Tom Tunguz

APRIL 29, 2019

Slack generated $105m in revenue in 2017, $221m in 2018 and $401m in 2019. Zoom, in blue has been smaller in each year, but is growing faster.This compares to $61m, $151m and $331m in revenue for Zoom. Slack spends 39% of revenues on R&D compared to 10% for Zoom. Note these years are fiscal years, not calendar years.

Benchmarks 264

Benchmarks Metrics Scale Revenue 264

Tom Tunguz

NOVEMBER 3, 2021

Before, most investors used forward ARR multiples to value companies, but recently, the 100x multiple seems to be a benchmark for SaaS companies raising rounds. I estimated ARR as the annualized revenue of the most recent fiscal quarter. I estimated ARR as the annualized revenue of the most recent fiscal quarter.

Benchmarks 354

Benchmarks Startup Metrics Enterprise 354

SaaStr

MAY 23, 2024

So Emergence Capital put together a great report here on B2B startups, “Beyond Benchmarks 2024” , with a ton of great data across 664 software startups. More on that here: But top quartile is still a great benchmark to compare and learn from your peers: From $1m-$5m ARR, top quartile startups are growing 100% still.

Startup 342

Startup Benchmarks B2B Pricing 342

Tom Tunguz

SEPTEMBER 1, 2021

Revenue, $M. Revenue Growth. -. Amplitude’s revenue growth rate is in the top quartile for modern software companies at 49%. The company spent $47m in 2019 on sales and marketing, and $52m in 2020, an increase of $3m or 6%, while growing revenues 49%. Gross Margin. Sales Efficiency. -. Net Income Margin.

Metrics 243

Metrics Benchmarks PayPal Enterprise 243

FastSpring

APRIL 26, 2022

In part one, we cover benchmarks and common churn formulas. Part I: SaaS Churn Benchmarks Part II: 5 Proven Strategies for Reducing SaaS Churn Part III: Churn Definitions and Additional Resources. Part I: SaaS Churn Benchmarks. When we set churn benchmarks for SaaS companies, there’s so much to consider.

Benchmarks 114

Benchmarks Churn Payments SaaS Payments 114

Clouded Judgement

JUNE 19, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. The charts below show the change in quarterly revenue YoY (so Q1 ‘24 rev - Q1 ‘23 rev) going back to 2017. Beating consensus revenue estimates is the first aspect of a successful quarter.

Cloud 312

Cloud GCP(Google Cloud Platform) Software Azure 312

Tom Tunguz

JUNE 25, 2020

It contains data on go to market team structure, performance by sales function, marketing spend benchmarks, and customer success priorities. We’ve endeavored to include as much data as possible to help companies benchmark themselves relative to others. The presentation is embedded below.

Headcount 364

Headcount Scale Benchmarks Retention 364

SaaStr

SEPTEMBER 7, 2022

What about moving from founder-led sales to building a sales team and scaling your revenue growth? Demodesk’s CEO, Veronika Riederle, and VP of Revenue, Lauren Wright, answer the most pertinent questions on scaling a SaaS start-up as they take us through lessons learned from the three stages of growth. Product-Market Fit .

Sales Hiring 246

Sales Hiring Scale Revenue Sales 246

SaaStr

NOVEMBER 4, 2021

The “Rule of 40” is one of the most commonly cited valuation benchmarks in SaaS for both public and private companies. While SaaS is an amazingly transparent community with abundant benchmarking resources, there are much fewer publicly available studies that allow an analysis of the underlying drivers of “Rule of 40.”

SaaS 321

SaaS Technical Review Benchmarks Azure 321

Tom Tunguz

MARCH 18, 2019

the company generated $107M of trailing 12 month revenue, services 33% of the Fortune 500, grew revenue at 48% and has a net retention rate of 139% across 10,800 customers. Looking at gross margin, which is the revenue minus the cost of goods sold (typically hosting costs and customers success), PagerDuty tops the list of 85%.

Metrics 193

Metrics Benchmarks Software Review Engineering 193

Tom Tunguz

SEPTEMBER 16, 2017

This is a very nuanced question, but benchmarks do provide some guidance for what is reasonable. The chart above shows the sales and marketing investment of publicly traded software companies at different revenue levels. Looking in the outer revenue ranges at $25M, $50M and $100M, that figure asymptotes to about 50%.

Investment 274

Investment Startup Marketing Sales 274

SaaStr

APRIL 30, 2021

120% NRR: Your revenue doubles in 5 years even with no new customers. 110% NRR: Your revenue doubles in 8 years even with no new customers. 100% NRR: Your revenue stays the same with no new customers. A great benchmark for developer-centric mission-critical services. — Jason BeKind Lemkin (@jasonlk) April 20, 2021.

SMB 326

SMB Benchmarks Enterprise B2B 326

Tom Tunguz

AUGUST 26, 2019

24% of revenues are international. The company is currently at $333M in quarterly ARR and generated $265M in trailing 12 months revenues, up from $145M the previous period. At the time of IPO, both DDOG and APPD filed at about $200M in revenue. One last chart: revenue dollars at IPO per venture dollar invested.

Metrics 189

Metrics Benchmarks Scale Investment 189

Clouded Judgement

APRIL 4, 2024

There’s a lot of info to digest, so in the sections below I’ll try and pull out the relevant financial information and benchmark it against current cloud businesses. ” Benchmark Data The data shown below depicts how the Rubrik data compares to the operating metrics of current public SaaS businesses.

Benchmarks 117

Benchmarks Data Cybersecurity Cloud 117

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. But the truth was, the campaign was performing above the benchmark, but it was a new area for them.

Scale 246

Scale SMB Enterprise Sales Hiring 246

SaaStr

DECEMBER 20, 2024

Former Head of Revenue at BILL and HubSpot Americas leader Michelle Benfer recently joined us on a SaaStr Workshop Wednesday share her insights on one of the most critical roles in any SaaS organization: the frontline sales manager. Driving revenue through acquisition, expansion, and retention. Shaping and maintaining company culture.

Sales Hiring 233

Sales Hiring Scale Underperforming Technical Team Sales 233

SaaStr

SEPTEMBER 20, 2023

Discover Bessemer Venture Partners’s annual State of the Cloud report, going through trends, benchmarks, and metrics that underpin the Cloud economy. At the peak of bull market exuberance at the end of 2021, a 1% improvement in revenue growth had the same impact on valuations as a 6% improvement in free cash flow margin.

Cloud 311

Cloud Payments Software Review Payment Solutions 311

SaaStr

FEBRUARY 6, 2024

What’s Good Net Revenue Retention? Maybe no surprise the #1 question they get is “ What should my Net Revenue Retention be ? Nick’s data above indicates that companies with a dedicated CS team have 14 points higher Gross Revenue Retention (GRR) and Net Revenue Retention (NRR). “Try to do better.

Customer Success 314

Customer Success Scale Sales Hiring Benchmarks 314

SaaStr

FEBRUARY 27, 2024

For example, say you have a mature B2B SaaS company doing $650M in GAAP revenue , (GAAP stipulates that revenues are recognized when realized and earned, not when received) and you’re growing 30% year-over-year, but you’re operating with a.4x All the resources supporting the revenue generation should be a guardrail.

VP of Engineering 278

VP of Engineering Scale Marketing Benchmarks 278

Tom Tunguz

APRIL 14, 2020

Sam Jacobs created the Revenue Collective , a group of more than 1700 sales professionals at some of the fastest-growing companies. With chapters across the US, Revenue Collective has broad reach within the sales community. Recently, Revenue Collective surveyed its members about the impact of coronavirus on businesses.

Sales Hiring 275

Sales Hiring Sales Forecasting Travel 275

SaaStr

DECEMBER 2, 2021

22 SaaStr 193: When Does ABM Make Sense and How To Execute The Strategy Effectively, Why Marketing Must Be Held Accountable To A Number Tied Directly To Revenue and What Makes The Truly Special CMOs with Joe Chernov, CMO @ Robin. #21 The post Top 25 SaaStr Podcasts of All Time – Part 1 (#25-#13) appeared first on SaaStr.

Scale 314

Scale Benchmarks Enterprise Leadership 314

Casey Accidental

JUNE 9, 2020

We typically think of monetization as the lifetime value formula, which is how long a user is active along with revenue per active user. Revenue model : How much money you ask from customers and how can play a big role in retention. BONUS: Why are Casey’s benchmarks for consumer transactional businesses lower than others?

Retention 145

Retention Benchmarks Payments Payment Methods 145

SaaStr

AUGUST 26, 2024

They’ll explore strategies for using customer success not just as a support function but as a powerful engine for revenue growth. In this session, Notion’s CRO, Erica Anderson, and GitHub’s VP of Customer Success, Abbas Haider Ali, discuss how customer success teams can take a proactive approach to drive sales.

Benchmarks 299

Benchmarks Finance Business Model Forecasting 299

Tom Tunguz

OCTOBER 11, 2023

First, revenue is fuel. In the last ten years, with capital nearly freely available, many companies have decreased the priority of generating revenue, especially those using product-led growth techniques. Team & company leaders prize revenue growth & cost reduction.

Benchmarks 274

Benchmarks compliance Engineering Pricing 274

SaaStr

MAY 9, 2020

1: Where SaaS Stands Today: Benchmarks and Lessons from 17,479 SaaS Companies. #2: 10: A Step by Step Guide to Revenue Growth with Mark Roberge, Harvard Business School (another SaaStr Classic). . #8: 10: A Step by Step Guide to Revenue Growth with Mark Roberge, Harvard Business School (another SaaStr Classic).

Benchmarks 283

Benchmarks Trends SaaS Revenue 283

SaaStr

SEPTEMBER 23, 2022

To illustrate the turbulence, consider the following metrics: The BVP NASDAQ Emerging Cloud Index (the public benchmark of software performance) has contracted by more than 40%. Take all the macro insights within the context of the big picture: The recurring revenue SaaS model remains as strong as ever.

Cloud 309

Cloud Benchmarks Trends Business Model 309

SaaStr

SEPTEMBER 5, 2023

Now ChartMogul has summarized all this in one very useful chart in their latest report summarizing the data from their 1000s of SaaS customers: The best go from first revenue to $10m ARR in 2 years and 9 months. Let’s call it Just Under 3 Years. The Top Quartile takes just under 4 years to get to $10m ARR. And the Median is 5 years.

SaaS 289

SaaS Benchmarks Startup Investment 289

User Pilot

JULY 14, 2024

That’s one of the questions about user activation rates that we explore in our Product Metrics Benchmark Report 2024. Companies analyzed in the Product Metrics Benchmark Report by industry. Activation has an impact on other product metrics , including revenue. Userpilot’s SaaS Product Metrics Benchmark Report 2024.

Benchmarks 83

Benchmarks Scale Onboarding Metrics 83

SaaStr

OCTOBER 1, 2020

Revenue is a lagging indicator. You want to make sure your net cohort expansion is put into a single, benchmarkable, regression-able number. The next frontier is RPO: The remaining performance obligation gets second billing after revenue. Why is this? Understanding a SaaS Business: The usual suspects for confusion include….

Churn 309

Churn Retention Acquisition Benchmarks 309

SaaStr

MARCH 24, 2021

In his highly informative session, Tomasz Tunguz, the Managing Director at Redpoint Ventures, shares the essential benchmarks you need to track your company’s valuation and where to look to make improvements. Revenue Design: Valuing a Software Company. Growth Investing: Based on revenue growth. Forward Revenue.

Metrics 278

Metrics Banking Benchmarks Investment 278

SaaStr

SEPTEMBER 19, 2023

Some of the changes we’ve seen in the last year or two include: CAC reduction Headcount optimization Price complexity Quality of revenue A different environment means a different strategy, and Notion Capital lays out four business model changes that could be helpful based on what peers are doing. Strive for $150k of revenue per FTE.

Business Model 306

Business Model SaaS Payments Payments Headcount 306

ChurnZero

JUNE 24, 2022

In our webinar, 2022 SaaS retention benchmarks , SaaS Capital Manager Director Rob Belcher shares the results from their 11th annual B2B SaaS benchmarking survey. You can download the full report for net retention and gross retention benchmarks as well as retention metrics in relation to ACV, growth, size, and more.

Benchmarks 98

Benchmarks Retention Software Review Technical Review 98

USIO

MAY 14, 2024

A good revenue share agreement with a payments service provider depends on various factors including your software platform’s volume of transactions, the average transaction size, industry standards, and the services provided by the payment provider. Higher-value transactions might result in a lower percentage share.

Payments 130

Payments Payment Services Merchant Services Payment Solutions 130

User Pilot

JULY 21, 2024

According to our benchmark, the average month-1 retention rate in SaaS companies is 46.9%. Let’s explore our product metrics benchmark and learn: The definition of month-1 retention rate and why it matters. Company size : Smaller companies ($1M-$10M revenue) tend to have higher retention rates (around 47.9%

Benchmarks 93

Benchmarks Retention Healthcare Scale 93

SaaStr

NOVEMBER 15, 2023

Consistently Strong NRR — And Higher Than 2022 Crowdstrike has targeted a 120% NRR benchmark and it’s interesting to see how it’s fluctuated blow over the past 5+ years. This chart of their revenue growth will make your jaw drop: Not much to not like here. ? The majority of their customers use 5 or more modules. #3.

Cybersecurity 299

Cybersecurity AWS Benchmarks Cloud 299

User Pilot

JULY 21, 2024

These are the key questions we explore in the article based on our recent Product Metrics Benchmark Report 2024 which investigates company performance in 6 different metrics across 7+ industries. Companies analyzed in the SaaS Product Metrics Benchmark Report 2024 by industry. Check out our Product Metrics Benchmark Report 2024.

Benchmarks 87

Benchmarks Onboarding Healthcare Metrics 87

User Pilot

JULY 14, 2024

That’s the average core feature activation rate across the companies we studied for our Product Metrics Benchmark Report 2024. Companies by industry analyzed in our Product Metrics Benchmark Report 2024. Companies with annual revenue of $5-10M had the best results (30.4%) and the adoption rates decreased once companies passed $10M.

Benchmarks 87

Benchmarks Artificial Intelligence Underperforming Technical Team Onboarding 87