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Most SaaS Metrics Really Only Work if You Have 75%+ Gross Margins and 100%+ NRR

SaaStr

So over the past decade-and-a-half we’ve come up with a lot of yardsticks, metrics and rules for SaaS companies. But — they are broken if you aren’t really a traditional, 100%+ NRR SaaS company. In particular: Hybrid SaaS with payments and fintech usually has far, far lower gross margins than pure software. It depends.

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5 Interesting Learnings From Bill at $1.2 Billion in ARR

SaaStr

Well, fast forward to today and it’s truly an SMB powerhouse. How is SMB SaaS doing today? Transaction Fees Growing Far Faster (38%) Than Software / SaaS License (21%). Both Bill and Shopifty have morphed over the years from almost pure SaaS companies to payments platforms built on top of a SaaS core.

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5 Interesting Learnings from Toast at Almost $800,000,000 in ARR

SaaStr

Toast isn’t accelerating the way some SaaS leaders are, but still, 59% growth at $800m in ARR is something a few years back we would never have thought possible. #2. SMB sales (most of Toast) is very tough to do without a highly efficient and effective sales force. As the brand scales, they get more of a boost from inbound. #5.

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5 Interesting Learnings from Lightspeed Commerce at $750,000,000 in “ARR”

SaaStr

One leader in SMB commerce is Lightspeed Commerce, founded way back in 2005. And their mix of software, payments and hardware revenue drives up the total deal size — but puts a lot of pressure on margins. 39% of their revenues from software, and going down. Driving up ARPU at scale key to growth with SMBs.

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5 Interesting Learnings from Weave at $130,000,000 in ARR

SaaStr

It’s something we don’t see too often these days, as $200m+ ARR sort of became the new floor to IPO in SaaS. Weave started off as a dental ERP and comms platform (including VoIP / phone), and then expanded beyond that as it scaled. Many SMB SaaS companies struggle to hit 100% NRR and 80% GRR.

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5 Interesting Learnings from Bill.com at $220,000,000 in ARR

SaaStr

Bill.com is one of the quiet SaaS success stories. Now they’ve scaled to $200m+ ARR growing 38% selling just to 100,000+ SMBs, solving a hard problem (i.e., automating the back office and payments and billing for SMBs), and doing it with 120%+ NRR. 121% NRR from SMBs — up from 110% at IPO.

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5 Interesting Learnings from BigCommerce at $180,000,000 in ARR

SaaStr

It’s done it by going more upmarket, and better monetizing partners and services. A reminder that adding a bit of fintech to your SaaS can be a huge accelerant. A reminder that adding a bit of fintech to your SaaS can be a huge accelerant. Driving existing customer revenue up more than new logos.