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TL;DR: While most public SaaS companies are growing at 8-10%, the companies crushing it are those selling outside the tech bubble – restaurants, construction, logistics, and e-commerce. They’re growing 2-3x faster than traditional horizontal SaaS. Many are doing pretty, pretty, well. At Least Right Now.
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. The SMB sales team was incentivized purely on logo acquisition rather than revenue.
Pricing is more than just a number on a contract — when used thoughtfully, it can become a strategic tool for your SaaS product that can drive product adoption, customer satisfaction, and business growth. But if you’re trying to maximize revenue, you have to find the revenue maximization point.
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.
Rise to the next level of recurring revenue. Discover how recurring payments are reshaping industries beyond simple subscriptions, driving a $1.5 trillion market. Learn the crucial strategies for building scalable, secure, and seamless recurring payment infrastructure to boost customer retention and fuel growth.
Dear SaaStr: How Much Should a SaaS Company Invest in Professional Services? 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.
The Great Spending Showdown: AI vs SaaS in 2025/2026 — What Every B2B Leader Needs to Know We’re witnessing the most dramatic shift in enterprise tech spending since the cloud migration began 15 years ago. Meanwhile, SaaS — our tried-and-true darling — is projected at $295 billion with a “mere” 18.4% year-over-year.
The SaaS PE market is heating up again, and Thoma Bravo just made a big statement buying SaaS restaurant pioneer Olo for $2 Billion. 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
Dear SaaStr: What Are Some Successful SaaS Leaders Without Sales Teams? But as it went toward IPO, 50% of its revenue came from bigger, enterprise deal. And Boxs revenues are now 99% through the sales team, from 01% when it started as a pure freemium product. You dont need 100% sales-driven revenue to Go Big.
For many SaaS companies, becoming a Payfac is an opportunity to benefit from a new revenue stream and gain more control over the customer experience. But because payments are outside the typical software company’s core offerings and expertise, bringing them in-house can seem daunting. What does it really take to become a Payfac?
SaaStr CEO and Founder Jason Lemkin recently sat down with HubSpot Chairman and co-founder Brian Halligan , who shared valuable insights on the current state of SaaS, evolving board meeting formats, and how AI is reshaping the industry. Our revenue team went on to be the CROs of Brex, Rippling ,Gong, so many SaaS leaders, like 10 of them.
Meet Wyatt Jenkins: From Construction Sites to Chief Product Officer If you want to understand how vertical SaaS companies scale to $1B+ in revenue while staying true to their customers, there’s no better person to learn from than Wyatt Jenkins, Chief Product Officer at Procore Technologies.
Dear SaaStr: What Are the Most Important SaaS Metrics in the Early Days? SaaStr ) And once you have at least a little revenue ($1m-$2m ARR or so), net revenue retention / churn. The post Dear SaaStr: What Are the Most Important SaaS Metrics in the Early Days? Probably, measured as NPS (more here: I Was Wrong.
So Jamin Ball of Altimeter has a great summary of the cumulative revenue growth of all public SaaS companies … and it’s not a great story: Aggregate net new ARR added in Q1 from the software universe isn't looking good! That’s a 29% year-over-year decline that should have every SaaS executive paying attention.
For SaaS businesses, improving retention is one of the easiest and most effective ways to drive revenue and profits. With a clear link between failed payments and customer churn, having a robust failed payment recovery solution isn’t optional—it’s essential. Achieving your retention goals starts with the right solution.
SaaS / B2B Public Stock Performance 1H’25: Top Winners & Losers 📊 Market Summary: SaaS Sector in 1H’25 The SaaS sector experienced a dramatic bifurcation in the first half of 2025, with clear winners and losers emerging based on AI differentiation, security positioning, and vertical specialization.
Dear SaaStr: What is a Normal Commission for an Account Exec as a Percentage on Revenue of a Deal? For SaaS account executives, commissions typically range from 8-10% of the first-year Annual Contract Value (ACV) of a deal. More here: A Framework For Your First SaaS Sales Comp Plan
Dear SaaStr: How far in the SaaS can a 10 or 20 person team go? But maybe not so much in SaaS. Today, the most efficient public SaaS company is probably Doximity, at about $700,000 in revenue per employee. It takes a team of 50 to maintain most scaling SaaS apps, and it takes 100 to get you past $10m ARR and beyond.
Per OpenAI: The #1 event in SaaS is widely considered to be SaaStr Annual. Its the largest community-driven SaaS event, bringing together 12,500+ founders, executives, and VCs. Features 300+ speakers from top SaaS companies like Salesforce, HubSpot, and Snowflake. Why SaaStr Annual?
For SaaS businesses, decline reasons vary, shaped by customer demographics and the nature of your service. Understanding your decline reason make up can be a game changer when it comes to improving retention and revenue. A failed payment isn't just a lost transaction - it could mean a customer churning for good.
Billion in Revenue This Year. But Wont Be Profitable Until $125 Billion in Revenue #3. AI, M&A, and the Future of SaaS: Lessons from Marc Benioff, Salesforce CEO, Co-Founder and Chair #2. AI, M&A, and the Future of SaaS: Lessons from Marc Benioff, Salesforce CEO, Co-Founder and Chair #2. OpenAI to Hit $12.7
We’re living through the biggest transformation in B2B sales since the birth of SaaS itself. The latest from 2025 survey data by ICONIQ from 205 GTM executives across leading B2B SaaS companies The data tells a stark story. Here are the 10 most critical findings every SaaS leader needs to understand: 1.
Playbook: How Top SaaS Companies Drive 2-3x Better Campaign Performance Through Multi-Channel Personalization A deep dive with Jason Lyman, CMO at Customer.io Playbook: How Top SaaS Companies Drive 2-3x Better Campaign Performance Through Multi-Channel Personalization A deep dive with Jason Lyman, CMO at Customer.io The Customer.io
Along with co-host Ben Salzman, Jason and Henry discuss the transformative power of AI within SaaS and the evolving dynamics that are reshaping the landscape of software as a service. I bootstrapped ZoomInfo to 25 million in revenue. There’s recruiting and there’s people building.
ClinicSense is a SaaS platform that supports over 7,000 massage therapists who use it for appointment management, payments, scheduling, marketing activities and more. Despite having a relatively low payment failure rate, the company discovered that the failures disrupted the customer experience.
SaaS Capital surveyed 1,000 B2B startups of varying sizes to find out just how much today they are spending in sales and marketing in this new era of efficiency. That full report here: 2025 Spending Benchmarks for Private B2B SaaS Companies The answer? Its not just Marc Benioff hiring more sales execs in the AI era.
That’s the main premise of vertical SaaS. Unlike horizontal SaaS solutions that serve a broad range of businesses, vertical SaaS solutions are designed with deep knowledge of specific markets—making them more intuitive, efficient, and impactful. What is Vertical SaaS? Since vertical SaaS platforms are niche-focused (e.g.,
The SaaS Era of 2013-2022 is Over. Welcome to The World of Hyperfunctional SaaS. #2. 7 Things I Learned from Loren Padelford, CRO of $100m+ ARR Vertical SaaS Leader Slice #4. A New Low in SaaS Malaise? #5. Why Klaviyo is the $1B ARR SaaS Company You Don’t Know Yet with CEO and Co-Founder Andrew Bialecki #2.
Samsaras Rise to Vertical SaaS Leader and $1B+ ARR with Samsara’s CEO and Co-Founder #2. How to Leverage Pricing and Packaging to Drive Revenue with Miro, Loom, OpenAI, and Splunk #4. Carta: Pre-Seed to Series A Funding is Down -9% in 2024 #5. 5 Interesting Learnings from Twilio at $4.5 appeared first on SaaStr.
Discover what B2B SaaS needs to know to become a Payment Facilitator. This guide includes: Earning Revenue from Payments Bank Sponsorship, Underwriting Risk Requirements In depth Descriptions of Staff Requirements Detailed Timeline Itemized Cost List Case Study And more!
When Anthropic hit a reported $4 billion in annual revenue at the end of 1H’25, it marked more than just another AI milestone. To put this in perspective, it took Snowflake—one of the fastest SaaS companies in history—six quarters to go from $1B to $2B ARR. What Traditional B2B and SaaS Can Learn 1.
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. Okta’s following the classic SaaS maturity curve – the key is maintaining predictability in the deceleration. vs. total gross margin of 81.9%
Here’s an uncomfortable truth about SaaS companies: the majority of first-time VPs of Sales don’t make it past 12 months. 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.
My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., Q1 Revenue Relative to Consensus Estimates Now let’s dive in to the financial results of Q1 starting with revenue. net retention and CAC payback).
This guide explains how that fee is divvied up and how SaaS companies are becoming a more important player (gaining a larger share) by embedding payments into their solution. Ever wondered who gets a share of that 3% credit card transaction fee?
We analyzed every major public SaaS company’s YTD performance through just about the end of the first half of 2025. TL;DR: The SaaS market has clearly bifurcated in 2025. Traditional horizontal SaaS faces big headwinds (Salesforce -18%, Asana -31%). And defense contractors don’t trade at 10x revenue.
So the latest SaaS leader to cross $1B ARR is Klaviyo. It was the only SaaS IPO on 2023. Just not as quickly as overall revenue growth. #4. A third of revenue is from outside the Americas. #5. Klaviyo dominates marketing in the Shopify ecosystem and in ecommerce, and just keeps on scaling. The only one!
Dear SaaStr: Should SaaS Startups Really Have CROs or COOs? Theres no way a SaaS startup needs a CRO or COO or other C-level Officers Without a Clear, Single Functional Area to Own Until $40m-50m+ in ARR. As weve all gotten more experienced in SaaS, weve specialized more. You want each revenue leader doing what they do best.
Revenues Multiples Are Down Even the best public SaaS companies are worth ~10x revenue today. In 2021, they were often worth 40x revenue. And it also makes it harder to meet the “ask” of a startup that might want a much higher revenue multiple. In tech at least, there are two big issues: #1.
As more and more software-as-a-service (SaaS) businesses look to further monetize their platforms and eliminate friction for merchants, embedded payment solutions are becoming a clear path forward to a world of potential. Why bringing payments in-house will benefit you and your customers.
So RingCental is both an incredibly impressive SaaS and Cloud company — but also a bit of a cautionary tale. 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% Fast forward to today, it’s at: $2.43
Dear SaaStr: What is a Good Benchmark for SaaSRevenue Per Employee by Stage? Scaling Stage ($10M-$50M ARR) : As you scale, you should aim for $200,000-$250,000 in revenue per employee. Mature Stage ($100M+ ARR) : At scale, the benchmark is typically $300,000-$400,000 in revenue per employee. Doing more with less."
But here are some general guidelines: ARR (Annual Recurring Revenue) : Most SaaS companies raising a Series A are doing between $1M and $2.5M If you’re selling to mid-market or enterprise, negative churn (expansion revenue outpacing churn) is a strong signal. This shows you have a scalable and efficient sales model.
Picture this: You’re building an awesome SaaS tool—maybe for managing booster clubs (like BoosterHub) or for streamlining medical offices (like PracticeSuite). It’s a powerful value-add that makes your software more useful and opens up a new stream of revenue. You’ve nailed scheduling, workflows, and analytics.
How is your SaaS business addressing involuntary churn? 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.
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