SaaStr

JULY 24, 2023

So price increases have been the name of the game in SaaS for the past 12 months, in many (not all) cases to help make up for slowing growth: Zendesk up 16% Salesforce up 9% Google Workspace up 20% HubSpot up 12% Webflow up 16% Shopify up 33% Slack up 10% And some of them like Slack and Salesforce hadn’t raised list prices in quite some time.

Pricing 214

Pricing Software Review Churn SaaS 214

Tom Tunguz

AUGUST 22, 2023

The company’s pricing power at work : limited supply & increased demand pushes prices higher. Looking at some of the inventory metrics (this isn’t a software company!) AI has become the engine pushing the technology markets forward - both at the infrastructure & software levels.

AI 234

AI Pricing Business Cloud 234

SaaStr

NOVEMBER 6, 2023

If you’re selling software to SMB merchants and outside of tech like Shopify and Toast and Monday , things are pretty, pretty good, if in some ways still harder than before. If you’re selling sales and marketing software, like Zoominfo, it can seem a lot tougher than 12-18 months ago. So where does this all net out?

Merchant Services 273

Merchant Services Azure Software AWS 273

The Daily Egg

JANUARY 6, 2021

You need good onboarding software to hire, train, and engage new employees with your company culture in the most effective way. It can be daunting trying to find comprehensive software at an affordable price—especially in the world of remote work, where you need to utilize different tools for business success.

Onboarding 325

Onboarding Software Review Software Company Culture 325

SaaStr

JANUARY 10, 2022

Q: How can enterprise software (SaaS) pricing be optimally defined, taking into account that two of three versions of the software can be offered, e.g. ‘small’, ‘medium’, ‘large’? different enterprise products … each with different approaches to pricing! Not on pricing.

Pricing 231

Pricing Cloud Enterprise Software 231

The Daily Egg

MAY 11, 2021

After hours of comparing some of the top webinar software out there and looking through lists of features and price points, we’ve […]. The post Best Webinar Software appeared first on The Daily Egg. It’s no wonder there is a slew of webinar tools out there at your disposal.

Software 298

Software Pricing Branding 298

Andreessen Horowitz

MARCH 22, 2024

We’re in the very early days of genAI and until adoption curves and costs stabilize, there won’t be any tried-and-true pricing or packaging frameworks. We’ve also seen some companies use their genAI feature as an upsell lever to increase conversion to a higher pricing tier or cover part of the cost of serving genAI.

Generative AI 116

Generative AI AI Pricing B2B 116

Tom Tunguz

AUGUST 1, 2022

How much value does a successful software startup create per dollar of venture investment? Over the last 30 years, a venture dollar invested in a successful US software startup generated $10 of value. When the IPO markets shuts, exit value regresses to the average M&A price. About 10x, though it’s volatile.

Startup 268

Startup Software Pricing Investment 268

Tom Tunguz

AUGUST 7, 2022

This year, private equity firms have acquired five public software companies, totalling $38b in value. Since these transactions’ details are public, we can use them to infer how the private software market values companies. But no relationship exists between the Nasdaq’s price level & multiples. Growth Rate.

Acquisition 258

Acquisition Pricing Startup Software 258

Tom Tunguz

DECEMBER 26, 2022

Constellation Software is a $30b+ publicly-traded software holding company employing more than 25,000. A former venture capitalist, Mark Leonard started Constellation in 1995 with $15m of outside investment & a goal of buying vertical software companies with a moat & good unit economics. Price Increases.

Software Review 232

Software Review Investment Software Acquisition 232

Tom Tunguz

MARCH 16, 2022

Is charging by consumption (usage-based pricing) a superior model for a business? Application software companies sell seats. Most of the time, application software companies don’t sell seats via UBP. What should my unit of pricing be? The goal of UBP is to align the cost of software with the value.

Pricing 244

Pricing Scale Banking Startup 244

Tom Tunguz

OCTOBER 4, 2020

Public software companies trade on forward revenue multiples. Let’s cover one today: does the market price efficiently? The market isn’t pricing modern software companies well if pricing them principally on forward multiple. Ten years ago, forward multiples remained in a tight band between 5-10x.

Software 286

Software Pricing Retention Revenue 286

SaaStr

JANUARY 3, 2022

With the rise of “Product Led Growth” as such a key concept in SaaS, it brings up an age-old question in business software: Should all pricing be transparent? Can you even have a mostly self-service motion in PLG with “Contact Me” in your pricing? It’s a mix.

Pricing 245

Pricing Enterprise Cloud B2B 245

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 293

Pricing Scale Enterprise Onboarding 293

SaaStr

AUGUST 26, 2022

Series B and later prices are down across the board from their peaks in 2021 and Q1’22, down 30% or more. Fenwick’s blended numbers see overall Series B and later round pricing down about 30%. #3. But overall, valuations and prices post-Series A still remain way ahead of where they were up until 2018.

Pricing 308

Pricing Social Media B2C Startup 308

Clouded Judgement

DECEMBER 21, 2023

Subscribe now Is Software Rebounding? This is the first quarter we’ve heard that message, and a good leading indicator for the rest of the software buying universe. I’m calculating FCF by taking the Operating Cash Flow and subtracting CapEx and Capitalized Software Costs. net retention and CAC payback).

Cloud 177

Cloud Software Benchmarks Retention 177

SaaStr

FEBRUARY 10, 2023

Dear SaaStr: How Do Enterprises Decide Which Software Vendor to Sign a Deal With? Price rarely wins per se. They may go with their #2 choice based on price … but generally only if they view the top 2 vendors as mostly fungible. The post Dear SaaStr: How Do Enterprises Decide Which Software Vendor to Sign a Deal With?

Enterprise 256

Enterprise Software Pricing Branding 256

SaaStr

DECEMBER 27, 2019

You could spend days reading about pricing and pricing strategies in software on the web, but a lot of this content doesn’t really hit one, basic fundamental point — there is no real reason any particular piece of software should cost anything in particular. Or something. Or a lot. Or anywhere in between.

Pricing 328

Pricing Enterprise Software Sales 328

Stax

JANUARY 24, 2024

The phrase “dynamic pricing” often sparks heated debates in eCommerce and retail, and it’s not hard to see why. If you’ve ever booked a hotel, ordered an Uber, or shopped on Amazon, you’ve experienced the effects of dynamic pricing in real-time. Prices may shift down or up at a moment’s notice.

Payment Methods 88

Payment Methods Pricing Airlines Payment Solutions 88

Tom Tunguz

JANUARY 12, 2022

In the last few weeks, public software company multiples have halved. Beyond the most recent cycle, how often do the web2 and web3 software markets move in synchrony? Beyond the most recent cycle, how often do the web2 and web3 software markets move in synchrony? The cryptocoins appreciated much more than software.

Software 310

Software Marketing Trends Startup 310

SaaStr

JULY 18, 2022

Gartner: businesses will spend $100,000,000,000 more on software in 2023 than 2022. As of July 2022, Gartner predicts: Overall business software spend will still grow a stunning 11.8% That means $100 Billion more software spend in 2023 than 2022. The post Gartner: Software Spend Will Still Grow by $100 Billion in 2023.

Venture Capital 334

Venture Capital Software Cloud Forecasting 334

Subscription Flow

FEBRUARY 20, 2024

If you are on the lookout for automated billing software for small businesses, this is the blog for you to read. In today’s world, having automated billing software is of immense importance because most SaaS companies are growing at an impossibly fast rate due to the various technological booms that are taking place around the world.

Payment Solutions 105

Payment Solutions Payment Features Payment Services SaaS Payments 105

Tom Tunguz

DECEMBER 11, 2022

First, the premium to the public price is 31%. Average Software Public Value. As Michael Mauboussin writes in Expectations Investing , there’s information in price. Second, the multiple is 8.4x NTM revenues. Both of these data points imply public multiples have room to grow. The M&A market may be thawing a bit.

Acquisition 224

Acquisition Startup Software Pricing 224

Clouded Judgement

SEPTEMBER 15, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Subscribe now Software Setup Currently, interest rates seem to be the primary driver of software valuations. For the bottom 10 companies on the right hand side of the chart, the median change in stock price after earnings was (18%).

Software Review 130

Software Review Cloud Software AWS 130

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 110

Pricing Payment Solutions Payment Services SaaS Payments 110

Tom Tunguz

AUGUST 8, 2021

Pricing is one of the questions that persist through the evolution of a company. A common topic today in software startup board rooms is: should the company price by seat or by usage? Madhavan has led more than 200 pricing projects across software companies. It’s the canonical book on modern pricing.

Pricing 233

Pricing Startup Strategy Innovation 233

Tom Tunguz

FEBRUARY 8, 2022

The business builds software to help other crypto companies grow. Perhaps you’ll sell infrastructure to help other startups scale or software to manage internal operations. Most US web2 software companies might progress through their lifespans without ever uttering the words treasury management in a board meeting.

Payment Solutions 241

Payment Solutions Outsourced Development Software Review Software 241

SaaStr

OCTOBER 20, 2022

One thing that is clear is that public SaaS and Cloud stock prices are way down. And they say 2023 will be a banner year for enterprise software spend at least — growing a stunning 11% to $880 Billion. The post Gartner: Business Software Spend Still Forecast to Rise 11.3% But is spending? I’m not so sure.

Forecasting 249

Forecasting Artificial Intelligence Software Business 249

Clouded Judgement

JULY 21, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Subscribe now Are Software Companies Bad Businesses? There was some talk last week on the All-In podcast about software companies. The gold standard for all public software companies is GAAP net income in the fullness of time.

Cloud 130

Cloud Software Sales Hiring Scale 130

Clouded Judgement

SEPTEMBER 1, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Subscribe now Are Software Companies Over or Undervalued? Today I wanted to dig in to this question and its implications: “Are software companies fairly valued today?” Follow along to stay up to date! ” Let’s dig in.

Software Review 183

Software Review Cloud Software Revenue 183

FastSpring

MARCH 3, 2021

Bundle pricing is one of the most common pricing strategies out there: it’s used by almost every business in all industries. In this post, we’ll talk about the benefits of price bundles and how you can successfully use them in your ecommerce business. What is bundle pricing? Advantages of Bundle Pricing.

Payment Methods 78

Payment Methods Payment Solutions Pricing Software 78

SaaStr

JUNE 28, 2023

If there’s one rule almost everyone universally agrees with when building software, it’s that focus is critical. Point Solution Software Is Extremely Limiting There exists a set of companies that could be built and are often not built that would break this rule of building software with a singular focus. the compound startup.

Startup 223

Startup Software Sales Hiring Pricing 223

Clouded Judgement

JUNE 16, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Subscribe now Growth Adjusted Software Multiples The last 6 weeks (since the start of May) has been quite the run for software companies. I’m using the period of 2010+ given that’s really when cloud software came about.

Cloud 130

Cloud Software Subscription Payment Features 130

FastSpring

DECEMBER 16, 2022

One popular solution for managing and automating parts of the sales process is by using CPQ (Configure, Price, Quote) Software. CPQ (Configure Price Quote) is a type of sales software that allows sales reps to quickly and easily configure products and services, generate accurate pricing, and create quotes to be sent to customers.

Payment Services 138

Payment Services Payment Solutions Pricing Payments 138

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 105

Pricing Payment Solutions SaaS Payments Payments 105