Clouded Judgement

MARCH 22, 2024

Subscribe now ARR (Annual Recurring Revenue) vs ERR (Experimental Runrate Revenue) ARR (Annual Recurring Revenue) is one of the most popular SaaS (Non-GAAP) metrics. Many investors laugh (and some rightly so) at the fact that software companies’ valuations are often described as a multiple of revenue.

AI 183

AI Revenue Cloud Technical Advisors 183

SaaStr

JUNE 8, 2024

It’s now growing < 10% A year even with these billion+ additional revenue streams. The exact price seems like a big deal at the time, and it is, and matters from the perspective of cash, dilution, etc. But in the end price probably matters far more than if the acquired company has a big, material outcome at scale.

Acquisition 224

Acquisition Pricing Scaling Revenue 224

SaaStr

JULY 13, 2022

Co-founder and CEO of Insider , Hande Cilingir, talks about what it takes to write a successful revenue growth story. She draws from personal experience scaling a global product company to $1B and shares common mistakes. The establishment of the enablement function is vital in scaling a business.

Scale 218

Scale Sales Hiring Revenue Marketplace as a Service 218

FastSpring

SEPTEMBER 16, 2022

But what about pricing? 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. Why You Shouldn’t Trust How Your Competitor’s Price.

Pricing 135

Pricing Payment Solutions Payment Services SaaS Payments 135

Predictable Revenue

JUNE 10, 2021

Ajit is the author of Price To Scale and is a SaaS Product Marketing veteran who has helped firms such as Narvar, Medallia, Helpshift, and Feedzai differentiate their products, grow revenue, and win. The post How to Price your SaaS Product appeared first on Predictable Revenue.

Pricing 165

Pricing SaaS Scaling Product Marketing 165

Andreessen Horowitz

JUNE 6, 2024

A strong multiproduct strategy is a cornerstone of a credible growth story for any scaling B2B company. This is why considering pricing and packaging ahead of time not only becomes a competitive advantage, but a necessity. The fundamental pricing processes still apply when you’re launching a new product.

Pricing 79

Pricing Scale Generative AI Customer Support 79

SaaStr

MAY 15, 2024

So with public SaaS companies continuing to grow, but revenue multiples often at relative lows, it can make sense in some cases to “go private”, invest in more growth for a few years, and try to IPO again down the road. Now that may sound like a lot, and it is a lot, but less so a multiple of revenue and ARR.

Scaling 233

Scaling Subscription Payment Features Pricing 233

SaaStr

MAY 27, 2022

On average, you got a 33%+ boost in revenue when you hired your first VP of Sales. Hire a great VP of Sales, and revenue goes up. 59% of you have raised prices this year. I think most of us have found our pricing is more elastic than we thought. In the scaling phase, I vote for leaving existing customers be. #9.

Sales Hiring 285

Sales Hiring Pricing Scale Interviewing 285

SaaStr

OCTOBER 11, 2023

Monday has gone from $7m in 2017 to over $700m in revenue today, showcasing the sheer power of compounding revenue. Eran Zimman, monday.com’s co-founder and co-CEO, shares his secrets to scaling and growth in an unpredictable market. Big Brain was an internal tool to track revenue, marketing expenses, and usage of the product.

Scale 161

Scale Sales Hiring Scaling Banking 161

SaaStr

NOVEMBER 28, 2022

These two departments are a SaaS company’s most important; without their alignment, there is no growth or scale. 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:

Scale 200

Scale Finance Sales Hiring Scaling 200

SaaStr

OCTOBER 25, 2021

Q: What billing or pricing tactic have you found in the end just wasn’t worth it? “Unless your product has a huge TAM to cast your net in, no-touch onboarding, and an obvious first “wow” moment you’re trying to reach, free trials and/or freemium pricing does not work well.” Jason, ed. : Jason, ed. :

Pricing 284

Pricing Scale Enterprise Onboarding 284

SaaStr

DECEMBER 17, 2021

Pricing is one of the most challenging elements to get right for SaaS companies. How much should you charge, and what pricing model works best? In an era of empowered buyers, vendors should take care to remove obstacles from the pricing process or risk losing the customer to a competitor.

Pricing 205

Pricing Scale Retention AI 205

SaaStr

APRIL 17, 2024

But they are ar $780,000,000+ in ARR, with an 86 NPS and strong revenue growth at 29% overall and 49% in subscriptions (yes, it’s confusing). New Customers Still Growing 22% at Scale. For me, Net New Customer Count has become the metric I obsess the most about at scale. 68% of Revenue in U.S.,

Scale 226

Scale Pricing Scaling Cloud 226

SaaStr

APRIL 19, 2024

EchoSign, which Adobe bought, had $12M in ARR, growing 100%, with 120% revenue retention and cash flow positive. Today that would be a dream, but in 2011, people didn’t understand the metrics around recurring revenue businesses, so investors weren’t sure it was a good business. So, what does it take to get to a $100M outcome?

Engineering 243

Engineering Business Model Pricing Scaling 243

SaaStr

NOVEMBER 25, 2022

Scale-ups are exciting. Scaling to satisfy customers’ demands depends on innovation and foresight combined with enterprise-ready technology and the right partners. On top of considerable dedication, creating a scale-up requires a functional edge—a unique and unreplicable capability compared to the players in the industry.

Scale 222

Scale Scaling Marketplace as a Service Entrepreneurship 222

SaaStr

JANUARY 24, 2023

As SaaS founders are looking to scale and raise funding, it can be confusing and stressful to navigate in the uncertain market of the past few years. In the SaaS space, revenue growth was the king of metrics for many years, but that has changed. As companies scale, they will want to keep in mind that momentum will change over time.

Scale 222

Scale Scaling Software Review Operational efficiency. 222

Tom Tunguz

AUGUST 28, 2021

Should you price your SaaS per seat or per use? The first thing to state is that massive companies have been built using both pricing structures: Salesforce and Adobe bill per seat while Snowflake and Twilio charge per use. When to use per seat pricing. Would they switch if the pricing weren’t predictable?

Pricing 266

Pricing Strategy Startup Scale 266

SaaStr

MARCH 27, 2024

Revenue Growth is Up Just 24%. HubSpot’s revenue growth of 24% (21% in constant currency) is basically equal to its net new customer count. Despite raising prices and selling more products, HubSpot ACV is basically flat at $11,365. Clearly, even SMBs are working to moderate spend, even as vendors increase pricing.

Scale 239

Scale Cloud Scaling Pricing 239

OpenView Labs

FEBRUARY 9, 2021

This is why we’re seeing more and more SaaS companies—Datadog, Twilio, AWS, Snowflake, and Stripe, to name a few—find success with product led growth paired with usage-based pricing. Usage-based pricing will be the key to successful monetization in the future.”. Usage-based pricing is in all layers of the tech stack.

Scale 98

Scale Pricing Scaling AWS 98

SaaStr

MARCH 9, 2022

During his SaaStr Annual presentation, Tom Clayton, CRO of Bill.com, shared his insights and advice for growing revenue streams to maximize business success. . Pursue Diverse Revenue Models. Sometimes, it takes innovative thinking to pull more revenue out of a current customer base or business model. The Five Key Growth Levers.

Revenue 241

Revenue Sales Hiring Leadership Scale 241

SaaStr

FEBRUARY 15, 2022

But maybe not while you are scaling, you can often afford to invest more if you have funding. This is pretty much where most of us end up at, at scale. But much as we discussed that you can use salespeople at a $99 price point … if you can sell at $99 … you can manage that $99 customer to success, one way or another.

Scale 246

Scale Customer Success Sales Hiring Scaling 246

Intercom, Inc.

SEPTEMBER 10, 2020

Applying data and science to scaling has become easier because of the shift that’s happened in the software industry over the past 15 years, from outside sales to inside sales. A data-driven framework for scaling. Mark’s latest ebook, The Science of Scaling , outlines a precise framework for success.

Scale 226

Scale Scaling Sales Recruiting Sales Hiring 226

SaaStr

MAY 17, 2021

We overindex on the inside information, and how quickly we assume they could scale up … and because of that, we let their other weaknesses slide in candidates we otherwise wouldn’t hire. Sales reps don’t have to scale in a day. More here: How to Close More Revenue Today — With The Leads You Already Have. Not Training Reps.

Scale 230

Scale Sales Hiring Scaling Sales 230

Tom Tunguz

MARCH 11, 2024

We do expect a number of our large customers are going to adopt Iceberg formats and move their data out of Snowflake where we lose that storage revenue and also the compute revenue associated with moving that data into Snowflake. As a reminder, about 10% to 11% of our overall revenue is associated with storage.

AI 276

AI Engineering Cloud Trends 276

SaaStr

DECEMBER 15, 2022

So we’ve got all the amazing sessions from 2022 SaaStr Scale up on YouTube here ! “3 Lessons from Building a Marketing Engine to Grow Pipeline from Millions to Billions with Samsara’s CMO” A great session on marketing at scale, across multiple products — with ton of great Q&A at the end. #2.

Scale 182

Scale Scaling Engineering Acquisition 182

Andreessen Horowitz

DECEMBER 8, 2023

Introducing usage-based pricing requires a fundamental mindset shift away from securing cash up front and toward providing value so your customers consume more. But using overages to secure your own revenue streams as a vendor comes at a cost for your customers. Think about it: you’re penalizing your customers for buying more.

Pricing 113

Pricing Scale Forecasting Compensation 113

SaaStr

OCTOBER 17, 2023

If you’ve raised venture capital, you know net revenue retention is important. PST — Former VP of Customer Success and current founder and Managing Partner at Success Venture Partners, John Gleeson, shares his lessons learned scaling customer success from $1M to $300M in ARR. An ability to scale through a couple of stages of growth.

Scale 161

Scale Sales Hiring Customer Success Scaling 161

SaaStr

APRIL 4, 2023

This means you can raise prices, add modules, and expand, increasing the average revenue per customer account (ARPA). Not only did they bring in and convert more leads, but they also moved part of the customer base upmarket, increasing LTV and revenue. Otherwise, things will slow down. Not surprisingly, growth picked up again.

Scale 228

Scale Strategy Scaling Outbound Sales Team 228

User Pilot

OCTOBER 24, 2023

From the messaging, positioning, and pricing models, every little detail needs to be perfect for product-led growth to take off. TL;DR Usage-based pricing is a consumption-based pricing model that charges customers based on how much they use a product (instead of at a flat monthly rate). What is usage-based pricing?

Pricing 89

Pricing Payment Solutions SaaS Payments Payments 89

SaaStr

AUGUST 21, 2023

So SaaStr itself is a little funky — we only have 9 team members but a fair amount of scale in terms of reach, revenue, and in some cases, software utilization. The price? To some extent, it’s just a natural output of how enterprises price. So we pay close to the lowest price for the Enterprise vendor — $15,000 a year.

SMB 224

SMB Enterprise Scale Pricing 224

Blulogix

JANUARY 16, 2024

Understanding the Benefits of Usage-Based Pricing By BluLogix Team In the fast-paced and ever-changing world of modern business, the ability to adapt and be flexible is crucial for thriving. This is especially true in the realm of pricing models, where a one-size-fits-all approach often falls short.

Pricing 52

Pricing Scale Telecommunications Subscription 52

Baremetrics

AUGUST 8, 2021

For most, the easiest ways to increase customer acquisition rates are to offer a freemium model or price your product on the lower end of the spectrum. However, to keep your business afloat, you’ll need to effect a SaaS price increase. Results in an Increase in Revenue 2. Raise Prices for New Customers 2.

Pricing 111

Pricing SaaS Scale Churn 111

Baremetrics

SEPTEMBER 28, 2021

Penetration pricing is one of the many pricing strategies employed by companies in an attempt to increase their revenue and/or profit. Penetration pricing is the strategy of offering extremely low prices when entering a market to entice customers to try a product or service. The advantages of penetration pricing 2.

Pricing 90

Pricing Scale Branding Scaling 90

SaaStr

FEBRUARY 17, 2023

While the allure of customer acquisition can pull a founder’s attention, it’s equally important to dedicate resources to fighting churn and expanding revenue from existing customers. They discuss how Fox helped build a churn-fighting, upselling, and cross-selling machine that continues to generate revenue. Something missing?

Retention 209

Retention Revenue Startup Sales Hiring 209

SaaStr

DECEMBER 14, 2022

Yamini Rangan, CEO at HubSpot, has many insights on how to serve SMB customers at scale. But because SMBs are rarely digital-first, their recent challenges allowed HubSpot to leverage their years of experience in marketing automation, as it became a core feature of how these companies worked to scale.

Scale 224

Scale SMB Scaling Innovation 224

Baremetrics

AUGUST 22, 2021

Subscription revenue can be defined most simply as a model which generates income from customers through recurring fees that are paid at regular intervals. Before we get into the more complicated stuff, let’s consider the difference between earning revenue and collecting revenue. Subscription Revenue is Easier to Scale 3.

Payment Features 90

Payment Features Payments Subscription Revenue 90

SaaStr

FEBRUARY 1, 2022

And that challenge some of your assumptions on how to scale. This is trending to 50/50 now that Asana has crossed $400m in ARR, but still a reminder a self-serve motion combined with sales jumping on the bigger deals can scale very, very far. 80% of Datadog’s revenue at $1.2B 80% of Datadog’s revenue at $1.2B

Scale 345

Scale SMB SaaS Scaling 345