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Dear SaaStr: Which Tactics Always Work to Drive Down Churn, and Drive Up Retention? Big customers should churn less on a net revenue basis (including upsells) than small customers. We already discussed this a bit above, but make driving down churn and drive net retention up a Top 5 company goal. First, measure Churn.
As Checkr follows usage-based pricing, it’s a transactional business that needs to be managed differently than a typical subscription SaaS model since they only earn revenue when the customer is using the product. ” Quickly, Lindsey found that comp plans weren’t aligned with Checkr’s revenue goals and incentives.
Dear SaaStr: How Should I Calculate Gross Dollar Retention For Our Investors? Gross Dollar Retention (GRR) is a critical metric for SaaS businesses, especially when presenting to investors. It tells them how much of your revenue base you’re retaining, excluding any upsells or expansions. moved to a lower-tier plan).
net retention and CAC payback). Q1 Revenue Relative to Consensus Estimates Now let’s dive in to the financial results of Q1 starting with revenue. Beating consensus revenue estimates is the first aspect of a successful quarter. The formula to calculate this is: (Q1 ’25 revenue) / (Q1 ’24 revenue) - 1.
Rise to the next level of recurring revenue. Learn the crucial strategies for building scalable, secure, and seamless recurring payment infrastructure to boost customer retention and fuel growth. Discover how recurring payments are reshaping industries beyond simple subscriptions, driving a $1.5 trillion market.
Beyond the obvious metrics of explosive revenue growth (48% YoY at almost $1B ARR!!) Customer Cohort Durability: 96% Gross Retention While everyone focuses on the 132% Net Dollar Retention, the 96% Gross Retention Rate for customers above $10K ARR is remarkable. Here are the hidden gems: 1.
Former Head of Revenue at BILL and HubSpot Americas leader Michelle Benfer recently joined us on a SaaStr Workshop Wednesday share her insights on one of the most critical roles in any SaaS organization: the frontline sales manager. Driving revenue through acquisition, expansion, and retention. ” 3.
As a new Customer Success Manager (CSM), here’s what you need to know to hit the ground running and make an impact: Understand Your Role’s Revenue Impact — Revenue vs Retention : Customer Success isn’t just about keeping customers happy anymore at most B2B companies —it’s often a revenue-driving function now.
Today, we capture on average approximately 1% of our customers’ GTV as revenue from their subscription to and current usage of our products. ” How ServiceTitan Makes Money From the S-1: “We have two general categories of revenue: (i) platform revenue and (ii) professional services and other revenue.
For SaaS businesses, improving retention is one of the easiest and most effective ways to drive revenue and profits. Achieving your retention goals starts with the right solution. With a clear link between failed payments and customer churn, having a robust failed payment recovery solution isn’t optional—it’s essential.
This ensures you’re proactively driving retention, upsells, and customer satisfaction from the start. Focus on Retention and Expansion The CS team’s primary job is to retain customers and drive expansion revenue. This alignment can drive better retention and faster expansion revenue. But expansion can wait.
HubSpot has twice the revenue (and thus twice the ARPU), but also was founded 6 years earlier. Customer Base : ~258,000 customers across 135+ countries Revenue : $2.63 Customer Base : ~258,000 customers across 135+ countries Revenue : $2.63 Let’s look at where both companies stand today: HubSpot ARR : $2.7B
5 Interesting Learnings: The Core 5: Revenue & Growth Metrics 1. These 4,870 customers likely represent 70%+ of revenue despite being <25% of total customers. International Revenue as a Growth Vector Indicator The Numbers : International revenue represents ~20% of total ($141M of $688M in Q1) The Learning : At $2.6B
Learning #3: The NRR Superpower – This One Metric Can Transform Your Entire Business Here’s a stat that should make every SaaS executive stop what they’re doing: Companies with the highest Net RevenueRetention report median growth that is 83% higher than the population median.
Understanding your decline reason make up can be a game changer when it comes to improving retention and revenue. Download this guide to discover: Why not all decline codes are equal Tailoring your recovery strategy for each decline reason can significantly improve retention.
SaaStr ) And once you have at least a little revenue ($1m-$2m ARR or so), net revenueretention / churn. In the early days, there are probably only 5 metrics that really matter : ARR ARR Growth Rate Burn Rate True Customer Happiness. Probably, measured as NPS (more here: I Was Wrong. NPS is A Great Core Metric.
Here’s what Figma looks like today: 📊 Core Metrics $821M LTM revenue (46% YoY growth) $913M ARR at Q1’2025 91% gross margins (best-in-class) 18% non-GAAP operating margin (profitable!) Revenue Per Customer The Data : 76% of customers use 2+ Figma products, generating 132% net dollar retention.
In the competitive world of Software as a Service (SaaS), generating recurring revenue is essential for sustainable growth. While many strategies involve significant investments in marketing, sales, and technology, there are also effective methods to boost recurring revenue that require minimal financial outlay.
As companies strive to boost revenue, deliver customer value, and stay competitive, they are increasingly embracing the potential of usage-based pricing. However, despite the growing recognition of its benefits, there is a lack of comprehensive guidance o
Top 10 Customers Steady at 10% of RevenueRevenue concentration has always been a small issue at Twilio. It’s ended up being a tough road, with 91% revenueretention and 0% growth. This isn’t easy at scale. #2. NRR Up to 105%, From 101% Mathematically. Before the IPO it lost its largest customer, Uber.
“Retention is the new acquisition,” says Co-Founder and CEO of Insider, Hande Cilingir. Given the fact that customer acquisition costs are increasing sharply, the most efficient way to increase revenue base is getting it out of existing ones.” Customer retention means building relationships with people. That’s huge!
I bootstrapped ZoomInfo to 25 million in revenue. On going multi-product Henry adds, “I think the foundational point is if you want high net retention, you get high net retention in two ways. Even if your net retention is a hundred, itt’s much more difficult to sell $40 million of net new logos.
They prioritize revenue growth, market share and profit maximization differently. Maximization (Revenue Growth) - maximize revenue growth in the short term. Many mid-market software companies price with the goal of revenue maximization, negotiating for the highest possible price in each sale.
Caused by failed payments, this overlooked source of friction quietly erodes both customer retention and revenue. It leads to revenue losses and can be the largest source of churn, yet your company may not be taking it seriously. How is your SaaS business addressing involuntary churn?
Here’s how the two companies stack up on key metrics for their most recent fiscal year: Metric (2024) Figma Adobe Revenue (YoY Growth) $749M (48%) $21.5B (11%) Gross Margin 88.3% Net Dollar Retention 132% NA Customers > $100k ARR 963 NA Figma is about 3% the size of Adobe but growing 4x faster. Non-GAAP Op Margin 17.0%
Meet some of our experts driving this shift for our software partners and see how Embedded Finance can enhance your platform’s revenue, customer loyalty, and growth potential. SaaS businesses that embed financial products are seeing a 2-5x revenue increase per user.
I realized It has been a decade since I’ve updated revenue-per-employee metrics. Revenue per employee spans approximately $200k-$900k. Snowflake is second, pushed by their best-in-class net dollar retention (NDR). In 2013, the average revenue per employee of these companies totaled $200k.
For example, “If our churn rate exceeds 10%, we’ll invest in a dedicated customer success team to improve retention.” Tie Projections to Funding Needs Your revenue projections should align with your funding ask. Acknowledge potential challenges—like longer sales cycles or higher churn—and explain how you’ll address them.
Speaker: Igor Stenmark, Andrew Dailey, &Youssef Yaghmour
Unleashing Usage-Based Pricing to Drive Growth, Customer Satisfaction and Retention: The Why’s, How’s and Roadmap Practical Steps to Making Consumption Pricing Models Simple As companies strive to boost revenue, deliver customer value, and stay competitive, they are increasingly embracing the potential of usage-based pricing.
revenue run-rate this quarter with 50% YoY growth, making them the fastest-growing infrastructure company in the public software universe. revenue run-rate ending this quarter, growing 50% year-over-year. billion revenue run-rate by July, with year-over-year growth of 50%. in net new revenue this year. Three things: 1.
Quick Stats: Founded: 2005 (20-year-old company) 2024 Revenue: $285M (up 25% YoY from $228M in 2023) Q1 2025 Revenue: $80.7M (up 21% YoY), $323M annualized run rate Profitability: $1.8M It’s a signal that vertical SaaS platforms with sticky revenue are back in favor with sophisticated buyers. revenue, with average at 6.0x
500k in revenue per employee at $2 Billion in ARR, and profitable. But with everyone discussing PLG, there just isn’t enough discussion in B2B of Product-Led Retention. But our B2C friends obsess about Product-Led Retention. But that’s not really Product-Led Retention. What if we just add a Free edition?
How do you leverage your customer success team to drive revenue growth? Hook’s Head of Customer, Natasha Evans, took the stage at SaaStr Europa to discuss the three things leaders should focus on to fuel revenue growth. It will help drive revenue growth, which is the name of the game.
The platforms that move first are seeing 70%+ revenue uplifts and dramatically improved retention. But the window for being early won’t last forever. Embedded finance isn’t just a feature – it’s becoming a core part of how the best SaaS companies monetize and retain customers.
The metrics are very strong: $2B ARR (run rate — but not really software revenue) Generated from $121B in transactions on platform Growing 23% $251 ARPU 88% Gross Margins Average customer uses 3.3 But if it lands around $9 Billion, that’s less than 5x revenues. And a good comp for Ramp, Brex, and others. million in Q1 2025.
Dear SaaStr: How Do I Do My Retention Negotiation in an Acquisition? A few thoughts on retention compensation when you are acquired. Second, understand there are both carrots and sticks that acquirers can employ, and that the retention may involve a combination of both. Extra payments if your business hits $YYm in revenues.
And … 92% of its revenue is from subscriptions. Today, Gartner has now crossed $6 Billion in revenue, with a stunning $35 Billion market cap. 92% of Revenue is Recurring If you’ve bought Gartner research, you know this. A lot of “pseudo SaaS” doesn’t see this type of revenueretention.
Time-to-value plummeted Expansion revenue became almost automatic Sales cycles got more honest and efficient The 5 Things We Learned About Customer Success at $100M+ ARR Sales actually exaggerates. Most founders wait way too long here. But the results? Shocking, I know.
Building a commission plan for Account Managers (AMs) is a bit different than for AEs (Account Executives) because AMs are typically focused on retention, expansion, and upsells rather than net-new sales. The variable portion should be tied to measurable outcomes like net retention, upsell revenue, and customer satisfaction.
Per company metrics, Lovable hit $50 million in revenue in just six months, Cursor reported $100 million in revenue in its first year, and Gamma reached $50 million in revenue on less than $25 million raised. The median time from first dollar of revenue to Series A has compressed from 12-18 months to 9 months.
You can also see that start-ups overall spend about 7% on revenue on customer success, so that ties closer to $2m ARR per customer success rep: If you’re targeting $1M in ARR per CSM, that’s **50 customers** at $20,000 ACV. A good benchmark is for each CSM to manage $1M to $2M in ARR, depending on your growth stage and resources.
Theyll focus on driving net revenueretention and building a scalable CS function. Customer Success : As you approach $10M ARR, youll need a full CS team to handle onboarding, renewals, retention and upsells. If youre targeting SMBs, you might also need a growth hacker to optimize funnels. AI can’t do it all.
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