SaaStr

DECEMBER 14, 2023

Lower interest rates lead to SaaS multiple reflation, likely during 2H’24 It’s not clear how truly tight the link is between interest rates and SaaS multiples, but the overall correlation is clear. Lower inflation and the fed lowering interest rates should lead to an expansion of SaaS multiples.

Scale 261

Scale SaaS AI Innovation 261

Andreessen Horowitz

AUGUST 4, 2020

Today, about 90% of public SaaS companies and the 2019 Forbes Cloud 100 have subscription-based revenue models. Now new fintech infrastructure companies have made it possible for SaaS businesses to add financial services alongside their core software product.

Scaling 145

Scaling SaaS Cloud Subscription 145

SaaStr

SEPTEMBER 29, 2023

One of the open secrets behind a lot of great SaaS companies is going multi-product. What Caused This Crowded Software Market? It has become much cheaper to build software — You can build high-quality products cheaply in your dorm room with a laptop. That’s unbelievable! Naturally, demand is going to lead to a ton of supply.

Scale 238

Scale Scaling Startup Sales Hiring 238

SaaS Metrics

SEPTEMBER 25, 2023

Scaling a SaaS product isn’t always straightforward. As you add features or grow your user base, the software can become hard to manage. They offer a way to scale precisely—adjusting. Read more The post SaaS Microservices and Containers: Precision Scaling first appeared on SaaS Metrics.

Scaling 52

Scaling SaaS Metrics Software 52

Clouded Judgement

APRIL 11, 2024

My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., Is Software Rebounding? FCF Margin FCF is an important metric to evaluate in SaaS businesses. net retention and CAC payback). Who are the real AI winners.

Cloud 177

Cloud Software Azure AWS 177

USIO

APRIL 22, 2024

SaaS companies are continually seeking innovative strategies to not just maintain but amplify their growth trajectory and increase revenue. Integrating efficient payment systems along with offering revenue share will significantly impact a SaaS company’s revenue streams and overall expansion.

Payment Services 130

Payment Services SaaS Payments Payment Solutions Payments 130

Tom Tunguz

MARCH 20, 2024

Will AI sofware companies operate with better or worse profitability than a classic SaaS company? AI SaaS may be much more profitable than the -10% average net income margins of the current crop of public businesses. Microsoft & ServiceNow have seen the impact on their teams at scale. But now I’m not so sure.

AI Search 190

AI Search AI Scale SaaS 190

SaaStr

APRIL 1, 2023

The SMBTech economy is very different from enterprise software, and there is massive opportunity to capture it. Instead of walking into places or calling on the phone to speak to someone, businesses could reach customers through social media and other software. There are over 400M small businesses worldwide. That’s why patience is key.

Scale 204

Scale SMB Merchant Services Payment Methods 204

SaaStr

JANUARY 24, 2023

As SaaS founders are looking to scale and raise funding, it can be confusing and stressful to navigate in the uncertain market of the past few years. The Perfect Storm Established in 1962, OMERS Equity has built an impressive software portfolio, including companies like Skillshare, Shopify, Hopper, and GitLab. Sign up for free.

Scale 228

Scale Scaling Software Review Operational efficiency. 228

SaaS Metrics

SEPTEMBER 29, 2023

However, sustaining quality as you scale can be challenging without the right call center software. Read more The post How the Best Call Center Software Helps Scale Up Business Growth first appeared on SaaS Metrics. In this article, we’ll look.

Scaling 52

Scaling Software Business Metrics 52

SaaStr

SEPTEMBER 14, 2020

Automation at scale. This will usher in unlimited potential for new innovation and growth in SaaS and Cloud. # 2 Cloud is Eating Software. The astonishing fact is: cloud is eating software. In just five years, Cloud will become the majority of the software market. 3: In the cloud economy, scale wins.

Technical Review 308

Technical Review Cloud Software Review Technology 308

SaaStr

SEPTEMBER 16, 2022

And one of my themes was that while the markets are down, I mean way down — the best in SaaS are still growing at jaw-dropping rates. But for the most part, there is no slowdown in the leaders of SaaS. They are often accelerating at scale. There literally has never been a better time to sell a SaaS product.

SMB 349

SMB SaaS Cloud Scaling 349

SaaStr

NOVEMBER 24, 2020

Thanks to our partners and sponsors we have been able to take our events digitally – bringing together SaaS industry experts from across the world. Check out the low down on our sponsors for SaaStr Scale who are helping to make this event happen. It is the last SaaStr event of 2020 and it sure has been a wild ride. Freshworks.

Scale 250

Scale Scaling Outsourced Development compliance 250

Clouded Judgement

JULY 21, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Subscribe now Are Software Companies Bad Businesses? There was some talk last week on the All-In podcast about software companies. The gold standard for all public software companies is GAAP net income in the fullness of time.

Cloud 130

Cloud Software Sales Hiring Scale 130

SaaStr

SEPTEMBER 9, 2022

Back in the day, premium comp for some software sales execs made simple and easy sense. Traditional software had 90% gross margins, and the classic enterprise sales reps, the best ones, could close a million or more dollars a year. Many SaaS companies just agreed to higher OTEs, but packaged them with higher quotas as well.

Scale 318

Scale Venture Capital Sales Hiring Sales 318

SaaStr

SEPTEMBER 19, 2022

SaaS businesses are discovering that customers choose and recommend them based not on flashy marketing or super fancy product features but on the experience of engaging with the company and the value it delivers. Fast forward to 2022, customer success is an established function at even many early-stage software companies.

Sales Hiring 244

Sales Hiring Customer Success Scaling Construction 244

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.

SaaS Payments 210

SaaS Payments Metrics Payments SMB 210

Intercom, Inc.

SEPTEMBER 10, 2020

Applying data and science to scaling has become easier because of the shift that’s happened in the software industry over the past 15 years, from outside sales to inside sales. A data-driven framework for scaling. Mark’s latest ebook, The Science of Scaling , outlines a precise framework for success.

Scale 226

Scale Scaling Sales Recruiting Sales Hiring 226

SaaStr

OCTOBER 11, 2023

Eran Zimman, monday.com’s co-founder and co-CEO, shares his secrets to scaling and growth in an unpredictable market. It’s a very flexible software that allows everyone to build their own solution. It’s a very flexible software that allows everyone to build their own solution. Why project management? It’s cheap.

Scale 164

Scale Sales Hiring Scaling Banking 164

SaaStr

NOVEMBER 8, 2023

In SaaS, we talk a lot about hyper-growth, uber-successful companies, but many founders, including hyper-growth founders, make mistakes over and over. Maybe you feel SaaS is crushing it this year, but it’s not easy for a lot of folks. Failure #3: Not Scaling Based On Leading Indicators There’s a big fallacy in software.

Scale 244

Scale Sales Hiring SaaS Scaling 244

Clouded Judgement

DECEMBER 21, 2023

My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., Subscribe now Is Software Rebounding? This is the first quarter we’ve heard that message, and a good leading indicator for the rest of the software buying universe.

Cloud 177

Cloud Software Benchmarks Retention 177

SaaStr

DECEMBER 21, 2023

So there were barely any SaaS IPOs in 2022 or 2023. The last big SaaS IPO of the Boom Era was Hashicorp in December 2021, and after that, multiples fell off a cliff. There were basically no significant SaaS IPOs for almost 2 years, until Klaviyo (+ Instacast + ARM) all tried to reopen the market in September 2023.

SaaS 295

SaaS Software Marketing Management 295

SaaStr

JANUARY 5, 2022

In 2015, SaaS cloud-based content management tool Box went public. Especially with the coronavirus pandemic, Box—like many other SaaS companies—saw a decline in growth year over year. What you want in SaaS is big accounts you land and expand with. Since then, their growth has been impressive, but it hasn’t always been steady.

Scale 267

Scale Scaling Sales Hiring Software Review 267

SaaStr

APRIL 19, 2024

How do you reverse-engineer your first million as a SaaS startup founder? To the OG software people who read SaaStr, Jason is “the guy,” Sam says. He’s the person that the founders of Hubspot and companies that make tens of millions of dollars want to learn about software from. Let’s step back into the older days of software.

Engineering 252

Engineering Business Model Pricing Scaling 252

FastSpring

NOVEMBER 9, 2023

Looking to join SaaS founders and tech enthusiasts who are discussing the most innovative trends for SaaS companies? If so, join FastSpring at the SaaS North November 15-16th! Since 2016, SaaS North has been recognized as THE Canadian hub for rapidly-scaling SaaS founders and their teams.

Merchant Services 135

Merchant Services SaaS Payments Payment Methods Payment Services 135

FastSpring

MAY 19, 2020

To be able to succeed in the global online market, software and SaaS companies need to keep up with the constantly changing data security best practices to protect their consumers. In our guide, you’ll learn: Why your compliance is necessary to scale your business globally. That’s where our guide can help.

Merchant Services 140

Merchant Services compliance Software SaaS 140

Inturact

AUGUST 9, 2023

Software as a Service (SaaS) companies can leverage the effectiveness of video marketing to scale their business and achieve their goals. This article explores various SaaS video marketing techniques. It opens the window to connect with your audience and promote products or services organically.

Scaling 52

Scaling Marketing Business SaaS 52

SaaStr

DECEMBER 13, 2023

So Jamin Ball at Altimeter Capital probably does the best job of tracking SaaS and Cloud metrics of public companies of anyone out there. And for many in SaaS, we’re merely bouncing off a bottom: We did deep dives with both Henry Shuck, CEO of ZoomInfo, and Aaron Levie, CEO of Box the past few weeks. Albeit Only a Little Bit.

SaaS 254

SaaS Cloud Scale Metrics 254

Tom Tunguz

JANUARY 11, 2021

Imagine two public SaaS companies, identical in every respect but one. Let’s plot the current multiples of software companies to see if the shape appears in the current market. The vertical axis differs because most software companies are typically valued on forward multiple, not Price/Earnings (P/E). The answer is yes.

Software 248

Software Scale Pricing Scaling 248

SaaStr

DECEMBER 26, 2023

So we’re reaching new levels of efficiency in SaaS — at least in the public markets. The average public SaaS company now has hit $300,000 in revenue per employee or so on average. Almost Everyone’s Gotten Radically More Efficient in SaaS That’s a good metric to think about at scale now.

Venture Capital 282

Venture Capital Scaling AI Investment 282

SaaStr

FEBRUARY 24, 2023

Doug Pepper, General Partner at ICONIQ Growth, has invested in software and SaaS companies for 22 years, from seed to growth stage. They initially double their ARR each year in scaling post $10M. For most SaaS startups, 60-75% of the costs are personnel related.

Scale 213

Scale Sales Hiring Scaling Venture Capital 213

SaaStr

NOVEMBER 24, 2023

(And yes, I know we can argue Databricks is neither really Cloud nor really SaaS. I’d argue that doesn’t much matter — its comparables are the Cloud and SaaS leaders). Canva image from here ) The post Canva and Databricks: The Two Big Potential SaaS / Cloud IPOs of 2024 appeared first on SaaStr.

Cloud 285

Cloud SaaS Enterprise Branding 285

Intercom, Inc.

DECEMBER 31, 2019

Putting narrative order on the past decade, a 10-year-period that has somehow remained stubbornly nameless, is quite the challenge, but it’s impossible to make sense of the 2010s without understanding the role of software. The scale is extraordinary. Rise of the cloud and SaaS businesses. There are about 3.2

Payment Solutions 259

Payment Solutions Payment Methods Software SaaS Payments 259

SaaStr

JUNE 26, 2019

Ok this isn’t the most profound SaaS post of all time, but now that there are 100+ public SaaS companies and unicorns, we can finally answer a question — is it better to start a company that remakes an existing category, or that creates a new one? Well, actually maybe we can’t answer that question. Things change.

Software 248

Software SaaS Mobile Innovation 248

FastSpring

DECEMBER 8, 2022

As a former agency owner, now the Chief Marketing Officer at FastSpring, David Vogelpohl has helped many software companies scale around the world. We’ll handle all the hard stuff, such as localizing checkout, billing and ecommerce compliance, and tax management — and let you focus on building and growing your SaaS business.

Payment Methods 78

Payment Methods Payment Solutions SaaS Payments Software Review 78

FastSpring

DECEMBER 7, 2023

In this episode of Growth Stage, Carl will dives into his experience running acquisitions of SMB software businesses, including: His thoughts on what makes a software company a good target for an acquisition by a brand. What factors beyond financials makes a target even more valuable. Sign up for a free trial or schedule a demo today.

Software Review 136

Software Review Technical Review Development Team Review Branding 136

SaaStr

APRIL 4, 2023

CIPIO Partners is a pan-European growth equity firm and early growth investor, primarily in software and software-enabled models. Thankfully, the SaaS world doesn’t require spears and bows, but it does require a careful approach. You’ll want to choose your Go-To-Market tools based on what you’re after.

Scale 233

Scale Strategy Scaling Outbound Sales Team 233