins than pure software. See, e.g. Shopify, whose blended gross margins with payments even at its scale are still less than 50%. Non-Recurring Revenue Doesn’t Count, At Least Not as Much. Pass-Through Revenue Simply Doesn’t Count.

SaaS Payments 208

SaaS Payments Metrics Payments SMB 208

SaaStr

MARCH 25, 2021

It’s done it by going more upmarket, and better monetizing partners and services. Having said that, the average ACV here is $14,615 … so that’s at the high end of a traditional SMB spend, which probably accounts for the high NRR. Driving existing customer revenue up more than new logos.

Outsourcing Services 222

Outsourcing Services Payments Merchant Services SaaS Payments 222

SaaStr

APRIL 29, 2021

Shopify’s first quarter revenue: Q1 2021: $989 million Q1 2020: $470 million Q1 2019: $321 million Q1 2018: $214 million Q1 2017: $127 million Q1 2016: $73 million Q1 2015: $37 million Q1 2014: $19 million Q1 2013: $9 million. When you add in payments, i.e. merchant services, NRR for 2018+ is about 110%, based on the below new chart.

Merchant Services 245

Merchant Services Payment Methods SaaS Payments Payments 245

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. 39% of their revenues from software, and going down. Driving up ARPU at scale key to growth with SMBs.

Payment Solutions 242

Payment Solutions Point of Sale Payments SaaS Payments 242

SaaStr

APRIL 23, 2021

Now they’ve scaled to $200m+ ARR growing 38% selling just to 100,000+ SMBs, solving a hard problem (i.e., automating the back office and payments and billing for SMBs), and doing it with 120%+ NRR. 121% NRR from SMBs — up from 110% at IPO. Making more and more money on each payment. Pretty impressive.

Payment Solutions 323

Payment Solutions Payments SaaS Payments Payment Services 323

SaaStr

AUGUST 29, 2022

SMB SaaS has a lot going for it: – Millions of them – Short sales cycles – Easier compete. But, it's often hard to get to $100m ARR selling just to SMBs. sell just to SMBs pic.twitter.com/Po1I2aMaBK. So many VCs and others have gotten more and more excited about SMB SaaS. Millions and millions more.

SaaS Payments 318

SaaS Payments Scale SMB PayPal 318

SaaStr

AUGUST 24, 2022

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. Many SMB leaders have to get very, very good at outbound because of the limited deal sizes. 20% of new customers / locations come from referrals.

SaaS Payments 293

SaaS Payments Scale SMB Payment Solutions 293

SaaStr

AUGUST 17, 2021

They are at 2,000 customers, a stunning 40% revenue and 46% billings growth, at $700m in ARR. Network effects are real in Spend Management. Coupa isn’t as much a fintech as SMB players like Bill.com, but it’s getting there with Coupa Pay. This is a bigger task than SMB, but a huge market. And a few bonus notes: 6.

Payments 303

Payments SaaS Payments SMB Payment Solutions 303

SaaStr

OCTOBER 31, 2023

With nine figures in revenue, Ariel and SaaStr founder and CEO Jason Lemkin talk about all things Navan, rebranding when you have brand equity, building B2B software for people, pricing and business models, and much more. Before Navan, there were different apps for managing expenses, events and meetings, payments, etc.

Payment Solutions 223

Payment Solutions Payments Travel Scale 223

SaaStr

FEBRUARY 17, 2021

They want a slick site that does more, from eCommerce to payments to marketing and more. And SMBs are back in SaaS. That’s the power of recurring revenue. eCommerce and Business Tools Are Key Drivers to Accelerating Growth. Efficient at SMB marketing — an ~8 month CAC. But much lower in Payments.

Payment Methods 281

Payment Methods Payment Solutions Payments SMB 281

SaaStr

JULY 20, 2022

Weave started off as a dental ERP and comms platform (including VoIP / phone), and then expanded beyond that as it scaled. While these aren’t great metrics if Weave was enterprise, they are still solid for SMBs. Many SMB SaaS companies struggle to hit 100% NRR and 80% GRR. A fairly standard SMB price point.

SaaS Payments 244

SaaS Payments Scale Payment Methods Payments 244

SaaStr

OCTOBER 29, 2019

SaaS is about creating long-term value for your customer, and being compensated appropriately for that value as a business. Learn actionable monetization tips from a Product/Growth operator turned VC. This is a mobile solution for SMB’s to send an invoice and get paid. Want to see more content like this? Hi, everybody.

Payments 100

Payments Pricing Compensation SaaS Payments 100

SaaStr

OCTOBER 22, 2021

GRR of 86% and NRR of 119% are very impressive for SMBs … although they only count customers with 5+ seats. Still, 119% NRR from SMB is world-class even for 5+ seats accounts and sometime to strive for if you have similar sized customers. #4. But after adding more credit cards and payments, and coming out of Covid … boom!!

Scale 300

Scale SaaS Payments SMB Payment Solutions 300

wepay

AUGUST 5, 2020

Vagaro providing resources to reopening, physical changes, and safety measures to its customers for contactless payments, virtual check-in capabilities, revamped floor plans, and other necessary business changes. We also discussed the findings from our State of Small Business Payments 2020 survey. We surveyed 1,000 U.S.

Payment Methods 40

Payment Methods Payments Payment Solutions SMB 40

SaaStr

JANUARY 31, 2023

The SMB segment of Zoom has stopped growing, so going from ~0% growth to 7% growth actually might end up being huge. Merchant payments have become the bulk of not only its revenue, but importantly, have been growing twice as fast as SaaS revenues). Because with those apps, we see second-order revenue spread quickly.

Pricing 248

Pricing Merchant Services Payment Solutions Payments 248

Stax

DECEMBER 20, 2023

Although credit cards have been around since the 1950s, in recent years, they’ve started to dethrone cash from its position as king of payment methods. With a whopping 84% of American adults owning at least one credit card (the average is 3 credit card accounts per person), card payments reached $9.43 trillion in 2021.

Payment Services 88

Payment Services Merchant Services Payment Methods Stax 88

SaaStr

MAY 25, 2022

If Momentive / SurveyMonkey had stayed 100% self-serve and low end, it likely wouldn’t be growing much at all, with self-serve revenue now only growing 7%. Far forward to today, 1/3 of its revenue is sales-driven, but it’s the core growth driver, up 35%. #2. It’s not always best to force annual payments.

Scale 244

Scale Payments Payment Solutions Payment Services 244

SaaStr

DECEMBER 10, 2019

110% Net Revenue Retention and 8 2% Customer Retention from 81,000+ SMB Customers. Bill.com sells to very small businesses that do churn at a higher rate. But that also proves that’s no excuse to drop below 100%+ net revenue retention. Bill.com manages 110% Net Revenue Retention on 82% Customer / Logo retention.

Payment Services 213

Payment Services Payments Payment Methods SMB 213

SaaStr

MAY 10, 2021

Fast forward to today, and we can add an important nuance to that: a second core product not only helps you grow faster at scale (a bigger TAM), but it drives up NRR and more revenue from your existing customers. Pretty good for SMB SaaS. Box at $800m ARR is about 30% SMB / 70% enterprise, the inverse of Shopify.

Merchant Services 179

Merchant Services SaaS Payments SMB Payment Solutions 179

Tom Tunguz

APRIL 12, 2017

SMB to mid-market to enterprise or straight to enterprise?” Startups that initially target small to medium businesses benefit from several key advantages. First, these businesses are faster to revenue. In exchange for these benefits, SMB startups cede the enterprise market early on. What does the data say?

SMB 104

SMB Enterprise SaaS Payments Sales Hiring 104

SaaStr

MAY 26, 2019

Its growth has been more slow-and-steady than traditional rocketship, crossing $69m in Q4 revenues (let’s call that $280m+ in ARR, so soon to be $300m) — growing 17% a year by revenue, and 10% a year by customer count. That is a similar revenue growth rate to Salesforce’s core CRM product. A few learnings: 1.

Scale 237

Scale SaaS Payments Payments Payment Services 237

Andreessen Horowitz

APRIL 29, 2024

acceptable funding parameters and risk metrics) by using upfront, non-performance driven data such as revenue, time in business, and minimum FICO. Loan servicers are responsible for collections, where they auto debit gross principal and interest payments from a bank account and wire them to the lender.

Payment Services 92

Payment Services Payment Solutions Development Team Review Outsourcing Services 92

FastSpring

SEPTEMBER 16, 2022

When FastSpring’s Chief Product Officer Kurt Smith worked with growth-stage to Fortune 100 companies at Accel-KKR, he consistently saw pricing as one of the most essential growth levers they employed to meet their next revenue goal. How FastSpring’s platform allows companies to test their pricing (2 minutes): Full Videos.

Pricing 118

Pricing Payment Solutions Payment Services SaaS Payments 118

Chart Mogul

AUGUST 15, 2019

Revenue-based financing is quickly becoming a popular way for startups to raise funds without sacrificing equity. You may have heard of Revenue-based financing (RBF), venture debt or hybrid structures blending a revenue or profit share concept with an equity ownership stake. A high-level look at Revenue-based financing (RBF).

Finance 85

Finance Payments Revenue Payment Solutions 85

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 . SaaS Metric #1 – Annual Recurring Revenue (ARR). Almost all revenue is from new contracts.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

Intercom, Inc.

JANUARY 23, 2020

Integrations with other products can add valuable functionality making your own product stickier. Top companies have responded to shifting dynamics, moving from product to platform. Take HubSpot, for example: over the last five years, they’ve grown their app marketplace from 40 to 350 integrations. They email.

Underperforming Technical Team 183

Underperforming Technical Team Scale Payments Payment Services 183

Chart Mogul

AUGUST 15, 2019

Revenue-based financing is quickly becoming a popular way for startups to raise funds without sacrificing equity. You may have heard of Revenue-based financing (RBF), venture debt or hybrid structures blending a revenue or profit share concept with an equity ownership stake. A high-level look at Revenue-based financing (RBF).

Finance 52

Finance Payments Revenue Payment Solutions 52

Stax

NOVEMBER 20, 2023

TL;DR Founded by American Express in 2010, Small Business Saturday encourages consumers to shop at local small businesses. Participating in Small Business Saturday can help SMBs boost revenue, foster customer loyalty, and strengthen the local economy. The 13th annual event is set for November 25th this year.

Payment Methods 88

Payment Methods Merchant Services Stax Payment Services 88

FastSpring

SEPTEMBER 2, 2020

Lifetime Value (LTV) is a metric that shows the average revenue generated by a customer before they churn. By calculating your customer’s LTV, you can get a better idea of how much each new customer will add to your overall revenue and how much you can justify spending on customer acquisition. In doing so, their LTV tripled.

Scale 135

Scale Payment Methods Payments SaaS Payments 135

User Pilot

JULY 18, 2023

Types of churn rates you should calculate: customer churn rate, revenue churn rate , and involuntary churn rate. To calculate the revenue churn rate, divide the net revenue lost from existing customers in a given period by the total revenue at the beginning of the period. Monthly recurring revenue.

Churn 83

Churn Payments SaaS Payments Payment Solutions 83

Point Nine Land

JANUARY 2, 2019

Don’t hesitate to add in the comment section the platforms I have missed! But many features can be added: user reviews, user ratings, app recommendation, payment integration, co-marketing opportunities, deep product integration, developer portal, etc. a security audit). a security audit). And I don’t think it will stop.

Payment Methods 66

Payment Methods Payment Solutions SaaS Payments Payments 66

Point Nine Land

JUNE 18, 2023

However, even though everyone is now aware of cohort analyses, and every major web, product, or revenue analytics product offers features for cohort analysis, it still requires time to fully comprehend everything you need to know about cohort analyses and, perhaps more importantly, to utilize them to obtain real, actionable insights.

SaaS Payments 128

SaaS Payments Payment Services Payments SaaS 128

yoursales

JANUARY 28, 2022

With the launch of the Pipedrive Marketplace a very wide range of third party apps & integrations. Scroll to the right in the table below and filter for integrations to find what works for you. Drive Revenue. Terminus - Account-Based Marketing Platform for Quality Growth. Account Based Selling. Grow Your Pipeline.

Scale 111

Scale Payment Methods Payment Solutions Sales Recruiting 111

SaaStr

JUNE 13, 2019

To give you a sense of the distribution, by ARR, of the 600 or so respondents, about two-thirds of them are 5 million in ARR or under, but we had five or six different companies that were publicly traded well north of 100 million, who are using free trial in order to continue to grow their businesses. What does this mean?

Scale 211

Scale SMB Sales Hiring Payment Services 211

SaaStr

AUGUST 12, 2022

Have revenue, but early, so like 50K ARR after two months of charging for a product. People were so excited about SaaS when public companies were trading at 30 to 50 X revenue that they would want to take that meeting. Now, revenue’s coming in looking good. Last year offered checks of between five and 10, early.

Scale 198

Scale SaaS Payments Scaling SaaS 198

SaaStr

SEPTEMBER 9, 2021

Bill.com has become an SMB powerhouse, with 120,000+ customers and a stunning $25B+ market cap. Bill.com had to develop a network that today has millions on vendors processing bills and payments on it. So they let folks use the platform the way they wanted, from paper checks to fax and more. #2. But it paid off.

SaaS Payments 57

SaaS Payments Payments Payment Services Scale 57