SaaStr

DECEMBER 4, 2023

With the turbulence in the market in 2023, sales cycles have only been getting longer and a lot more complicated. The sales cycle is important because it cascades into a bunch of critical metrics for you and investors, including revenue. Embed different payment types both in invoices and reminders.

SaaS Payments 287

SaaS Payments Payment Services Payments Payment Features 287

Clouded Judgement

MARCH 10, 2023

Growth Deceleration of Consumption Companies So far, 2023 guides have not been pretty for consumption software companies. Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. Revenue multiples are a shorthand valuation framework.

Cloud 244

Cloud Trends Payment Features Subscription 244

Kellblog

SEPTEMBER 19, 2023

Upgrade your subscription to get access to the rest of this post and other paid-subscriber only content. Upgrade subscription The post Video of my SaaStr 2023 Presentation: The Strategic Use and Abuse of SaaS Metrics appeared first on Kellblog. You're currently a free subscriber.

Metrics 114

Metrics SaaS Payment Features Subscription 114

Clouded Judgement

FEBRUARY 10, 2023

” Were 2023 Software Estimates Already De-Risked To Start The Year? We’ve seen a number of companies report Q4 ‘22, and then guide for the full year 2023 (first look at 2023 guides, or the companies view on how the year will turn out). They guided 2023 1% above consensus. The primary reason (I think)?

Cloud 273

Cloud Software Review Technical Review Systems Review 273

Tom Tunguz

APRIL 1, 2024

y/y, estimated sales efficiency is 0.11, & contribution margins are negative : Rubrik sells $1 of subscription software for $0.88. It’s a strategic imperative to metamorphose from an on-premises perpetual-license company to a subscription-software company as fast as possible. But overall revenue is growing 4.5%

Data 219

Data Payment Features Subscription Cloud 219

Clouded Judgement

JULY 16, 2024

Provides end-to-end visibility of analytics and key metrics to all stakeholders, including executives, Finance professionals, line-of-business leaders and other business partners. We estimate our total addressable market opportunity across all enterprises and mid-market organizations to be approximately $50 billion as of December 31, 2023.

Benchmarks 295

Benchmarks Data Machine Learning Artificial Intelligence 295

SaaStr

JANUARY 11, 2024

I mean, Canva’s metrics for example are just awesome. Sometimes in great ways — forcing B2C subscription businesses to relentlessly provide a great end-user experience. Every month, the meal kit, the clothing, the game subscription, the video subscription almost has to be better than the month before.

Retention 321

Retention B2C B2B Churn 321

Stax

JANUARY 28, 2024

Long before the digital age, newspaper and magazine companies have been using the subscription model to create and retain a consistent readership for their publications. The most potent benefit of the subscription-based business model is that companies are guaranteed a fixed revenue stream—if they can retain their customers or subscribers.

Payment Features 88

Payment Features Payment Methods Payment Solutions SaaS Payments 88

Clouded Judgement

MARCH 1, 2024

Funds have gotten quite large and haven’t deployed much in 2022 / 2023. Update on Q4 Earnings One metric I love tracking in net new ARR added in a quarter. Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against.

Cloud 317

Cloud AI Investment Metrics 317

Clouded Judgement

DECEMBER 29, 2023

Subscribe now 2023 Top Performers In 2023, there were 14 cloud software companies that were up 100%+ this year (in the index I track of ~80 total)! Below you can see the top performers from 2023. I created this subset to show companies where FCF is a relevant valuation metric. Follow along to stay up to date!

Cloud 196

Cloud Software Review Payment Features Subscription 196

Chart Mogul

JUNE 1, 2023

So if you are keeping a close eye on your retention metrics this year, you’re not alone. Retention is one of the most important metrics when building a successful SaaS business. So if you are keeping a close eye on your retention metrics this year, you’re not alone. This is your guide to customer retention in 2023.

Retention 90

Retention Metrics Benchmarks Scale 90

FastSpring

MAY 20, 2024

Moving some, all, or simply more of your software offerings from a one-time perpetual license model to a software as a service (SaaS) subscription model can be daunting, but it’s so powerful for building dependable, recurring revenue. Letting FastSpring handle the subscription infrastructure.

SaaS Payments 158

SaaS Payments Payments Merchant Services Payment Solutions 158

Baremetrics

SEPTEMBER 15, 2021

We are going to walk you through a couple of the most popular pricing models—perpetual license and annual license, along with its variant subscription model —as well as mention a couple of the other popular ways to monetize software. Payment ii. Using Baremetrics to monitor subscription revenue. Table of Contents.

Payment Features 95

Payment Features Payments Payment Solutions Subscription 95

Clouded Judgement

MARCH 8, 2024

The full year guide assumes 14% growth for this upcoming year after they grew 31% in 2023. They did call out a couple one time benefits they saw in 2023 they don’t expect to see in 2024. The other one time benefit from 2023 was ~$40m of multi-year license deals. A year ago, they guided 2023 growth to 16%.

Cloud 167

Cloud Payment Features Subscription Revenue 167

Clouded Judgement

AUGUST 25, 2023

We built our data store from the ground up to be agile, unbound by specific schema or data structures, and, as of June 30, 2023, we are able to process data from over 300 native integrations and open APIs without friction. The vast majority of our subscription plans today are monthly.

Benchmarks 246

Benchmarks Artificial Intelligence Data Software Review 246

FastSpring

MARCH 3, 2023

Zuora is a recurring billing and monetization solution for: Subscription management Revenue recognition Payment collection Quotes And more… However, Zuora has one main shortcoming — it doesn’t handle sales tax or transaction liability for you. Provide electronic invoicing of all transactions.

Payment Services 78

Payment Services Payment Methods Payments Merchant Services 78

Clouded Judgement

APRIL 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., We’re undoubtedly set up for a very interesting 2023.

Cloud 167

Cloud Software Benchmarks Retention 167

Chart Mogul

OCTOBER 17, 2024

But as we grew, especially with the introduction of manual invoicing, it became nearly impossible to keep track of our performance.” Even then, the team often felt unsure if they were calculating metrics correctly. Every time investors or senior stakeholders requested performance data, it took days or even weeks to provide answers.

Payment Solutions 52

Payment Solutions Payment Methods Payment Features Payments 52

Clouded Judgement

APRIL 19, 2024

Their GAAP revenue grew 5% in 2023, and 29% in Q4 ‘23 YoY. Rubrik’s subscription ARR was $784m at the end of 2023 and growing 47% YoY. For context, full year GAAP revenue in 2023 was $628m. I created this subset to show companies where FCF is a relevant valuation metric. NTM revenue multiple.

Cloud 144

Cloud Scale Payment Features Subscription 144

Clouded Judgement

JANUARY 26, 2024

Net new ARR is something I track very closely for all of the private companies I work with, and it’s also an important metric to look at in public companies. Many public software companies don’t report ARR, so I’ll take the quarterly subscription revenue and multiply it by 4 to approximate ARR.

Cloud 167

Cloud Marketplace as a Service AI Payment Features 167

User Pilot

NOVEMBER 27, 2023

Related metrics that impact your revenue and how to use the insights to turn your product into a growth engine. Improve business valuation Your company’s valuation is tied closely to its revenue performance, especially because you’re a subscription business. By the end of this article, you will be equipped to do that.

Payments 105

Payments Revenue Payment Features SaaS Payments 105

Clouded Judgement

JUNE 20, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., This metric is more self-explanatory, so I won’t go into detail.

Cloud 167

Cloud Software Benchmarks Scale 167

Clouded Judgement

OCTOBER 13, 2023

growth in 2023. Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. I created this subset to show companies where FCF is a relevant valuation metric. consensus and +3.7% YoY in Aug Core CPI 4.1% consensus and +4.3%

Cloud 176

Cloud Artificial Intelligence Payment Features Subscription 176

Clouded Judgement

JANUARY 27, 2023

Early Look at 2023 Guides Given the Azure weakness reported on Tuesday, all software tumbled Wednesday morning with most names down 5-10%. A big reason for that was the guides for the full year 2023 we saw. We’ll get a lot more data points in the coming weeks on how other companies guide for 2023.

Cloud 144

Cloud Azure Pricing Payment Features 144

Clouded Judgement

MAY 10, 2024

After a strong finish in Q4, we saw a return to weaker demand conditions in the first quarter, similar to what we experienced in 2023. Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. Even a DCF is riddled with long term assumptions.

Cloud 167

Cloud Software GCP(Google Cloud Platform) Azure 167

Clouded Judgement

JANUARY 13, 2023

That was more broadly a period of ZIRP, and it’s interesting that today the 10Y isn’t hugely different from where it was in the period of 2010 - 2020 Morgan Stanley CIO Survey Everyone is eagerly awaiting 2023 forecasts to be “de-risked.” growth in 2023 (so not much change in 1 quarter).

Cloud 130

Cloud Forecasting Payment Features Subscription 130

Subscription Flow

DECEMBER 1, 2023

Recurring revenue models, or subscription models , can be a great way for businesses to generate income while providing customers with the options they want. However, a distinct set of metrics is needed for the subscription business model in order to track and keep an eye on the company’s health.

Payment Features 59

Payment Features Subscription Metrics Business 59

Clouded Judgement

MARCH 24, 2023

The end result was the expected result prior to the banking crisis - a 25bps hike 2023 Full Year Guides We’re nearly through Q4 ‘22 earnings season. The chart below shows 2023 guides vs 2023 consensus estimates to star the year. The chart below shows 2023 guides vs 2023 consensus estimates to star the year.

Cloud 130

Cloud Banking Payment Features Subscription 130

User Pilot

JUNE 2, 2023

Product adoption metrics tell you how well your platform is performing. In this article, we dived into 13 important adoption metrics to measure. Reaching product adoption is critical for subscription-based business models where revenue comes after the initial conversion. Long TTV is one of the major causes of early churn.

Metrics 98

Metrics Customer Lifetime Value Churn Onboarding 98

Clouded Judgement

SEPTEMBER 30, 2022

The expected budget growth for 2023 currently sits at 2.8%. So clearly the early expectations for growth in 2023 are coming in low. Within the broader IT budgets, software did have the highest growth expectations for 2023 at 3.1%. at the far right is the initial expectation for 2023 budget growth. The purple dot at 2.8%

Cloud 130

Cloud Payment Features Subscription Trends 130

Clouded Judgement

DECEMBER 2, 2022

2023 Forecasts There are 2 primary questions that matter right now for software stocks - are rates going up or down, and are numbers (foreword estimates) going up or down. The big risk still on the table remains 2023 estimates - specifically are they too high. This is a reduction in 2023 estimates by ~7%. When will that happen?

Cloud 130

Cloud Forecasting Software Review Revenue 130

Clouded Judgement

MARCH 3, 2023

3 months ago they guided to 47% growth for 2023. The red dot is what they’re guided to for the full year 2023 growth (which means the quarterly YoY growth in Q4 ‘23 would be lower than the red dot which is at 24% ). Companies that do not disclose subscription rev have been left out of the analysis and are listed as NA.

Cloud 144

Cloud Forecasting Payment Features Subscription 144

Clouded Judgement

MAY 31, 2024

.” As growth starts to slow, it gets harder and harder to justify using revenue multiples as a primary valuation metric. And when this happens, growth companies transition to more of a value based valuation metric (FCF or PE). I created this subset to show companies where FCF is a relevant valuation metric.

Cloud 184

Cloud Software GCP(Google Cloud Platform) AI 184

Clouded Judgement

DECEMBER 23, 2022

As I’ve said many times before, in 2023 the focus for software valuations will completely shift from interest rates (and multiples) to fundamentals. 2023 consensus estimates starting to come down. Wrapping this all up, we’re now starting to see 2023 estimates revised down. Q3 was a tough quarter.

Cloud 130

Cloud Sales Hiring Trends Payment Features 130

Stax

JANUARY 17, 2024

Unlike payments facilitated by card networks like Visa or Mastercard, ACH payments are managed by a body called the National Automated Clearing House Association (NACHA). In Q3 of 2023, the total volume of payouts on ACH networks reached 7.8 Security Payment processing involves the exchange of sensitive customer data.

Payment Services 88

Payment Services SaaS Payments Merchant Services Payment Facilitation 88

Clouded Judgement

SEPTEMBER 29, 2023

You can find the first link here Well, we now have the benefit of hindsight, and all the Fed officials who were saying we wouldn’t see rate hikes until the end of 2023 have proven completely wrong… From the time of those headlines to today we saw some of the steepest rates hikes we’ve ever seen!

Cloud 190

Cloud Government Banking Software Review 190

Clouded Judgement

MAY 12, 2023

On a related note - when we look at companies who gave full year 2023 guidance this quarter vs last quarter, on average those companies are not changing their guidance at all (median change in guide is 0%). There are some outliers, but for the universe who’ve reported so far the takeaway is 2023 guides were de-risked.

Cloud 130

Cloud Entrepreneurship Government Payment Features 130