Clouded Judgement

FEBRUARY 23, 2024

Subscribe now Rule of X Meritech and Bessemer both recently did an analysis that looked at the Rule of 40 and asked the question “what if growth / profitability shouldn’t be treated equally in the Rule of 40?” So the formula for Rule of 40 becomes (growth multiplier) * rev growth + FCF margin.

Cloud 152

Cloud Metrics Subscription Payment Features 152

SaaStr

FEBRUARY 14, 2023

The current public market environment might look like a great SaaS crash for many people. As things appear to slow, how do we get back to the fundamentals, find the things that are great about SaaS that are measurable, and help people see the value in your business? It captures the predictability of SaaS revenue and built-in growth.

Metrics 213

Metrics Marketing SaaS SMB 213

SaaStr

MARCH 27, 2023

Capchase Co-Founder & CEO Miquel Fernandez and 01 Advisors VP Kristen Clifford use data to show us what differentiates the best SaaS companies from the rest. The top SaaS companies are growing really fast, roughly at twice the rate of their peers. The top-performing companies achieved 80% according to the rule of 40.

SaaS Payments 206

SaaS Payments Technical Review Software Review Venture Capital 206

Clouded Judgement

MAY 10, 2024

Here’s some data so far: 6 out of 40 (15%) saw ARR shrink from Q4 to Q1 Of companies who gave Q2 guidance, 20 out of 37 (54%) guided BELOW Q2 consensus. The buyer urgency that we saw in December did not carry over into Q1. We’ll see if anything improved in the month of April, or if it was another challenged month.

Cloud 161

Cloud Software GCP(Google Cloud Platform) Azure 161

SaaStr

NOVEMBER 8, 2021

Relative to any other sector, the SaaS industry is uniquely transparent. In my opinion, the most informative and useful SaaS content “speaks for itself” and is well suited for future reference. The slides from Battery Ventures’ “State of the OpenCloud” event meet that standard. . Full Session YouTube.

Scale 306

Scale Cloud Forecasting Pricing 306

SaaStr

MAY 23, 2023

I didn’t so much learn from it as confirm — confirm things I’ve seen, known, and put into practice, and seen it confirmed across many SaaS startups. Renewals, if they are done by sales, are paid out at about 40% of an initial commission. Sales Leadership Typically Has 40% or So From Variable Comp.

Scale 276

Scale Compensation Sales SMB 276

SaaStr

JULY 29, 2022

The Day in SaaS, 07.28.22: Public SaaS companies are worth exactly 50% of What They Were 12 Months Ago: [link] pic.twitter.com/pbK4BmoNwo. The best of the best in SaaS and Cloud, truly the fastest growing and most iconic SaaS companies, from Snowflake to Datadog and more are way, way down. But what about startups?

Startup 299

Startup Venture Capital SaaS Cloud 299

SaaStr

DECEMBER 3, 2023

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. They don’t.

SaaS Payments 212

SaaS Payments Metrics Payments SMB 212

Clouded Judgement

MARCH 29, 2024

The promise of SaaS is that growth in the early years leads to profits in the mature years. .” The below chart shows the percentage of companies beating / missing consensus estimates (with the line chart showing the median beat). As you can see, we’re still at slightly depressed values for both.

Cloud 278

Cloud Forecasting Subscription Payment Features 278

SaaStr

OCTOBER 19, 2022

So Paycom is a quiet SaaS leader you probably don’t know that much about unless you are in payroll or HR services. That’s a very impressive revenue multiple in today’s world … for a SaaS company that has the trifecta of growth, profitability, and scale. 40% EBDITA. The secret?

Scale 277

Scale SMB Engineering Cloud 277

SaaStr

FEBRUARY 18, 2023

As a rough rule, anything < 10% isn’t material or worth their time. Many SaaS companies themselves are coming up on $1b in ARR. They absolutely have 10, 20, 40 extra, pretty darn good engineers to allocate to a new project, product or initiative. So they have to pick where to put those 20, 40, 100 “extra” engineers.

Startup 238

Startup Engineering Innovation Trends 238

Payrix

MAY 14, 2024

Adam joins Ian Hillis on PayFAQ: The Embedded Payments podcast to discuss the intersection of software and Embedded Payments along with software growth strategy, key performance indicators, and the pivotal role of payments for SaaS companies. No one knows this better (or more intimately) than a software company Chief Revenue Officer (CRO).

Payments 130

Payments Payment Services Payment Solutions SaaS Payments 130

SaaStr

APRIL 7, 2024

They really are a great checklist when you are starting to scale sales in SaaS: #1. So just a little while back, Lenny Rachintsky had me on his hyper-popular podcast to talk about scaling sales, from the perspective of a founder who hasn’t really done sales. I still regularly get emails about it, and the full deep dive is above.

Sales Hiring 255

Sales Hiring Scale Headcount Sales 255

Clouded Judgement

MARCH 10, 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. The promise of SaaS is that growth in the early years leads to profits in the mature years.

Cloud 244

Cloud Trends Subscription Payment Features 244

ChurnZero

MAY 2, 2024

The 2024 B2B SaaS Benchmarking Survey by SaaS Capital is the most comprehensive and up-to-date source of its kind for SaaS and customer success leaders who want to know where they stand compared to peers and competitors. Takeaway 1: Equity is hard to get right now, and very few people are doing it.

Benchmarks 52

Benchmarks B2B SaaS Technical Review 52

SaaStr

NOVEMBER 16, 2021

As your SaaS company grows and you go through various fundraising stages, your company size also grows. David Sacks, Co-Founder and General Partner at Craft Venture,s shares wisdom from his years of experience in SaaS to help you build your org chart for each step of your company’s fundraising journey. Employee Count: 40 – 50 .

CTO Hire 253

CTO Hire Sales Hiring Sales Recruiting CTO 253

Clouded Judgement

DECEMBER 1, 2023

Amazon was clear in their beliefs that there won’t be “one model to rule them all” and instead users will embrace choice. Couple takeaways for me: 2024 is shaping up to be the “prototype to production” year for AI. This year, there was tons of experimentation. Time will tell if they can execute!

AWS 293

AWS Cloud AI Search Cost optimization & reporting 293

SaaStr

JULY 28, 2023

So don’t look now, but things are getting a smidge better in SaaS. Goldman Sachs is now predicting the first re-acceleration in ACVs in years: And: Top Cloud and SaaS stocks are up 31% this year. Top Cloud and SaaS stocks are trading at 15x ARR or more. We’re all macro experts in SaaS now! But +31% is real.

SaaS 207

SaaS Cloud Startup Marketing 207

Clouded Judgement

DECEMBER 29, 2023

Only 20 traded down on the year, and the median year-to-date performance of the basket of companies was +40! vs 5.2x) 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.

Cloud 189

Cloud Software Review Subscription Payment Features 189

SaaStr

JULY 28, 2023

So don’t look now, but things are getting a smidge better in SaaS. Goldman Sachs is now predicting the first re-acceleration in ACVs in years: And: Top Cloud and SaaS stocks are up 31% this year. Top Cloud and SaaS stocks are trading at 15x ARR or more. We’re all macro experts in SaaS now! But +31% is real.

SaaS 197

SaaS Cloud Startup Marketing 197

Clouded Judgement

MAY 3, 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. The promise of SaaS is that growth in the early years leads to profits in the mature years.

Cost optimization & reporting 183

Cost optimization & reporting Cloud Software Azure 183

SaaS Metrics

AUGUST 9, 2023

The Rule of 40 is an important metric for gauging the health and profitability of a SaaS company. Achieving this benchmark can be a challenging task for a SaaS company, but the rewards are significant. This rule suggests that a company needs to be growing fast enough to offset their expenses and.

Strategy 52

Strategy Benchmarks Metrics SaaS 52

SaaStr

MARCH 7, 2023

A Look Back At 2022 Performance ICONIQ Growth leverages quarterly operating and financial data from 92 enterprise SaaS companies. Many companies got sucked into the 2021 vortex of a low-interest rate environment and high multiples when they should have focused on growth and efficiency. PST, to unveil the data behind effective scaling.

Outsourcing Services 173

Outsourcing Services Scaling Venture Capital Forecasting 173

Teamgate

AUGUST 14, 2023

Have you heard of the Rule of 40? It states that for a SaaS business to be healthy, it must have a combined growth rate and margin of at least 40%. For some small SaaS companies or those just getting started, this might seem like an impossible rate to reach. Rest assured, meeting the Rule […] Source

SaaS 91

SaaS Business Startup 91

Clouded Judgement

MARCH 15, 2024

It’s started to level off, but still remains elevated 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. Let’s start with Q4 YoY growth.

Cloud 161

Cloud Software Review Subscription Payment Features 161

SaaStr

SEPTEMBER 13, 2023

Founder and General Partner of Craft Ventures, David Sacks, shares his perspective on what to expect from SaaS in 2024. Can you raise a Series A if you’re not “AI SaaS?” Can You Raise A Series A If You’re Not AI SaaS? So, can you raise a Series A if you’re not “AI SaaS?” Is everything going to be focused on AI?

SaaS Payments 224

SaaS Payments Payment Solutions AI SaaS 224

Clouded Judgement

MARCH 1, 2024

Follow along to stay up to date! Subscribe now Shades of 2021 in Venture Markets Private markets are really starting to heat up, and I’m starting to see shades of 2021. Anything AI related has always been “hot,” but it has really hit a fever pitch in the last few months. Everything getting pre-empted.

Cloud 311

Cloud AI Investment Metrics 311

Clouded Judgement

APRIL 26, 2024

Microsoft kicked off earnings season with a bang! For software, all eyes were on Azure - which grew 31% YoY (ahead of expectations closer to 29%). For Azure AI Services, they just disclose the pts of growth they saw from Azure AI (which you can interpret in multiple ways.). On the other hand, the rate of growth clearly slowed in Q1.

Azure 177

Azure Cloud Software AI 177

SaaStr

DECEMBER 13, 2023

Dave Kellogg, EIR at Balderton Capital and 25-year C-level veteran, shares the top 14 signs that you have a SaaS metrics problem, the five reasons those symptoms exist, and a SaaS metrics maturity model with five layers to help you move the needle at every stage. The 15 Types of Misuse and Abuse of SaaS Metrics #1: Bludgeoning.

Metrics 301

Metrics Sales Hiring Benchmarks SaaS 301

Clouded Judgement

JANUARY 26, 2024

I mean if you're improving productivity, 40%, 50%, it just sells itself. 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. trillion by 2027.

Cloud 161

Cloud Marketplace as a Service AI Subscription 161

Clouded Judgement

APRIL 19, 2024

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. The promise of SaaS is that growth in the early years leads to profits in the mature years. NTM revenue multiple.

Cloud 141

Cloud Scale Subscription Payment Features 141

SaaS Metrics

JUNE 8, 2022

The Rule of 40. It may sound like some ancient code, but it is actually the formula that helps SaaS companies understand their growth and scalability. The term rule of 40 was coined by two venture capitalists, Fred Wilson and Brad Feld, in 2015. It has continued to be used by organizations.

Metrics 52

Metrics SaaS 52

SaaStr

APRIL 26, 2022

Ok times are tough in the public markets for SaaS and Cloud. So Zscaler is the quiet SaaS and Cloud leader that just … delivers. Ok this is an epic example of the compounding nature of SaaS. The “Golden Ratio” in SaaS, when your customer count grows almost as fast as revenue. #8. But not for Zscaler.

Scale 246

Scale Cloud Scaling Revenue 246

Clouded Judgement

NOVEMBER 24, 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. The promise of SaaS is that growth in the early years leads to profits in the mature years.

Cloud 161

Cloud Subscription Payment Features Metrics 161

SaaStr

SEPTEMBER 20, 2023

Beyond multiples, many Cloud companies faced a deluge of headwinds that impacted business fundamentals… Lengthening sales cycles Tightening customer budgets It was no surprise that SaaS IPOs came to a screeching halt. The past twelve months have been relatively turbulent for Cloud founders. Within the year, the BVP Cloud Index slid over 50%.

Cloud 255

Cloud Payments Software Review Payment Solutions 255

Kellblog

MAY 12, 2023

These slides are largely the same as the KiwiSaaS ones, with the notable exception that European companies may find some of the data more relevant because Michael was able, in several cases, to replace my largely US-based benchmarks with data from Balderton’s universe of European SaaS companies. I love that quote.)

Metrics 114

Metrics Benchmarks Social Media Retention 114

Clouded Judgement

APRIL 12, 2024

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. The promise of SaaS is that growth in the early years leads to profits in the mature years. throughout the year.

Cloud 141

Cloud Subscription Payment Features Revenue 141