SaaStr

NOVEMBER 1, 2023

are realtively low, as a huge amount of their payments revenue goes out to the payment processors. 15% Customer Growth Leads to 48% Revenue Growth Always helpful to me to see this math broken out. 15% Customer Growth Leads to 48% Revenue Growth Always helpful to me to see this math broken out. Much less than revenue grew.

Payment Services 291

Payment Services Payments SaaS Payments Payment Solutions 291

SaaStr

AUGUST 7, 2023

ARR stands for Annualized Recurring Revenue, although its real-world definition has evolved over time. As you’ll learn further down in this article, ARR now means any type of software-related revenue with 100%+ Net Revenue Retention (NRR), even if it’s not truly recurring. The only thing that mattered was revenue.

Metrics 190

Metrics SaaS Sales Hiring Finance 190

Tom Tunguz

JANUARY 23, 2024

There was a recurring theme when delegating: Identify the time-consuming & repetitive tasks by coloring or labelling your calendar, or calculating at the end of the week or month. A board delegating tasks to a CEO will agree on revenue goals & burn targets, not the details of the implementation. The answer is no.

ChatGPT 196

ChatGPT AI Metrics Revenue 196

Stax

FEBRUARY 26, 2024

We can see this trend in action in the realm of payment processing with the advent of recurring payments, also known as automatic payments. So, let’s dive into the realm of recurring payments and how they can benefit your business. Learn More What are Recurring Billing and Payments? How Do Recurring Payments Work?

Payment Services 88

Payment Services Payment Features Merchant Services Payment Methods 88

Clouded Judgement

DECEMBER 21, 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 October 25th – December 7th. Over my years as a VC, I’ve had the opportunity to meet with hundreds of entrepreneurs who are all building special companies.

Cloud 177

Cloud Software Benchmarks Retention 177

SaaStr

SEPTEMBER 19, 2021

If you want to hit the plan for Q1'22, You need to be hiring all the sales reps you'll need then … Now. Recurring revenue certainly has pros and cons. The biggest pro is it recurs With even 120% NRR, you basically double in 4+ years even with no new customers. Now that’s magic. How many reps.

Sales Hiring 276

Sales Hiring Scale Headcount Acquisition 276

Stax

MARCH 6, 2024

For businesses offering subscriptions, memberships, retainers, and other recurring services, recurring billing is a powerful solution to streamline processes and ultimately enhance revenue generation. Users are used to recurring charges, and businesses are primed to take advantage. Learn More What is Recurring Billing?

Merchant Services 88

Merchant Services Payment Services Payment Methods Payment Features 88

Stax

JANUARY 28, 2024

The most potent benefit of the subscription-based business model is that companies are guaranteed a fixed revenue stream—if they can retain their customers or subscribers. Subscription billing and recurring billing are the backbone of any subscription business model. Recurring billing is a perfect fit for subscription businesses.

Payment Features 88

Payment Features Payment Methods Payment Solutions SaaS Payments 88

Clouded Judgement

AUGUST 25, 2023

Klaviyo Overview From the S1 - “Klaviyo enables businesses to drive revenue growth by making it easy to bring their first-party data together and use it to create and deliver highly personalized consumer experiences across digital channels. After the roadshow launch there’s typically ~2 weeks before the stock starts trading.

Benchmarks 246

Benchmarks Artificial Intelligence Data Software Review 246

Stax

FEBRUARY 21, 2024

So, of course when it came to revenue-driving activities, Ford knew that success in marketing—and business—wasn’t about how much your marketing spend is, but how efficiently you spend it. 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

SaaStr

APRIL 18, 2021

The reasons are many, but I think they can almost all be summed up in one key factor: SaaS compounds. It means it’s really, really hard to get revenues going. You close a customer for $120 in annualized revenue, you only get to recognize $10 of that a month. Tons of work, tiny revenues to start.

SaaS 324

SaaS Travel Churn Revenue 324

SaaStr

MAY 14, 2021

So it’s hard to dig even deeper inside yourself to get that last 10-15% of additional, much-harder-to-achieve revenue out of the ether. Because in recurring revenue, growing 10-15-20%+ more this year than even your stretch plan will pay huge dividends 3-4 years down the round. So I want to help. Don’t hesitate.

Sales Hiring 283

Sales Hiring Scale Engineering Customer Success 283

User Pilot

OCTOBER 4, 2023

A simple yet effective answer to all your growth-related questions. Net monthly recurring revenue (MRR) growth enables you to calculate the change in your company’s recurring revenue on a month-to-month basis. As we will see in this article, there are several key factors that affect monthly revenue.

Metrics 105

Metrics Customer Lifetime Value Churn Retention 105

Clouded Judgement

APRIL 19, 2024

NTM revenue multiple. Their GAAP revenue grew 5% in 2023, and 29% in Q4 ‘23 YoY. For context, full year GAAP revenue in 2023 was $628m. I lay out all of these numbers to hopefully portray that the business is growing much faster than the 5% 2023 revenue growth would suggest. Top 5 Median: 16.3x

Cloud 141

Cloud Scale Subscription Payment Features 141

User Pilot

MARCH 25, 2024

It uses revenue and operating costs to determine the company’s value. Revenue-based valuations are more suitable for SaaS startups because it doesn’t take into account upfront investment which affects SDE or EBITDA negatively. The multiple depends on numerous factors, like sustainability and transferability of revenue and growth.

SaaS 105

SaaS Customer Lifetime Value Acquisition Metrics 105

Tom Tunguz

JANUARY 26, 2021

The valuation multiples on annual recurring revenue are the highest across startup categories. Unlike the public markets, which typically use enterprise-value-to-forward-revenue multiples, the venture industry standardized on market-cap-to-forward-ARR. One of the key terms is ARR, which is annual recurring revenue.

SMB 276

SMB Trends Startup Subscription 276

User Pilot

FEBRUARY 28, 2024

There are various metrics to track the customer path, such as: Awareness stage metrics Acquisition stage metrics Activation stage metrics Adoption stage metrics Retention stage metrics Revenue stage metrics Referral stage metrics To create a successful customer path, follow the steps below: Conduct user path analysis to identify the happy path.

Customer Lifetime Value 105

Customer Lifetime Value SaaS Software Review Acquisition 105

Clouded Judgement

SEPTEMBER 12, 2023

The 62 companies that I’ll discuss here (which is not an exhaustive list, but is still comprehensive) all reported quarterly earnings sometime between July 27th – September 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 169

Cloud Software Benchmarks Retention 169

Stax

JANUARY 29, 2024

As industry leaders in billing software, our mission is to help our customers work more efficiently, recover more revenue, and effortlessly collect invoices. TL;DR A billing platform is a comprehensive system facilitating subscription management, recurring billing, revenue recognition, payment gateways, analytics, and dunning processes.

Stax 88

Stax Payments Payment Services Payment Features 88

FastSpring

JANUARY 10, 2023

There are tons of monthly recurring billing software solutions available, so it can seem difficult to determine which one is right for your business. This article is meant to help by providing two important factors to consider when choosing a recurring billing tool. FastSpring: All-in-One Billing Solution for SaaS.

Payment Solutions 134

Payment Solutions Payment Features Payment Methods Payment Services 134

SaaStr

MAY 3, 2021

And also — to understand where you can’t let it all go. And you must have someone with recurring revenue experience. Accounting for recurring revenue companies is really nothing like that of non-recurring revenue companies, especially in modeling, deferred revenue, etc.

Part-Time VPE 281

Part-Time VPE Sales Hiring Sales Recruiting Outsourcing Services 281

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. You Want One-Third of Your Revenue Outside the U.S.

Engineering 253

Engineering Business Model Pricing Scaling 253

Stax

FEBRUARY 28, 2024

This includes subscription management, revenue recognition, dunning management, integrations with other business systems, fraud prevention, and more. This includes subscription management, revenue recognition, dunning management , integrations with other business systems, fraud prevention, and more.

Payments 88

Payments SaaS Payments Payment Services Merchant Services 88

SaaStr

SEPTEMBER 12, 2022

I worry if you can even recruit them at all. It’s a bummer, but it happens to us all. In SaaS, the revenue recurs. It’s more about things I worry about after : Founders’ understanding of market doesn’t get deeper. I really worry when 9–12 months later, the founders do not understand their market better. When others fly.

Startup 283

Startup Scaling SaaS Revenue 283

SaaStr

JANUARY 15, 2021

25% of revenue from professional services may sound high, but it’s a fairly standard ratio in true enterprise software. And isn’t services revenue a friction-full waste of time anyway? I mean, it’s not recurring. You’re going to be doing some, a lot, or all of this for them. 10-25% more revenue.

Revenue 306

Revenue Pricing Enterprise SaaS 306

SaaStr

MAY 8, 2021

Monthly invoices can make things even worse, of course. Let SMBs pick annual or monthly, at least as an experiment. You are robbing a bit of a long-term revenue stream if your over-discount to get an annual deal done now. A multi-year pre-paid contract can be even more magical, and give you months of extra cash in a start-up.

SaaS Payments 270

SaaS Payments Payment Services Scale Payments 270

Tom Tunguz

OCTOBER 18, 2020

Most high-growth software investors value public companies on enterprise value to forward revenue multiple. But investors in private companies use a different metric, enterprise value to forward annual recurring revenue (ARR).The The public markets project revenue for the next 12 months. What conclusions could we draw?

Software Review 363

Software Review Finance Enterprise Acquisition 363

SaaStr

DECEMBER 21, 2022

Document Cloud revenue was $2.38 Adobe – Adobe Reports Record Q4 and Fiscal 2022 Revenue [link]. in revenue in 2021, about $8B dropped to operating income and well over that in free cash flow. 59% of revenue from Americas, 41% from Rest of World. Adobe is almost 100% subscription revenue based now.

Scale 270

Scale Cloud Subscription Payment Features 270

Clouded Judgement

APRIL 12, 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 January 25th – March 30th. 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 Retention 161

Clouded Judgement

APRIL 4, 2024

Our platform’s broad capability allows us to serve organizations of all sizes across a wide range of industries and geographies. Last Twelve Months (LTM) Revenue Rubrik did $628m of revenue in its last twelve months LTM Revenue Growth Rubrik grew revenue 5% over its last 12 months.

Benchmarks 117

Benchmarks Data Cybersecurity Cloud 117

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

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 Does Recur Mean? In the annual world, “recur” seemed pretty clearly defined.

Metrics 132

Metrics SaaS Payments SaaS Payment Features 132

SaaStr

JANUARY 12, 2021

The CEO basically is the VP of Sales and Revenue and Customer Success, with maybe a junior resource or two helping. or a bit beyond — absolutely all of these hires will be accretive if they’re great. 3m to fund Your First Great Revenue Team. Precious time scaling your recurring revenue business.

Sales Hiring 271

Sales Hiring Scale Marketing Sales 271

Chart Mogul

JULY 2, 2021

When I hear ARR: (note ARR = "Annual Recurring Revenue") pic.twitter.com/etalzXy87g — Chetan Puttagunta (@chetanp) June 19, 2020. Annual Recurring Revenue — David Ulevitch ???? What is Annual Recurring Revenue? No, the A in ARR does not stand for ‘anticipated.’ davidu) April 28, 2021.

Subscription 133

Subscription Payment Features Metrics Churn 133

FastSpring

DECEMBER 9, 2022

SaaS billing software automates one or more of the various aspects of the recurring billing process — payment processing, fulfillment, dunning, and more. With many payment processors, you’ll need additional software to manage complex recurring payments, taxes, chargebacks, dunning, and more. Table of Contents. 3 Payment Processors.

Payment Services 142

Payment Services Merchant Services Payment Methods SaaS Payments 142

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

SaaStr

OCTOBER 18, 2019

Recurring revenue certainly has pros and cons. The biggest pro is it recurs. The real magic from a Wall Street perspective isn’t that Salesforce is “SaaS” and much of, say, Oracle still mostly isn’t … it’s that Salesforce’s revenue, with net negative churn, completely recurs every year. Jason – ed. __.

Sales Hiring 186

Sales Hiring Scale Headcount Revenue 186