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 216

Outsourcing Services Payments Merchant Services SaaS Payments 216

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 202

SaaS Payments Metrics Payments SMB 202

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 309

SaaS Payments Scale SMB PayPal 309

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 286

SaaS Payments Scale SMB Payment Solutions 286

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 235

Payment Solutions Point of Sale Payments SaaS Payments 235

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 243

Merchant Services Payment Methods SaaS Payments Payments 243

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.

Payment Solutions 314

Payment Solutions Payments SaaS Payments Payment Services 314

SaaStr

OCTOBER 22, 2021

Sometimes, the self-serve / PLG engine stalls out at a certain scale. 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.

Scale 295

Scale SaaS Payments SMB Payment Solutions 295

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. It’s a tough outcome for a team that is working hard to scale well into the nine figures of ARR. While these aren’t great metrics if Weave was enterprise, they are still solid for SMBs.

SaaS Payments 236

SaaS Payments Scale Payment Methods Payments 236

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 216

Payment Solutions Payments Travel Scale 216

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 301

Payments SaaS Payments SMB Payment Solutions 301

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

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 277

Payment Methods Payment Solutions Payments SMB 277

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 236

Scale Payments Payment Solutions Payment Services 236

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 181

Merchant Services SaaS Payments SMB Payment Solutions 181

SaaStr

DECEMBER 10, 2019

You don’t need to be a math whiz to see that means it started slow and then truly accelerated only once scale was hit. 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. Almost always. If you want to.

Payment Services 217

Payment Services Payments Payment Methods SMB 217

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. Schedule a demo to learn how we can help you scale across borders to go farther faster.

Pricing 135

Pricing Payment Solutions Payment Services SaaS Payments 135

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 228

Scale SaaS Payments Payments Payment Services 228

Casey Accidental

DECEMBER 11, 2023

In a previous post , I talked about how product work post-product/market fit shifts from zero to one innovation to features, growth, and scaling work. Format changes are usually only required around platform shifts already occurring or platform shifts a larger company is trying to drive. I have written more about platforms here.

Payments 113

Payments Scale Payment Solutions Technical Review 113

SaaStr

SEPTEMBER 26, 2019

What we learned from ’08-’09 in SaaS: First, SMB churn went through the roof — as SMBs went under much more quickly and often. As soon as the economy went south, SMBs started to simply go bankrupt and/or shut down. And even before they did, panic set in in businesses with no cash reserves. functioned.

SaaS Payments 274

SaaS Payments Sales Hiring Scale SMB 274

SaaStr

AUGUST 12, 2022

Jason recently opened up an AMA on Twitter Spaces to answer questions about scaling and VC funding. 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.

Scale 186

Scale SaaS Payments Scaling SaaS 186

SaaStr

MARCH 31, 2022

This episode is an excerpt from a session at SaaStr Scale. And if you also look at the platform as a service category, that’s also an additional $50 billion of spend, and that’s typically with those same vendors. Jessica Alexander, Senior Director Cloud Technology & OEM Partnerships, Crowdstrike. Rico Mallozzi, Sr.

Scale 194

Scale Marketplace as a Service Cloud SaaS Payments 194

SaaStock

JANUARY 25, 2019

ContaAzul is a business management platform for small businesses created in Brazil. Its focus is on helping companies handle financial routine and streamlining processes related to accounting, banks, stock, and electronic invoicing, among others. Vindi is a PCI-certified online payment platform for recurring billing.

SaaS Payments 257

SaaS Payments Payment Solutions Payment Methods Payments 257

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 . The following 4 metrics are critical to the valuation of a private SaaS business.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

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 56

SaaS Payments Payments Payment Services Scale 56

SaaStr

AUGUST 26, 2022

I just thought that if there was anybody left at the end of day two that had anything they wanted to talk about, scaling SaaS, fundraising, hiring, anything, and I could be helpful, we could do a little extra Q&A. Look at Snowflake and GitLab and ZoomInfo, growing almost 60% at a billion in revenue. I did a lot of slides already.

Sales Hiring 196

Sales Hiring Scale Sales Recruiting Scaling 196

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

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 206

Scale SMB Sales Hiring Payment Services 206

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 fact, it’s easy for businesses to get overwhelmed by metrics and not know which ones to prioritize. Hubspot Focused On LTV to Scale Its SaaS Company.

Scale 146

Scale Payment Methods Payments SaaS Payments 146

FastSpring

DECEMBER 7, 2023

But if you’re not dealing in mergers and acquisitions every day like Carl is, you might have a lot of questions about how to best position your business if you’re interested in selling. WP Engine, we’re the world’s most trusted platform for WordPress. And it’s easy from an integration standpoint.

Software Review 146

Software Review Technical Review Development Team Review Branding 146

CustomerSuccessBox

FEBRUARY 28, 2022

The net revenue retention rate which you may also state as the net retention rate in SaaS businesses is an indicator that depicts the profits and the revenue earned by the business. Ultimately, the purpose of generating revenue is what gets you in the business loop. Why is it important?

Retention 52

Retention SaaS Payments Payments Payment Methods 52

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. StoryDimensions - Capture, Develop and Deliver Customer Stories … at Scale. Account Based Selling.

Scale 111

Scale Payment Methods Payment Solutions Sales Recruiting 111

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 98

Churn Payments SaaS Payments Payment Solutions 98

User Pilot

JUNE 29, 2022

This will ultimately boost your revenue as customers will become loyal. Code-free and easy to integrate. With Baremetrics, you can easily access key financial metrics and analyze how different groups of customers contribute to the revenue. Geared for SMB. Cons: Many integrations make it complicated to manage.

SaaS Payments 98

SaaS Payments Software Review Payment Solutions Payment Methods 98

yoursales

JANUARY 29, 2021

Salesforce.com – The Customer Success Platform To Grow Your Business. Salesflare – Simple yet powerful CRM for small businesses selling B2B. Mimiran – More Leads and More Deals for SMB Services Business. Membrain - Complete Platform for Complex B2B Sales. Salesbox - #1 Sales Acceleration Platform.

Scale 104

Scale Payment Methods Payment Solutions Sales Recruiting 104

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

Tom Tunguz

JUNE 26, 2013

I count seven major categories of innovation to date: Math Based Currencies/Payment Networks - Bitcoin might be the most well-known and best publicized math-based currency, but there are a handful of others in the market, like OpenCoin and LiteCoin. This is a boon to merchants whose payment fees shrank.

Merchant Services 100

Merchant Services Payments Point of Sale Startup 100