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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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Only 11% of Public SaaS Companies Sell Just to SMBs

SaaStr

SMB SaaS has a lot going for it: – Millions of them – Short sales cycles – Easier compete. But, it's often hard to get to $100m ARR selling just to SMBs. sell just to SMBs pic.twitter.com/Po1I2aMaBK. So many VCs and others have gotten more and more excited about SMB SaaS. Much higher.

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How to build a successful Embedded Payments strategy Part 2 | Ep 34

Payrix

Embedded Payments have become a popular initiative among vertical specific software companies looking to deliver a more seamless customer experience, introduce new revenue into the business, and stay competitive in today’s digital world. How do they think about attaching payments to those existing customers? But where to begin?

Payments 100
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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. Overall, Toast isn’t quite a SaaS company.

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5 Interesting Learnings from Shopify at $4 Billion in ARR

SaaStr

Shopify’s first quarter revenue: Q1 2021: $989 million Q1 2020: $470 million Q1 2019: $321 million Q1 2018: $214 million Q1 2017: $127 million Q1 2016: $73 million Q1 2015: $37 million Q1 2014: $19 million Q1 2013: $9 million. The Covid Boost for SaaS. But likely it’s below 100% excluding payments. Well, it’s murky.

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5 Interesting Learnings from Squarespace at $700,000,000 in ARR

SaaStr

Over $500,000 revenue per employee. Monetizing ecommerce via subscriptions, but not payment processing. Billion in GMV processed, up a stunning 91% from 2019. Billion in GMV processed, up a stunning 91% from 2019. Rather, it charges for software subscriptions to take payments on its websites. 85% NRR.