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 293

Investment SaaS SMB Enterprise 293

SaaStr

SEPTEMBER 17, 2024

So two of the great leaders in SMB SaaS, Shopify for e-commerce, and HubSpot for sales, marketing and more, are going more upmarket: HubSpot 100+ seat deals are up 55% Shopify now gets 31% of its revenue from “Plus” or its bigger brands and more enterprise product And yet … they are also both going more SMB as well!

SMB 319

SMB Enterprise Scale Scaling 319

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. But even as they push more and more into the enterprise, the SMBs still are buying. of revenue in 2021 to 15.7% But I’m not sure that’s the proper way to look at it.

Scale 281

Scale Compensation SMB Cloud 281

SaaStr

JULY 26, 2022

So in theory, SMB SaaS is better than enterprise, at least 9 times out of 10: Deals close much faster. But beyond all the other Pros and Cons of SMB vs enterprise, there’s one looming issue with SMB SaaS: Churn. SMBs go out of business, and quickly. SMBs pay monthly, and often scrutinize every expense.

SMB 363

SMB Churn Payment Services SaaS 363

SaaStr

APRIL 28, 2025

By tracking and targeting diverse industries from day one (even pre-revenue), they discovered that solutions developed for one vertical would spark demand in seemingly unrelated industries. During pre-revenue, they hired ADRs to book demos specifically for product managers to gather feedback before writing code.

Scale 258

Scale Transportation Scaling SMB 258

SaaStr

JANUARY 9, 2025

Many that are self-serve and SMB-focused can start off without a sales team … for a while. 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. And it staffed up a very big sales team.

Scale 271

Scale Sales Hiring Sales Headcount 271

SaaStr

FEBRUARY 5, 2025

And when it IPO’d, it was still solidly an SMB solution. International Revenue is 28% About in the middle for B2B. #5. Leaning More into Free Even as it goes more enterprise, and see a decline in SMB / Commercial accounts, PagerDuty is still leaning in more on Free. As has PagerDuty. So Operating Margins Are Way Up.

SMB 267

SMB B2B Enterprise Scale 267

SaaStr

NOVEMBER 27, 2024

a Month Churn especially SMB churn remains Zoom’s biggest challenge at its mature state, but it’s been pushing customers to annual and longer contracts and more. 100k+ Customers Only Segment Growing, Are 31% of Revenue. It’s dropped “Video” from its name as it has gone communications and AI-first: $4.7B

SMB 271

SMB Churn Enterprise Acquisition 271

SaaStr

AUGUST 21, 2023

So SaaStr itself is a little funky — we only have 9 team members but a fair amount of scale in terms of reach, revenue, and in some cases, software utilization. So we reached out to the leading SMB vendor. 5x more for the SMB vendor! $50k But the SMB vendor is pushing hard to monetize its biggest SMBs the most.

SMB 246

SMB Enterprise Scale Pricing 246

SaaStr

JANUARY 21, 2022

Dorian Stone , Head of Organizations Revenue at Grammarly, is here to share lessons from his experience of scaling the company from consumer to SMB to Enterprise to help you steer your expansion efforts in the right direction. When Dorian stepped into his current role, they promised the board a strong growth on the revenue line.

Scale 246

Scale SMB Enterprise Sales Hiring 246

Clouded Judgement

JUNE 17, 2025

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. The formula to calculate this is: (Q1 ’25 revenue) / (Q1 ’24 revenue) - 1.

Cloud 277

Cloud Software Benchmarks Retention 277

SaaStr

OCTOBER 11, 2023

That’s not just pretty epic growth at almost $7 Billion in revenue, it’s one heck of a comeback. But a Smaller and Smaller Percentage of Revenue. Overall subscription solutions revenue is up just 21%, while payments and merchant solutions are up 35% — from a much, much larger base. #2. A tough transition.

Payments 289

Payments Merchant Services Revenue Payment Solutions 289

SaaStr

APRIL 30, 2024

How do you build GTM efficiency in SMB sales? While this title is SMB-oriented, the advice applies to Mid-Market and Enterprise, too. They were starting to see good signs but as SaaStr CEO and Owner board member Jason Lemkin pointed out, none of it was showing up in their revenue number yet.

Scale 297

Scale SMB Sales Hiring Sales 297

SaaStr

APRIL 2, 2025

Today it’s at: $800m ARR Growing 22% 20% Free Cash Flow Margins Modest re-acceleration in revenue growth and new customer count — but not NRR Roots are SMB, but 60% of ARR comes from mid-market and enterprise today And a $4B market cap, so 5x ARR Freshworks is getting a bit of a second wind, which is great to see!

Scale 244

Scale AI SMB B2B 244

SaaStr

FEBRUARY 28, 2023

While Zoom Enterprise is growing at a healthy clip, churn is over 3% a month for its SMB customers As a result, it’s now predicting 1% growth next year 1% pic.twitter.com/i2k2W9QbVX — Jason Be Kind Lemkin  (@jasonlk) February 27, 2023 So Zoom has just been the craziest story of all time in SaaS. Good Times, indeed. Truly insane.

SMB 270

SMB Churn Enterprise Engineering 270

SaaStr

JANUARY 3, 2025

” If you have a SaaS company above 2 million in revenue, both Brian and Jason agree that at that point, all that matters is the management team. In sales, t he more SMB you are, the more you should lean on your bench. Nothing else matters. Lean into self-motivated talent.

Sales Hiring 281

Sales Hiring Scale Systems Review Interviewing 281

SaaStr

MAY 28, 2025

It never had a downturn, and just keeps on growing at top-tier rates, selling both to SMBs and now larger enterprises. Financial Highlights Revenue : $282M in Q1 FY25, up 30% YoY (!) The company is successfully evolving from its SMB roots into a serious enterprise software contender.

Scale 176

Scale SMB Acquisition Enterprise 176

SaaStr

DECEMBER 14, 2022

Yamini Rangan, CEO at HubSpot, has many insights on how to serve SMB customers at scale. The Challenge of Digital Expansion for SMB. When the shift began in 2020, everyone wrote off SMBs as unprepared for the necessary changes that lie ahead. For Rangan, NRR is their most treasured KPI beyond mere revenue growth.

Scale 260

Scale SMB Scaling Innovation 260

FastSpring

FEBRUARY 6, 2025

Podcast Full Interview: Video Transcript David Vogelpohl (00:05) Hello everyone and welcome to Growth Stage by FastSpring where we discuss how digital product companies grow revenue, build meaningful products and increase the value of their businesses. The post How SMB Digital Brands Can Win the Best Talent appeared first on FastSpring.

SMB 106

SMB Sales Recruiting Branding Sales Hiring 106

SaaStr

DECEMBER 1, 2021

The good news is that, as long as you are providing the customer with high value and good experiences, you will likely get repeat business and perhaps even more revenue from the same customer. To make sure you keep customers and revenue in your businesses, pay attention to your NRR (Net Revenue Retention) even more than your ARR.

Software Review 281

Software Review SMB Enterprise Software 281

Stax

JUNE 18, 2025

The most common challenges associated with vertical SaaS are competing for adoption against popular legacy or traditional SaaS solutions, a smaller lead pool that may soon exhaust, and managing the expectations of consumer-like SMB customers. What is Vertical SaaS?

Merchant Services 167

Merchant Services SaaS Payments Payment Services Payments 167

SaaStr

MAY 26, 2025

At least for SMB and more routine mid-market sales. Clari: The Top 10% of Reps Close 65% of Revenue. Organizations clinging to traditional sales structures especially in SMB and mid-marklet will find themselves rapidly outpaced by competitors embracing this hybrid approach. So what does that mean for inside sales? 50% are AI.

Scale 213

Scale Sales Hiring AI Sales 213

SaaStr

APRIL 4, 2022

Jess Weimer, Senior Vice President of Revenue Marketing at Podium, discusses why it’s time to pivot from demand generation to revenue marketing and best practices for making that pivot. Pillars of Revenue Marketing . Evolving to Revenue Marketing . Organizing your teams for revenue marketing.

Scale 271

Scale Revenue Scaling Marketing 271

SaaStr

JUNE 4, 2025

As a “prosumer” app there is overlap for SMB and freemium B2B apps. The metrics are very strong: $2B ARR (run rate — but not really software revenue) Generated from $121B in transactions on platform Growing 23% $251 ARPU 88% Gross Margins Average customer uses 3.3 And a good comp for Ramp, Brex, and others.

Outsourcing Services 185

Outsourcing Services Scale Banking Customer Lifetime Value 185

SaaStr

JUNE 9, 2025

For SMB sales, quotas closer to 3x OTE are common, while enterprise sales can push closer to 5x. You might also shift from focusing solely on revenue to incorporating metrics like logo acquisition or customer retention. As you scale, shift to quality metrics like closed-won revenue and opportunity-to-close percentages.

Scale 160

Scale B2B Benchmarks Sales 160

SaaStr

NOVEMBER 21, 2020

Let’s look at some of the top public SaaS companies: Shopify — very SMB: 100%. Hubspot — mostly SMB: 100%. Surverymonkey — fairly SMB, but going more enterprise: 100%. Zendesk — 116%, mix of SMB and enterprise. 119% net revenue retention. Asana, 130% net revenue retention. And mostly SMBs.

Retention 349

Retention SMB SaaS Enterprise 349

Tom Tunguz

FEBRUARY 26, 2025

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.

SaaS Payments 283

SaaS Payments Pricing Strategy Scale 283

SaaStr

APRIL 24, 2022

BowtiedCocoon: Top SaaS SMB AEs have $125k OTEs. Navigating the CRO and CMO Relationship with G2 and SalesLoft: Mike Weir, Chief Revenue Officer, G2; Steve Goldberg, Chief Revenue Officer, SalesLoft; Amanda Malko, CMO, G2. Revenue Marketing: Build for Scale with Podium’s SVP, Revenue Marketing Jess Weimer.

Sales Hiring 290

Sales Hiring Revenue Scale SMB 290

SaaStr

MAY 18, 2021

But one thing that is almost always true, is you get more renewals, more upsells, and more net revenue retention from your largest customers. Squarespace is almost all not just SMB, but self-service. Their new revenue retention is about 85%. As a best-of-breed player, its net revenue retention is about 100%. Segment it.

Merchant Services 271

Merchant Services Revenue SMB SaaS 271

SaaStr

APRIL 30, 2025

ServiceTitan, the operating system for the trades, continues to scale impressively, with $772M in FY25 revenue, $800m+ ARR and a clear path to $1B ARR. Net Dollar Retention >110% and GDR of >95%: The Power of Being a True Operating System ServiceTitans NRR consistently exceeds 110%, even with SMB-heavy customers. Thats rare.

Payments 143

Payments Payment Services SaaS Payments Payment Solutions 143

SaaStr

JULY 27, 2022

If a SaaS business hopes to win over the SMB market successfully, it will need a precise GTM approach. Founded in 2015, PayFit is a software company that empowers entrepreneurs and SMBs to digitize payroll and HR processes. Without an autonomous-first approach, you will miss out on many SMBs.

SMB 243

SMB Sales Hiring Scale B2C 243

SaaStr

MAY 7, 2021

Revenue growth accelerated from 32% to 41% * And new customer growth accelerated to a crazy 45% YoY * All while keeping ACVs constant at ~10k. They did it the hard way, with SMBs. HubSpot is sort a bell-weather stock and company for selling to SMBs and mid-market. And what we see is that SMB is on fire in SaaS.

SMB 362

SMB Revenue Enterprise SaaS 362

SaaStr

AUGUST 29, 2022

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. Millions and millions more.

SaaS Payments 346

SaaS Payments Scale SMB PayPal 346

SaaStr

FEBRUARY 1, 2022

80% of Datadog’s revenue at $1.2B revenue comes from its $100k+ customers — but its Free edition is still core to its lead gen. Toast’s SMB NRR is 114% today — but it took 4 full years just to get to 100%. A reminder that you don’t need to settle for sub-100% NRR from SMBs.

Scale 363

Scale SMB SaaS Scaling 363

SaaStr

JANUARY 2, 2021

We can see that NRR for tiny customers is probably about 100%, as it is for other SMB leaders. Again, the latest crop of Cloud IPOs shows SMBs seem to have no limit in terms of TAM, with SMB growth at Shopify and Zendesk keeping up with enterprise, and even at Asana, SMB growth is still impressive at $250m ARR.

SMB 363

SMB Enterprise Cloud Churn 363

SaaStr

JUNE 8, 2022

ARR, Zoom was an SMB powerhouse, with Enterprise growing. SMB is now saturated at $4B ARR and not growing, but Enterprise is picking up the slack and growing faster than ever. 5 Interesting Learnings: #1 $100k+ customers are now the engine, not self-serve SMBs. ARR … which it did in just 1 year (!!)

SMB 336

SMB Enterprise Engineering Scale 336

SaaStr

JUNE 7, 2021

If your SMB product requires or has a salesperson involved in closing, that’s a clear sign you also want a human being involved in making sure that customer is a success post-sale, too. Just assign a certain amount of ARR per each SMB customer success manager. Support has to handle a lot of routine SMB issues anyways.

Customer Success 352

Customer Success Scale SMB Sales 352