Clouded Judgement

JUNE 20, 2023

The 63 companies that I’ll discuss here (which is not an exhaustive list, but is still comprehensive) all reported quarterly earnings sometime between April 2th – June 8th. Over my years as a VC, I’ve had the opportunity to meet with hundreds of entrepreneurs who are all building special companies.

Cloud 161

Cloud Software Benchmarks Scale 161

User Pilot

OCTOBER 5, 2023

Reducing the CAC payback period can help SaaS companies boost their financial performance and drive growth. TL;DR The CAC payback period measures the time it takes for a company to recover the money invested in new customer acquisition. What is CAC payback? Why is tracking the CAC payback period important?

SaaS Payments 105

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 105

Stax

FEBRUARY 21, 2024

It’s a ratio that compares the growth in recurring revenue to the sales and marketing expenses incurred during a specific period. And it worked; the Model-T was the most-produced car in the world until 1975. Enter the SaaS Magic Number, which measures the return on sales and marketing spend in generating new subscription revenue.

SaaS Payments 88

SaaS Payments Payments Payment Services Stax 88

Clouded Judgement

DECEMBER 20, 2022

The 67 companies that I’ll discuss here (which is not an exhaustive list, but is still comprehensive) all reported quarterly earnings sometime between October 24th – December 12th. Over my years as a VC, I’ve had the opportunity to meet with hundreds of entrepreneurs who are all building special companies.

Cloud 130

Cloud Software Review Software Benchmarks 130

ChurnZero

JUNE 9, 2023

CS team members at all levels would do well to learn about metrics that can better articulate the effect they have on churn, renewals, and expansions. Annual recurring revenue (ARR) ARR is the aggregate value of contracts that renew yearly. Annual recurring revenue (ARR) ARR is the aggregate value of contracts that renew yearly.

Finance 98

Finance Metrics Customer Success Headcount 98

Kellblog

OCTOBER 13, 2022

Is it MRR (monthly recurring revenue)? Specifically, what does “recur” mean? Why does the phrase “recurring revenue” appear exactly zero times in Snowflake’s 10-Q ? What’s your CAC ratio if I don’t know what your ARR is because I don’t know what the recurring means?

Metrics 132

Metrics SaaS Payments SaaS Payment Features 132

Blulogix

JANUARY 5, 2024

Subscription Billing Definition: Subscription billing is a business model in which customers pay a recurring fee at regular intervals, typically monthly or annually, in exchange for access to a product or service. Importance: Recurring revenue is a key financial metric for subscription businesses.

Subscription 52

Subscription Payment Features Payment Services Payments 52

Baremetrics

NOVEMBER 2, 2021

Monthly recurring revenue (MRR): How much subscription revenue are you bringing in monthly? Use Baremetrics to calculate business metrics for Shopify Apps 6. Customer acquisition cost (CAC): What does it cost to onboard a new customer? Shopify is a huge opportunity for developers looking to expand into the micro-SaaS space.

Payment Solutions 98

Payment Solutions Outsourced Development Underperforming Technical Team Metrics 98

Baremetrics

OCTOBER 8, 2021

That’s because it has competitive fees among the big processors, it can handle recurring revenue streams, and it is easy to receive payments and send payouts across the globe. However, the rudimentary analytics dashboard does not offer all of the functionality needed to maximize growth. What is CAC? What is CAC?

Payment Services 96

Payment Services Payment Methods Payments SaaS Payments 96

Baremetrics

SEPTEMBER 26, 2021

Most SaaS companies keep an eye on churn, but do you calculate both revenue churn and customer churn? Most SaaS companies keep an eye on churn, but do you calculate both revenue churn and customer churn? If you had to calculate them all on your own, you wouldn’t have time to do anything else. CAC-to-LTV ratio Churn i.

Metrics 95

Metrics SaaS Payments SaaS Customer Lifetime Value 95

Baremetrics

NOVEMBER 2, 2021

In this article, I am going to go through what CLV is, how to calculate CLV, why CLV is important, and how to maximize your CLV by tending to your customers following the “retention” part of the AARRR pirate metrics. Calculate your customer lifetime value Get deep insights into MRR, churn, LTV and more to grow your business.

Customer Lifetime Value 98

Customer Lifetime Value Payment Services Payments SaaS Payments 98

Point Nine Land

JUNE 18, 2023

This is why it’s so essential to use cohort analysis, especially in SaaS, where it’s all about retaining customers and revenue. In fact, it’s almost impossible to get a really good understanding of a service’s usage without looking at activity and retention numbers on a cohort-by-cohort basis. of the guide. Basics What is a cohort analysis?

SaaS Payments 128

SaaS Payments Payment Services Payments SaaS 128

Baremetrics

OCTOBER 7, 2021

While not every piece is needed to understand the performance of your company, you’ll need to track more than one sales KPI to figure out how to best generate recurring revenue. But don’t calculate all these KPIs by hand! That would distract you from all the other important decisions needed to keep your MRR increasing.

Payments 98

Payments Sales SaaS Payments Underperforming Technical Team 98

Baremetrics

OCTOBER 8, 2021

Stripe is often the payment processor of choice for SaaS businesses because it can handle recurring revenue streams. However, the rudimentary analytics dashboard included in Stripe does not offer all of the functionality needed to maximize growth. Why is it difficult to calculate LTV for Stripe customers? Table of Contents.

Payment Services 94

Payment Services Payments SaaS Payments Payment Features 94

User Pilot

NOVEMBER 24, 2023

You calculate customer acquisition cost by dividing the total acquisition cost by the number of new customers. You calculate customer acquisition cost by dividing the total acquisition cost by the number of new customers. You calculate customer retention costs by dividing the total retention cost by the number of customers retained.

Acquisition 105

Acquisition Retention Customer Lifetime Value Churn 105

ChurnZero

FEBRUARY 14, 2023

There is often more than one way to calculate a given Customer Success metric; Gaming. In a sense, that’s what business is all about. Customer Success metric 1: recurring revenue Recurring revenue is the total value of a subscription at the end of a given period. It demonstrates how fast a company is growing.

Customer Success 94

Customer Success Metrics Software Review Customer Lifetime Value 94

OpenView Labs

NOVEMBER 16, 2021

Then all that information is used to create a finely tuned economic model that maximizes growth while minimizing expenses. Then all that information is used to create a finely tuned economic model that maximizes growth while minimizing expenses. Annual Recurring Revenue (ARR). A Quick Glossary of SaaS Metrics. Churn Rates.

Benchmarks 71

Benchmarks Scale Metrics Sales Recruiting 71

Chart Mogul

JULY 6, 2023

A quick refresher To understand net negative churn we need to quickly define churn and how we calculate the metric. Negative net Monthly Recurring Revenue (MRR) churn exists when MRR gained from existing customers from expansion and reactivation exceeds the MRR lost from churn and contraction. What is net negative churn?

Benchmarks 52

Benchmarks Churn SaaS Customer Lifetime Value 52

Subscription Flow

DECEMBER 1, 2023

Recurring revenue models, or subscription models , can be a great way for businesses to generate income while providing customers with the options they want. You must add up all of your marketing and sales expenses that go toward acquiring new customers in order to find your CAC.

Subscription 59

Subscription Payment Features Metrics Business 59

Baremetrics

SEPTEMBER 22, 2021

Unit economics is the expression of all the direct revenues and costs associated with a single unit. Based on the results of some simple unit economics calculations, it is clear to founders and potential investors alike whether a company will be able to scale and become profitable. How do you calculate unit economics?

SaaS Payments 91

SaaS Payments Payments Payment Methods Scale 91

FastSpring

OCTOBER 25, 2019

It’s this period, the Customer Acquisition Cost (CAC) Payback Period, that companies need to keep an eye on to maintain profitability. In this guide, we’re going to look at: CAC Payback Period: Why It’s Important For Your SaaS. How to Calculate Your CAC Payback Period. How to Reduce Your CAC Payback Period.

Payments 63

Payments Scale SaaS Payments SaaS 63

Baremetrics

OCTOBER 18, 2021

All the data your startup needs Get deep insights into your company's MRR, churn and other vital metrics for your SaaS business. Baremetrics can calculate MRR for Shopify Partner Apps What are growth metrics for? How to calculate MRR for Shopify Partner Apps The Basic MRR calculation What are the different types of MRR?

Outsourced Development 98

Outsourced Development Underperforming Technical Team Churn Systems Review 98

Baremetrics

AUGUST 30, 2021

This post is about Annual Recurring Revenue (ARR), a key metric for measuring the success of a SaaS offering. Retaining employees How do you calculate ARR? Annual recurring revenue, as the name suggests, is the total forecasted annual revenue of a SaaS company based on the subscription contracts it has garnered. What is ARR?

SaaS Payments 98

SaaS Payments Payment Services Payments Outsourced Development 98

ProfitWell

NOVEMBER 13, 2019

But you can get a more representative picture of your progress by reducing the number of metrics you observe. If you notice that churn or CAC has started to increase steadily over a period of months, then you can plan for how to avoid a much more negative forecast of your future growth. Why subscription companies need to track KPIs.

Subscription 80

Subscription Payment Features Customer Lifetime Value Benchmarks 80

ProfitWell

JANUARY 3, 2020

There are so many SaaS acronyms used on the daily—LTV, CAC, MRR, ARR, ROI, ARPU—making it difficult to keep them all straight sometimes. Annual recurring revenue, or ARR, is a commonly-used SaaS term, and for good reason. ARR reveals how much recurring revenue you can expect based on yearly subscriptions.

Customer Lifetime Value 54

Customer Lifetime Value Scale Churn Subscription 54

CustomerSuccessBox

AUGUST 31, 2021

Customer Success is the key to driving retention, renewals and thereby, increasing recurring revenue for the business. All thanks to the customer success function! In B2B SaaS you spend anywhere between 1–3X times the Annual contract value (ACV) as your Cost of Acquiring the Customer (CAC). Are you any one of the following?:-.

Customer Success 52

Customer Success Customer Lifetime Value Churn Acquisition 52

CustomerSuccessBox

MARCH 25, 2022

Then while considering customer acquisition cost (CAC) why miss out on customer retention cost (CRC)? The reason for calculating customer retention cost. Eventually driving business, increasing profits, and reducing churn is the point of making business. What is customer acquisition cost (CAC)? So let’s bring it!

Retention 52

Retention Customer Lifetime Value Acquisition Churn 52

Baremetrics

MAY 26, 2021

While financial models are challenging for every business, SaaS companies have unique challenges and a focus on recurring revenue and customer loyalty. This helps you set realistic goals, more accurately predict growth and forecast your recurring revenue, and understand how many new customers you need to acquire to meet those goals.

Metrics 59

Metrics Customer Lifetime Value SaaS Forecasting 59

OPEXEngine

JULY 6, 2021

Deleveraging occurs either as the borrower reduces its indebtedness by amortizing down the loan via cash flow, or by increasing its EBITDA and therefore improving its capacity to service and repay the debt. A typical venture borrower is therefore very unlikely to qualify for traditionally adjudicated credit. Different measures of leverage .

Software Review 52

Software Review Retention Enterprise Technical Review 52

OPEXEngine

MARCH 30, 2021

Deleveraging occurs either as the borrower reduces its indebtedness by amortizing down the loan via cash flow, or by increasing its EBITDA and therefore improving its capacity to service and repay the debt. A typical venture borrower is therefore very unlikely to qualify for traditionally adjudicated credit. Different measures of leverage .

Software Review 52

Software Review Retention Enterprise Technical Review 52

Sales Enablement, SaaS and Growth

JULY 24, 2018

Rule of 40 - finding the right blend of growth and profitability Perhaps the most famed SaaS rule of all, is the rule of 40. It’s a simple calculation to help you quickly and easily understand the health of a SaaS business. My advice is to use them as a starting point of discussion at your business, rather than follow them blindly.

SaaS Payments 131

SaaS Payments Sales Hiring Payment Services Business 131

ProfitWell

NOVEMBER 26, 2019

There are a lot of tools out there, but they’re not one-size-fits-all. SaaS analytics uncover things like churn and track metrics like monthly recurring revenue (MRR), lifetime value (LTV), and churn rate. And Metrics also offers optional paid add-ons to reduce churn and improve pricing. And SaaS analytics play a crucial part.

SaaS Payments 85

SaaS Payments Subscription Payment Features Technical Review 85

ChurnZero

FEBRUARY 14, 2023

There is often more than one way to calculate a given Customer Success metric; Gaming. In a sense, that’s what business is all about. Customer Success metric 1: recurring revenue Recurring revenue is the total value of a subscription at the end of a given period. It demonstrates how fast a company is growing.

Customer Success 52

Customer Success Metrics Software Review Customer Lifetime Value 52

Baremetrics

SEPTEMBER 15, 2021

Simply put, the net cash flow is all the money coming in minus all the money going out. The statement of cash flow summarizes all of the money entering and exiting the company. This is used to calculate the net cash flow. Baremetrics makes it easy to collect and visualize all of your cash flows. Table of Contents.

Payments 89

Payments Payment Services SaaS Payments Forecasting 89

Baremetrics

MAY 18, 2021

All the data your startup needs Get deep insights into your company's MRR, churn and other vital metrics for your SaaS business. Working to acquire, qualify, and convert leads is a critical part of SaaS business success, whether you’re a startup or an established enterprise. Try Baremetrics free. Table of Contents. Table of Contents.

SaaS Payments 100

SaaS Payments Customer Lifetime Value Payments SaaS 100

Baremetrics

OCTOBER 27, 2021

All the data your startup needs Get deep insights into your company's MRR, churn and other vital metrics for your SaaS business. Quick Ratio for Shopify Partner Apps Overview Baremetrics can automatically calculate the quick ratio for Shopify Partner Apps What is the quick ratio for Shopify Partner Apps? Try Baremetrics free.

Software Review 94

Software Review Benchmarks Churn Subscription 94

Baremetrics

OCTOBER 24, 2021

For example, the Stripe analytics dashboard is lacking the needed depth for SaaS businesses that rely on recurring revenue. The automated processing of raw Stripe data with top-of-the-line data visualization gives you the ability to put all of that customer information into action. Table of Contents. What is Stripe? What is Stripe?

Payment Services 97

Payment Services Payment Features Payment Methods Payments 97