SaaStr

AUGUST 5, 2024

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.

Scale 245

Scale Customer Success Scaling Revenue 245

SaaStr

JUNE 26, 2023

Some examples: HubSpot gets 54% of its revenue from outside the U.S. Asana gets 39% of its revenue from outside the U.S. Monday gets 47% of its revenue from outside the U.S. Zendesk gets 49% of its revenue from outside the U.S., The top quartile have 28% of their revenue from EMEA/Europa, and the median is 19%.

Sales Hiring 295

Sales Hiring Revenue SaaS Scale 295

SaaStr

DECEMBER 4, 2024

So, you should think about it the same way and use it intentionally to drive growth, revenue, or whatever else, but think about it more than something you set at once and forget. But if you’re trying to maximize revenue, you have to find the revenue maximization point.

Payments 205

Payments Pricing Scale Revenue 205

SaaStr

SEPTEMBER 29, 2024

Dear SaaStr: How Do I Set the Revenue Goals for Next Year? Here’s how to build them: The 3 Financial Plans You Need for The Year: C-90, C-60 and C-10 (Updated) The base plan, the plan I use for the overall sales and revenue goals, is the C-60 plan. The post Dear SaaStr: How Do I Set the Revenue Goals for Next Year?

Revenue 218

Revenue Banking Sales Marketing 218

SaaStr

SEPTEMBER 28, 2024

Kyle Norton CRO of Owner is kicking off a new podcast for Pavillion with revenue leaders, and we were lucky enough to be guest #001 here: It’s a great convo on many SaaStr themes — but from the perspective of a VP Sales / CRO. Never play the blame game As a revenue leader, it’s crucial we take accountability for sales performance.

Technical Review 241

Technical Review Sales Hiring Sales Recruiting Revenue 241

SaaStr

OCTOBER 4, 2024

In today’s dynamic SaaS landscape of hyperfuncational SaaS, the journey of building a product that customers adore, while simultaneously scaling revenue to nearly $1B, is still quite a feat. What matters is the dollars and amount of revenue that the campaign drove. click-through rate, they are a hero for driving actual revenue.

Revenue 281

Revenue Scale Underperforming Technical Team Sales Hiring 281

SaaStr

SEPTEMBER 27, 2024

The three growth tactics that worked for Rippling can be categorized into three different stages: Outbound Increasing closed-won revenue rates Serving customers and expanding revenue in the base Let’s start with outbound, where most of Rippling’s revenue comes from attribution-wise. As Account Managers, they only owned revenue.

Scale 266

Scale Sales Hiring Revenue Scaling 266

Payrix

NOVEMBER 13, 2024

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.

Payments 130

Payments Finance Payment Solutions SaaS Payments 130

SaaStr

NOVEMBER 30, 2024

They know they’ll need an ever-expanding team to hit compound revenue targets—2 reps, then 4, then 8, then 16, and eventually 64 or more. The 90-Day Revenue Test While 30 days is enough to evaluate their hiring decisions, you should see clear revenue improvements within 90 days (or one full sales cycle).

Sales Hiring 282

Sales Hiring Sales Recruiting Sales Headcount 282

Tom Tunguz

AUGUST 9, 2022

In 2020, revenue growth was the most important factor explaining a public software company’s forward multiple. Net income has surged to the highest correlate of a public software company’s multiple surpassing revenue growth. Revenue growth diminishes to 0.61 The formula has changed since then. Net income surges to 0.71

Software 363

Software Revenue Metrics Sales 363

Clouded Judgement

JUNE 14, 2024

So not only would Twilio be undercharging relative to the value I’m receiving, but Twilio would also be incurring incremental marginal costs that they’re not recognizing revenue for. Revenue multiples are a shorthand valuation framework. Overall Stats: Overall Median: 5.1x Top 5 Median: 14.1x Bucketed by Growth.

Cloud 342

Cloud Pricing AI Software 342

SaaStr

NOVEMBER 13, 2024

Just not as quickly as overall revenue growth. #4. A third of revenue is from outside the Americas. #5. But it’s clear that it’s still in the investing phase, and increasing spend in sales & marketing.

Scale 271

Scale SMB Scaling Enterprise 271

Clouded Judgement

JUNE 19, 2024

The charts below show the change in quarterly revenue YoY (so Q1 ‘24 rev - Q1 ‘23 rev) going back to 2017. 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.

Cloud 312

Cloud GCP(Google Cloud Platform) Software Azure 312

SaaStr

NOVEMBER 8, 2024

So we ran a similar survey , and it showed similar results — so far at least: As you can see above, only 3% of you have generated real revenue from AI SDRs. Tons of B2B companies deploying AI SDRs already, but few deals closed so far. 83% of you haven’t gotten anything from AI SDRs.

AI 304

AI B2B Engineering Customer Support 304

Clouded Judgement

MARCH 1, 2024

Revenue multiples are a shorthand valuation framework. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. EV / NTM Rev / NTM Growth The below chart shows the EV / NTM revenue multiple divided by NTM consensus growth expectations. Overall Stats: Overall Median: 6.2x

Cloud 311

Cloud AI Investment Metrics 311

USIO

MAY 16, 2024

Increased Revenue: Offering seamless payment solutions can boost conversion rates and customer retention. Ask about revenue share opportunities. For B2B software companies and some B2C, there can be revenue share depending on the volumn being processed. Why should my software company consider integrating payments?

Payment Services 263

Payment Services Payments Merchant Services Payment Solutions 263

SaaStr

DECEMBER 13, 2023

Revenue Growth Has Materially Slowed, From 48% a Year Ago to 19% Today. It came from big cuts, especially in sales & marketing, which in just 1 year went from 26% of revenues to 21%. In 2021, just 10% of their revenue was from outside the U.S. 72% of nCino’s revenue is from existing customers. #8.

Scale 307

Scale Banking Acquisition Cloud 307

SaaStr

OCTOBER 25, 2024

A rough yardstick is that most enterprise-focused SaaS companies tend to get about 8%-10% of their revenues from professional services. A few data points: At $800m ARR, Qualtrics was still getting 25% of revenue from professional services. At $500m ARR, OneStream gets about 8% of its revenue from professional services.

Investment 245

Investment SaaS SMB Enterprise 245

Clouded Judgement

JULY 12, 2024

I believe this sums up a lot of the debates around “too much capex too little revenue.” I also think looking at AI “ software” revenue over the course of time will drastically understate its impact. Obviously it’s both, but framing it as one other the other looks at revenue generated vs costs saved.

Cloud 282

Cloud AI Investment User Experience 282

SaaStr

JANUARY 31, 2024

63% of Revenue from North America Global revenues are slowly creeping up as a percent of total. #7. 440,000 in Revenue Per Employee ServiceNow is very efficient, handily exceeding the $300,000 or so average revenue per employee for the average public SaaS company. And a few other interesting learnings: #6.

Enterprise 286

Enterprise Scaling Churn Engineering 286

Clouded Judgement

MARCH 29, 2024

Revenue multiples are a shorthand valuation framework. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. EV / NTM Rev / NTM Growth The below chart shows the EV / NTM revenue multiple divided by NTM consensus growth expectations. Overall Stats: Overall Median: 6.4x

Cloud 278

Cloud Forecasting Subscription Payment Features 278

Tom Tunguz

JUNE 1, 2024

Weaker revenue projections tend to cause sell-offs. Future revenue ramps have been the dominant driver of software valuations for the vast majority of the last decade. Some context is helpful : during the same period, total software revenue across the public companies grew from $124b to $592b. In 2016, valuations fell 57%.

Software 262

Software Marketing Revenue Business 262

SaaStr

DECEMBER 10, 2023

On his journey from Marketer #1 to Gong’s Chief Marketing Officer, he led the creation of the revenue intelligence category, pioneered an iconic, human-centric brand, and led Gong’s Marketing efforts from zero to hundreds of millions in revenue. This week we have Udi Ledergor, Chief Evangelist at Gong! #1.

Leadership 310

Leadership B2B Branding Revenue 310

SaaStr

OCTOBER 16, 2024

Even With a Big Enterprise Push for Years, 60% of Revenue Still From Mid-Market and SMB RingCentral closed 20 $1M+ TCV deals last quarter. of revenue in 2021 to 15.7% 16,000 Channel Partners A very large percent of RingCentral’s revenue comes from the channel. Fast forward to today, it’s at: $2.43

Scale 250

Scale SMB Compensation AI 250

SaaStr

NOVEMBER 21, 2024

In many cases, it’s now part of the revenue team, and bringing in more revenue is Goal #1. SaaStr 2025 is May 13-15✨ Lemkin (@jasonlk) October 2, 2024 So we’ve talked a lot on SaaStr about how Customer Success has changed over the past 24 months.

Customer Success 271

Customer Success Revenue Sales Data 271

Clouded Judgement

AUGUST 16, 2024

The incremental market cap created by this shift could be enormous, as more revenue is reclassified into higher-multiple software categories rather than lower-multiple services categories. GenAI will empower companies to do more with software than ever before, paving the way for long-term market expansion, both in revenue and market value.

Outsourcing Services 269

Outsourcing Services Cloud Software Outsourced Development 269

SaaStr

DECEMBER 20, 2023

Canva: – Almost $2B ARR – Growing 40%+ – Profitable And … 4,000 employees That's about $500k in revenue per employee That's where software really makes money — Jason ✨Be Kind✨ Lemkin  ?? 4,000 Employees, So About $500,000 in Revenue Per Employee That’s very efficient.

AWS 268

AWS B2C Scaling AI 268

SaaStr

MAY 25, 2023

Because the reality is, acquisition offers at a decent price — as measured against revenue, time, and effort — actually come at distinct phases of your company’s lifetime. Here’s what happens: Pre-Revenue – You Aren’t Interesting. Even if you don’t have nearly the revenue of the next guy.

Acquisition 361

Acquisition Venture Capital Scale Generative AI 361

Clouded Judgement

DECEMBER 1, 2023

” Quarterly Reports Summary Top 10 EV / NTM Revenue Multiples Top 10 Weekly Share Price Movement Update on Multiples SaaS businesses are generally valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months. Revenue multiples are a shorthand valuation framework.

AWS 293

AWS Cloud AI Search Cost optimization & reporting 293

Clouded Judgement

AUGUST 30, 2024

Quarterly Reports Summary Top 10 EV / NTM Revenue Multiples Top 10 Weekly Share Price Movement Update on Multiples SaaS businesses are generally valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months. Revenue multiples are a shorthand valuation framework. Top 5 Median: 14.8x

Cloud 269

Cloud Venture Capital AI Startup 269