SaaStr

MARCH 3, 2020

Still, my partial list in Cloud/SaaS: Google letting Microsoft buy / outbid for Github for $7.5b. Salesforce knew it, and did everything possible to win the deal, but their market cap and resources at the time were just not big enough. Both had their chance, and passed over valuation. HP is a non-player in SaaS after $12b.

Acquisition 209

Acquisition Technical Review Scale Cloud 209

SaaStr

NOVEMBER 21, 2022

In five years, they went from a $120,000 pre-seed round to a series D at a $12 billion valuation in early 2022. . Just like a boat needs an anchor, your SaaS process does too. SaaS companies can benefit from focusing on a few customers, helping them grow, and making them marquee customers. Start working to accelerate your SaaS.

Payments 177

Payments Payment Methods Embedded Payments Scale 177

SaaStr

DECEMBER 5, 2023

All of these components will ultimately drive your valuation. You also need dedicated resources across your organization — marketing, customer success, product, legal, and finance. Most founders want to expand their TAM. By going upmarket, you can land bigger deals with more opportunities to upsell and lower churn. The lesson learned?

Scale 181

Scale Enterprise readiness compliance Enterprise 181

ChurnZero

JULY 8, 2022

Cut to 2022, and the idea that a SaaS company could secure venture funding without investors digging deep into retention metrics seems comical, if not reckless. Net revenue retention (NRR) is taking center stage as the qualifying metric for determining the health of a SaaS business. NRR matters to SaaS executives and investors.

Technical Review 98

Technical Review Software Review Retention Metrics 98

SaaStr

JANUARY 24, 2022

Take a read if you are still running finance yourself, or just have an part-time outsourced resource. SaaS accounting and finance has gotten pretty complicated, and the impacts of getting it wrong have gone up substantially. But in SaaS, once you even get to about $2m ARR — it’s time to get your finances in order.

Finance 323

Finance Outsourcing Services Systems Review Technical Review 323

OPEXEngine

JULY 26, 2022

Even when the market is repricing and falling, key growth metrics remain fundamental targets to maintain or grow company value because they remain highly correlated to higher valuations, even in this market. Valuations are still pegged to top-level growth metrics, balanced by operating profitability. Revenue growth rates. Rule of 40.

Marketing 52

Marketing SaaS Benchmarks Metrics 52

Tom Tunguz

MARCH 17, 2018

Recently, people have been asking just where are we in the SaaS valuation cycle. Since 2013, we seen an incredible amount of volatility in SaaS forward multiples. Since that moment, SaaS multiples have more than doubled from to 7.2x. SaaS is winning ever greater marketshare across all these segments.

SaaS 164

SaaS Healthcare SMB Enterprise 164

SaaStr

OCTOBER 18, 2019

A few seasons back, we wrote a post on hitting how in SaaS, you have to be putting the resources in place by Q3 to hit the plan for the next year. We update this post a bit annually as we head into next year’s planning procress. I’m not sure we’ve gotten that much better at our resource planning in SaaS.

Sales Hiring 180

Sales Hiring Scale Headcount Revenue 180

OPEXEngine

JANUARY 25, 2022

Though the SaaS segment hasn’t emerged untouched from market-wide volatility, SaaS continues to attract high multiples and significant investment interest in companies with strong business models and strong growth rates. A comeback in valuations won’t impact high-quality assets. But it’s not all bad news. .

Venture Capital 52

Venture Capital Cybersecurity Forecasting Finance 52

ChurnZero

JUNE 15, 2021

In a world seemingly obsessed with hyper-growth, this may sound like heresy, but when evaluating a B2B software-as-a-service (SaaS) company, the most important metric we look at is retention. For more details about these distinctions and other key metrics, check out this resource from ChurnZero.

Retention 59

Retention Metrics Churn Customer Success 59

ChurnZero

DECEMBER 20, 2021

B2B SaaS Benchmarks: How Does Your Company Compare to +1500 of Its Peers? Watch this webinar to cover: A deep dive on 2020 SaaS retention benchmarks and the impacts the pandemic has had. Overview of the current B2B SaaS market and valuation drivers. Speakers: Rob Belcher, Managing Director, SaaS Capital.

Scale 98

Scale Benchmarks Leadership B2B 98

OpenView Labs

NOVEMBER 30, 2021

And there’s more and more bifurcation between the ‘haves’ – the fast growers – and the ‘have nots’ of SaaS than ever before. The ‘haves’, defined by growing quickly out of the gate and then maintaining 50% or faster revenue growth at significant scale, have seen their valuations skyrocket over the years. It’s a win-in.

Payment Services 80

Payment Services Benchmarks SaaS Payments Merchant Services 80

Sales Hacker

MARCH 1, 2024

GTMnow is the media extension of GTMfund – sharing insight on go-to-market from working with hundreds of portfolio companies backed by over 350+ of the best in the game executive operators who have been there, done that at the world’s fastest growing SaaS companies. Why are SaaS companies embracing it? So, owned media.

VP of Engineering 71

VP of Engineering Scale SaaS AI Search 71

OpenView Labs

MAY 8, 2020

Outlined below is a collection of key financial and capital market resources from the week ending 5/8. . May the 4th (Force) be with SaaS investors. In honor of Star Wars Day, we feel this Admiral Ackbar quote appropriately describes the near all-time high SaaS markets. Financial resources. Capital market resources.

Scale 52

Scale Marketing Payments Payment Solutions 52

Baremetrics

MAY 4, 2021

These models then feed into the overall financial model for your SaaS business. Adopting this approach provides you with invaluable insights into your subscription-based business, helping you calculate costs, improve budgeting, and allocate resources. Read more: The Best Financial Modeling Software for SaaS in 2021 2.

Forecasting 98

Forecasting Benchmarks Finance Subscription 98

Chart Mogul

JUNE 23, 2022

“May you live in interesting times” is a rough translation of a traditional Chinese proverb that is bearing more meaning today than ever in the history of SaaS. After a brilliant run up to 2022, SaaS valuations got hammered in the public markets lately. SaaS startup growth has taken a hit as well as we noted.

SaaS 52

SaaS DevOps as a Service Marketplace as a Service Forecasting 52

OPEXEngine

MARCH 9, 2022

R&D is the backbone of any SaaS company, yet to many CFOs, it is still a black box. How can Finance and Engineering management work together to diagnose weak areas, and shift R&D resources to produce better outcomes for the company? We looked at fast growth and slow growth SaaS companies.

Software Review 59

Software Review Development Team Review Technical Review Outsourced Development 59

OpenView Labs

MAY 29, 2020

Outlined below is a collection of key financial and capital market resources from the week ending 5/29. . The X’s and O’s of SaaS. “If gross multiple of invested capital—buying SaaS equities after IPO and holding long term is foolproof.”. 35% for the broader SaaS index). Financial resources. IRR and a 2.7x

Marketing 52

Marketing SMB Benchmarks Pricing 52

Sixteen Ventures

AUGUST 14, 2022

Thus the premium placed on NRR as a valuation metric. NRR is often referred to as the “North Star” metric for SaaS and Subscription companies as, simply put, higher NRR = higher company valuation. This will hurt your ability to advocate for your team and secure the resources you need for your team to thrive. CSMs and NRR.

Customer Success 97

Customer Success Investment Sales Hiring Retention 97

OpenView Labs

APRIL 10, 2020

Outlined below is a collection of key financial and capital market resources from the week ending 4/10. . Airbnb on the other hand will pay $100M (10%) in annual interest and issued warrants at a nearly 50% discount to it’s last valuation. Financial Resources. Capital Market Resources. Playbook for Tough Times .

Marketing 52

Marketing Benchmarks Government Trends 52

OPEXEngine

AUGUST 23, 2022

Our August SaaS conversation focused on high performance in R&D, with OPEXEngine CEO and Founder Lauren Kelley hosting Bain Expert Partner Rob Levy for an energizing discussion on this critical topic. Top R&D KPIs Every SaaS Company Should Track & Benchmark. Top R&D KPIs Every SaaS Company Should Track & Benchmark.

Outsourcing Services 59

Outsourcing Services Technical Review CTO Coach Software Review 59

Intercom, Inc.

NOVEMBER 11, 2021

Anytime somebody reaches for a video game or a B2C app or a B2B SaaS offering or any sort of digital “good”, they are seeking some sense of resolution in their life. Path design, performance valuation, and beneficial outcomes. Pillar two is performance valuation. That’s where we come from. The three pillars.

Onboarding 254

Onboarding Sales Hiring Sales Recruiting Underperforming Technical Team 254

OpenView Labs

MAY 26, 2020

Outlined below is a collection of key financial and capital market resources from the week ending 5/15. . The SaaS index alone is up 43% and has hit new all-time highs. Accounting and opacity of non-GAAP metrics aside, we believe SaaS companies are terrific businesses that deserve premium valuations. Financial resources.

VP of Engineering 52

VP of Engineering Marketing Social Media Forecasting 52

Valuize Consulting

AUGUST 24, 2021

Net Dollar Retention (NDR) has quickly become the most important value metric in SaaS organizations and for good reason; NDR provides a clear picture of a company’s overall health and valuation. The crucial work that CSMs do directly impacts your company’s profitability, growth and valuation. Know Your Customer’s Journey.

Retention 52

Retention Metrics Compensation Innovation 52

Valuize Consulting

AUGUST 24, 2021

Net Dollar Retention (NDR) has quickly become the most important value metric in SaaS organizations and for good reason; NDR provides a clear picture of a company’s overall health and valuation. The crucial work that CSMs do directly impacts your company’s profitability, growth and valuation. Know Your Customer’s Journey.

Retention 52

Retention Metrics Compensation Innovation 52

Payrix

MAY 14, 2024

Adam joins Ian Hillis on PayFAQ: The Embedded Payments podcast to discuss the intersection of software and Embedded Payments along with software growth strategy, key performance indicators, and the pivotal role of payments for SaaS companies. You know, Chargebee, they happen to be a really high growth SaaS business. The margin profile?

Payments 130

Payments Payment Services Payment Solutions SaaS Payments 130

Neil Patel

NOVEMBER 9, 2020

Or you could make the mistake of investing too much in the wrong idea, and there goes money, time, and resources down the toilet. For example, HR and finance SaaS vendor Workday bought Scout RFP (a San Francisco startup with a team of 8) for $540 million. The Micro Startup Talent Hunger Games. Key Features. What Does It Cost?

Technical Review 144

Technical Review Payment Methods Acquisition Development Team Review 144

OpenView Labs

MAY 17, 2020

Outlined below is a collection of key financial and capital market resources from the week ending 5/15. . Much like the conclusion that high growth begets high valuations because enterprise SaaS companies have large markets, sticky revenue and have always generated large, predictable cash flows at scale.

Scale 52

Scale Marketing Technical Review Government 52

SaaSOptics

JULY 7, 2021

For many early-stage B2B SaaS companies, this occurs in both their software development efforts and their FinOps. The FinOps team is usually the most under-resourced team in the shop, and especially in a startup, there are always initiatives competing for resources. The result? Sooner or later, you have to pay.

Technical Review 69

Technical Review Software Review Development Team Review Underperforming Technical Team 69

Frontegg

AUGUST 19, 2021

Instant gratification is now a mandatory aspect of SaaS application usage. Software-as-a-Service (SaaS) was a true gamechanger in the software space, but even that is changing fast with the Product-Led Growth revolution. Related: Top 10 PLG Tools for Your SaaS Application. The SaaS Self-Service Model: Maximizing PLG-Enablement.

SaaS Payments 98

SaaS Payments Payment Services Payment Solutions Underperforming Technical Team 98

Baremetrics

JULY 7, 2021

For SaaS companies, success depends highly on using key metrics to track financial growth and enhance visibility into all the key performance indicators. Another major interest is comparing one's growth and performance with other companies in similar SaaS niches. All the data your startup needs 1 What are SaaS financial Benchmarks?

Benchmarks 105

Benchmarks SaaS Payments SaaS Payments 105

SaaSX

MAY 4, 2019

Many SaaS companies go through due diligence in a less-than-ideal state. A while back I wrote about what to expect in SaaS due diligence and provided an interactive institutional readiness report card to help you prepare, but today I want to address the consequences of being unprepared for SaaS due diligence. How painful?

Deferred Revenue 45

Deferred Revenue SaaS Churn Revenue 45

OPEXEngine

SEPTEMBER 9, 2021

In working with hundreds and hundreds of SaaS CFOs over the past 15 years, I’ve noticed that effective and strategic CFOs incorporate accurate benchmarking into the daily business of the company and especially into the budgeting and planning process. . And, our average comp per person in Sales is pretty high compared to comparable companies.

Benchmarks 52

Benchmarks Sales Hiring Headcount Customer Lifetime Value 52

OPEXEngine

FEBRUARY 2, 2021

Last week, FLG Partners , a group of experienced CFOs in the Bay Area, put on a webinar called “Pivoting to SaaS: Best Practices, Lessons Learned, and Case Examples” for traditional software and hardware companies. Dual Strategy , where two lines of business, perpetual license and SaaS, coexist as equal partners.

Telecommunications 52

Telecommunications SaaS Cybersecurity Cloud 52

SaaSOptics

JUNE 15, 2021

You probably didn’t know that Accounts Receivable management in a SaaS business is a lot like playing The Oregon Trail game. In any business, but particularly in a growing SaaS business, there’s a lot of room for error. But the main reason SaaS businesses fail is that they simply run out of money. Allow us to explain. .

Software Review 60

Software Review Payment Features Management Technical Review 60

OPEXEngine

AUGUST 31, 2021

Lauren Kelley, CEO of OPEXEngine , a leading independent third-party provider of SaaS benchmarks, provides a great illustration of tech debt using the analogy of how financial models are constructed. Finding that balance will depend on the stage of business, resource constraints, the competitive landscape, and existing tech debt levels.

Technical Review 52

Technical Review Underperforming Technical Team Software Review Scale 52

OPEXEngine

AUGUST 31, 2021

Lauren Kelley, CEO of OPEXEngine , a leading independent third-party provider of SaaS benchmarks, provides a great illustration of tech debt using the analogy of how financial models are constructed. Finding that balance will depend on the stage of business, resource constraints, the competitive landscape, and existing tech debt levels.

Technical Review 52

Technical Review Underperforming Technical Team Software Review Scale 52