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The 250,000 Customer Club: How HubSpot and Monday.com Both Created SMB+ Empires

SaaStr

Both started SMB (Monday even more so), and Both have now gone more enterprise (Monday even more) But still with the vast majority of their customers SMB. Enterprise Expansion : While maintaining strong SMB growth, Monday.com has successfully moved upmarket.

SMB 273
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Approaching Half a Million Customers: How to Win in SMB with BILL CEO and Founder René Lacerte

SaaStr

SMB Unit Economics: Why Is 6 Quarters the Right Target for SMBs at Scale? So, SMBs are asking for consolidation, and that’s why Bill has acquired companies and continues to add more financial operation capabilities. BILL wants to be at the heart of every SMB business. If we go back to 2006, BILL was a cloud-based company.

SMB 307
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5 More Interesting Learnings From HubSpot at $2.4 Billion in ARR

SaaStr

HubSpot has gone upmarket over the past years, while also remaining even more SMB-focused. 36K+ Deals Also Increased to 28% of the Base Shopify has seen something somewhat similar, as both have gone upmarket, growth in SMB and smaller customers have still kept up. Because even more start smaller than ever.

SMB 312
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5 Interesting Learnings from Klaviyo at Almost $1 Billion in ARR

SaaStr

110% NRR from 157,000 SMBs Yes, it can be done, 110% NRR from SMBs. 54% Growth in $50k+ Customers Like Shopify, Klaviyo is firmly SMB overall. SMB Weaker. But SMBs in the middle have become more cost and price-sensitive. #10. .” 5 Interesting Learnings: #1. It’s down from 117% at its peak, however.

Scale 301
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Inherent Churn vs. Fixable Churn: You Have to Attack Both

SaaStr

So theres a theme Ive been working on with all the SMB-focused founders I work with and have invested in: # 1. The Goal for SMB SaaS is 100%+ NRR. Easy in enterprise, hard in true SMB. # However, SMBs have a certain level of inherent churn. And then your NRR will cross 100% with SMBs. Thats often 3% a month or so.

Churn 273
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Dear SaaStr: How Much Should a SaaS Company Invest in Professional Services?

SaaStr

It’s SMB. Crowdstrike gets 8% of its revenues from professional services, too, and makes money on them, with 27% gross margins. Okta gets about 3% of its revenue from professional services. HubSpot gets about 2.3% of its revenue from services.

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5 Interesting Learnings from RingCentral at $2.43 Billion in ARR

SaaStr

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. But I’m not sure that’s the proper way to look at it. Either way — ouch. Almost just as much.

Scale 284