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Every week I’ll provide updates on the latest trends in cloud software companies. Subscribe now Net New ARR Trends We’re about halfway through Q1 ‘25 earnings season. Unfortunately, the trends have not been good! Follow along to stay up to date! For some public companies, they disclose ARR.
The trend has been building for over a year, with growth rates oscillating wildly between massive spikes and devastating drops. Customer Success Is Make-or-Break : With new customer acquisition becoming more challenging, retention and expansion within existing accounts becomes critical. We knew that.
Here are the trends across the group of 13 publicly traded software & infrastructure companies (which are the fastest growers or most-highly valued) over the last 5 quarters. Snowflake is second, pushed by their best-in-class net dollar retention (NDR). I wonder what trends we’ll see in 2033.
Again, NRR (over NPS, CSAT, logo retention) seems to be the core North Star metric for CS today, irrespective of the amount of variable comp. In these models, companies need to have a way to control the quality of new deals; one company measures sales team members based upon the “quality” (adoption/retention) of their new deals.
net retention and CAC payback). Subscribe now Overall Trends When looking at the aggregate net new ARR added in Q1, it doesn’t pain the best picture. On the other hand, if your net revenue retention is 120%, you only need to grow new logo revenue 10% to be a “high growth” business.
Improving Rev Ops for Data-Driven Decision Making One of Lindsey’s first priorities was diving deep into the company’s existing data to identify trends and leverage these findings for growth. The results speak for themselves – Checkr now maintains incredibly strong retention rates with GRR in the high nineties.
Net Retention Compression: From 122% to 106% The Numbers : NRR dropped from 122% (Q2 FY23) to 106% (Q1 FY26) – a 16 point decline over 3 years The Learning : Plan for 4-6 points of NRR compression annually once you hit $1B+ ARR. The Learning : At scale, customer count growth in your premium tier matters more than total customer adds.
Still, one of the top mistakes every top founder says is this: “I Should Have Acted on Bad Trends Earlier.” But if your churn and retention numbers aren’t at least mid-pack for your category, don’t let it lurk. ” Let’s make a list: #1. Churn is a problem that lurks, especially in annual deals.
However, in Asia, retention for monthly subscriptions is notably lower at 75%. That said, there’s a silver lining: While monthly retention in the EU and North America remained stable from 2023 to 2024, Asia’s monthly retention rate improved by approximately 3%, showing positive momentum.
ARR with 50% growth at that scale 500+ customers consuming at over $1 million annual revenue run-rate 80%+ subscription gross margins (infrastructure companies dream of margins like this) Free cash flow positive for the first time 140% Net Revenue Retention (top decile performance) Growing Twice as Fast As Comps When you’re doing $3.7B
Success requires: AI-driven innovation Laser-focused value propositions Rapid time-to-value strategies By understanding and adapting to these emerging AI trends, go-to-market teams can transform these trends into opportunities for growth and customer retention.
At the IMPACT Summit yesterday, I shared our Top 10 Trends for Data in 2024. Looking at Snowflake’s net dollar retention over the last few years, it’s clear exactly when the office of the CFO became an important voice within the data world. LLMs Transform the Stack : Large language models transform data in many ways.
To keep up with these changes, last year we released our first Intercom Customer Support Trends Report. If you help and encourage your team, they can drive retention and expansion, and you’ll see the benefits in your bottom line. We have just published the second edition of the Intercom Customer Support Trends Report.
” The company grew from $15M in ARR to more than $1B with this model, consistently achieving better than 130% net dollar retention. With this model, Twilio maintained contracted revenue at less than 50% of ARR while achieving industry-leading retention metrics. The ratio of AI price to base price ranges from 0.32
This vertical focus aligns with broader trends in re-industrialization and supply chain resilience. Net Dollar Retention Hit 124% – Signs of Long Team Durable Growth Palantir’s net dollar retention rate of 124% in Q1 2025 indicates that existing customers are significantly expanding their usage year-over-year.
Align sales comp with net revenue retention, not initial ACV 3. Variable pricing models are becoming the norm The Strategy : Design your pricing to start small with automatic expansion based on usage. Google Is Losing to AI Search + Software Reviews: 29% of buyers start research with AI search more than Google.
” So what 2025 customer success trends can we anticipate? Trend 1: Customer teams strengthen their revenue focus. Businesses need to focus on three metrics at the same time: acquisition, retention and customer lifetime value. Trend 2: AI and automation become transformative. Its a bumpy road to the top.”
Most of the app sales and net retention comes from deploying software and tech-driven features that have 100% gross margin. The post The State of SaaS – Global Data Trends from 1000+ Companies with Capchase Co-Founder/CEO Miguel Fernandez and 01 Advisors VP Kristen Clifford (Video) appeared first on SaaStr.
As customer success came into its own, it was often seen as distinct from account management, focused on customer retention and happiness and NPS and CSAT. Just a few bits of advice here: Focus as much on New Net Customer Growth and Logo Retention / GRR as NRR. I don’t love this trend. To get that integration working?
Revenue Quality Score What It Is : Percentage of revenue that’s recurring, predictable, and expanding The Benchmark : 85%+ should be recurring with 110%+ net retention Why It Matters : Public investors pay premiums for predictability. at $47-55 range, priced at $40 Current Performance : +250.4%
Company Snapshot: Founded : January 2014 (11 years) Current ARR : $1.09B+ (Q1 FY2025) Growth Rate : 39% YoY ARR growth, 47% revenue growth NPS Score : 80 (exceptionally high for enterprise software) Net Revenue Retention : 133% (as of Jan 2024) Customers : 2,246 customers with $100K+ ARR contracts IPO : April 2024 on NYSE (RBRK) at $5.6B
Having high net revenue / dollar retention is the magic of SaaS. Second, measure logo retention as often as your do NRR. Strive for 90% logo retention in general wherever you have 120%+ NRR. Third, remember to segment your NRR and logo retention by deal size. But … high NRR can also mask issues. I see this so often.
Ramp published its quarterly spending trends & revealed how businesses are spending on AI. 1 However, this isn’t a uniform trend. 1 However, this isn’t a uniform trend. There are many great data points that underscore the growth in AI but there are important nuances in the patterns. NDR is almost equal.
Every week I’ll provide updates on the latest trends in cloud software companies. Follow along to stay up to date! Companies with negative NTM FCF are not listed on the chart Scatter Plot of EV / NTM Rev Multiple vs NTM Rev Growth How correlated is growth to valuation multiple?
In this post, we’ll take you through 10 mobile app development trends and the mobile app development changes shaping 2025. Mobile app development trends In 2025, app developers are moving quicker, using smarter tools, and finding easier ways to create better experiences for users across all kinds of mobile devices.
The trend is clear: embedding payments is a smart monetization strategy that’s become table stakes for platforms that want to grow fast. According to Goldman Sachs and Fast Company , platforms like Bill.com and AvidXchange generate over 60% of their total revenue from payments, not software fees.
Which in-app behaviors correlate with long-term user retention? How to use it: Break the complete user journey into stages: Acquisition, Onboarding, Activation, and Retention. So you can measure retention, feature adoption, or conversion rates across time and compare how different user segments respond to in-app changes.
Get real-time insights into your survey responses, with visual breakdowns of data, NPS score, and trends. Track NPS scores over time with clear visualizations that display feedback trends. Monitor and analyze feedback with detailed reporting tools that provide customer insights into trends over time.
Every week I’ll provide updates on the latest trends in cloud software companies. It might also boost sales forecasting accuracy by using your enterprise’s historical transaction data to predict future trends more reliably. Follow along to stay up to date!
Transparency in financial transactions correlates with higher vendor retention rates. Enhancing Vendor Relationships with Data Insights Digital disbursement platforms often come equipped with analytics tools that provide valuable insights into payment trends. This level of clarity reduces uncertainty and builds trust.
Join the Payments-Led Growth Movement Sign up to keep up-to-date with the latest trends in payments, vertical SaaS, and technology from industry experts. Benefits of Vertical SaaS The growth of the vertical SaaS industry continues to follow an upward trend. There will always be new trends and opportunities in the dynamic world of SaaS.
Every week I’ll provide updates on the latest trends in cloud software companies. This is now an important trend to watch in the application software space. Follow along to stay up to date! Subscribe now You Own Your Data…Or Do you? But what if the data you think you have… you actually don’t?
Every week I’ll provide updates on the latest trends in cloud software companies. We’ll see how these consensus estimates trend over the year, but the initial guides out of the gate do not inspire confidence that 2025 will be a year of out performance. Follow along to stay up to date! The median full year guide is only 0.1%
The unpredictable market has given rise to new trends and a new type of elite company, which Bessemer Venture Partners have dubbed the Centaur. Five Trends Driving Bessemer’s Love for the Cloud in 2022. Prioritize customer retention and growth to accelerate revenue. . Indirect Monetization Becomes the First Act.
This would allow deeper insights into user retention, feature adoption, and upsell opportunities. For this, these companies often invest in predictive analytics to anticipate trends, perform experiments, and ideate more features for the product roadmap. Tracking in-app events with Userpilot.
This should trend up a bit over the coming years, given how larger customers are fueling outsized growth. #3. Once they added a sales team, NRR and cohort retention went way, way up: The post 5 Interesting Learnings from Monday.com at $240,000,000 ARR appeared first on SaaStr. But bigger customers fueling the most growth.
Every week I’ll provide updates on the latest trends in cloud software companies. Follow along to stay up to date! Subscribe now M&A is Back! We’ve seen a ton of M&A in the first quarter of the year. Will the floodgates open? Probably depends on whether the deals make it through regulatory approval.
Some deceleration in net retention. But net retention, while strong, has declined from 135% to 125% over the past 5 quarters. But we’ve seen many SaaS and Cloud leaders manage to maintain consistent net retention at $1B+ ARR. Not a new trend, but something to remember. This one is a bit unexpected. Competition?
Every week I’ll provide updates on the latest trends in cloud software companies. Follow along to stay up to date! Subscribe now The Fed Bomb The markets were enjoying a nice little Santa Claus rally until this Wednesday when the Fed decided to shake things up!
Every week I’ll provide updates on the latest trends in cloud software companies. Follow along to stay up to date! Subscribe now Cost of Intelligence It continues to shock me how quickly the cost of tokens (ie intelligence) has dropped.
The trends indicate that there is an influx of spending on solutions that make remote work more simple. Reduced friction in the software buying process is a trend that has already been building momentum over the years. Takeaway #3: More Than Ever, Retention is Your Foundation For Growth. Invest heavily in retention marketing.
5G, the Internet of Things, AI and Machine Learning, Wearables, Virtual Reality…these buzzwords are dominating the world of tech as the technologies they represent drive global cultural and business trends. By Karen Rubin, Owl Labs Chief Revenue Officer.
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