Tom Tunguz

FEBRUARY 26, 2025

The Hidden Costs of UBP While UBP offers many advantages, it does come with tradeoffs: Complicates churn measurement : If a customer uses your product intermittently (every third month, for example), standard monthly churn calculations will show the account churning and reactivating, skewing your metrics. Sales teams lose leverage.

SaaS Payments 283

SaaS Payments Pricing Strategy Scale 283

SaaStr

APRIL 30, 2022

Check out this 2018 Europa session with Guillaume Princen, Head of France and Southern Europe @ Stripe, where he talks about the metrics you need to be focused on in your startup. If you don’t have the time to watch the whole session, here are the main metrics you should be mindful of. Or maybe ARR, depending on your model.

SaaS Payments 246

SaaS Payments Metrics Payment Methods Scale 246

SaaStr

FEBRUARY 26, 2025

It’s a business model, an organizational framework, and ultimately, a path to building a more efficient, customer-centric company. The $10M ARR Rule for Enterprise Here’s a controversial but important take: If you’re under $10M ARR, stay away from Enterprise.

Enterprise readiness 147

Enterprise readiness Enterprise compliance Acquisition 147

SaaStr

OCTOBER 30, 2024

And there’s a rough metric you can use to meter this: for each 10% of your company you sell roughly, you’re going to give up a board seat. That’s a reality, but it forces you to focus on business models where you always win. Nobody has time anymore, but you don’t want them to control it.

Venture Capital 316

Venture Capital Software Review Investment Startup 316

Tom Tunguz

AUGUST 26, 2020

Today, the company is a massively successful SaaS business and another example of the flywheel business model that creates demand at the individual user and leverages that interest to sell department and company-wide contracts. In this analysis, I’ve compared the metrics of the two companies at the time of IPO.

Payment Solutions 363

Payment Solutions Payments Outsourced Development Payment Services 363

Intercom, Inc.

FEBRUARY 18, 2019

If you have followed us over at Sherlock , you will likely have heard us say many times that product engagement is the lifeblood of any SaaS business. This is because the entire SaaS business model is dependent on people using (and getting value from) your product consistently over time. Correlate with other business metrics.

Engagement 178

Engagement Metrics Business SaaS 178

SaaStr

MAY 25, 2022

Let’s break down this model into two essential parts: The Sword: Having a product-led growth business. Try not to limit your thinking to the economics your VCs want in business economics. No one built a business solely on metrics like TAT, LTV, etc., The Sword: a product-led growth business.

Scale 311

Scale Marketplace as a Service Advertising Business Model 311

SaaStr

JUNE 5, 2020

I argue that standard saas metrics make it possible for founders to scale using debt capital (production capital thats cheaper) instead of solely relying on venture capital (financial capital thats more expensive). . Salesforce’s IPO is also seen as a test of a new business model that could shake up the software industry.

Venture Capital 299

Venture Capital Technical Review SaaS Scale 299

SaaStr

MARCH 29, 2023

Seek ways to help others grow Damien uses what he refers to as the karma business model and suggests everything starts with sharing and giving. As a result, the karma business model is a virtuous cycle. Be clear on your north star metrics Both small and large companies face the tension of being pulled in all directions.

Sales Hiring 241

Sales Hiring Scale Strategy Metrics 241

SaaStr

APRIL 19, 2024

Today that would be a dream, but in 2011, people didn’t understand the metrics around recurring revenue businesses, so investors weren’t sure it was a good business. Certain business models have economies of scale, and some don’t. So, what does it take to get to a $100M outcome?

Engineering 305

Engineering Business Model Pricing Scaling 305

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%. VC funding has decreased 23% quarter-over-quarter in Q2 of this year. Currently, the cloud technology industry has reached about $495 billion.

Cloud 309

Cloud Benchmarks Trends Business Model 309

SaaStr

MARCH 30, 2024

Bad operational model / misunderstanding the burn rate. Often, you can sort of intuit the business model up to $1m or $2m or so in ARR. If you don’t model it properly (and often for the first time) — your burn can creep up on you, no matter how carefully you think you are managing expenses. NPS is A Great Core Metric.

Scaling 306

Scaling Revenue Underperforming Technical Team Market Segmentation 306

Clouded Judgement

JULY 16, 2024

Enables financial and operational planning, budgeting, forecasting and results analysis for individual business functions and the synchronization of those plans across the entire organization. ” How OneStream Makes Money From the S-1: “Our business model centers on maximizing the lifetime value of a customer relationship.

Benchmarks 295

Benchmarks Data Artificial Intelligence Machine Learning 295

Tom Tunguz

JUNE 26, 2022

Their business models differ meaningfully. But revenue growth is more sensitive to market swings, the company discloses fewer operating metrics, and their token offers fewer rights than COIN stock. Coinbase and Uniswap generate billions in revenue. Coinbase’s trailing revenue in Q1 2022 approached $7.5b

Benchmarks 309

Benchmarks Headcount Government Business Model 309

SaaStr

JULY 5, 2023

High NRR is magical, but NRR as a metric isn’t a GAAP metric. And here you can see the magic in Mongo’s business model. Efficiency is a complicated metric. Wow, just an epic product, CEO, business model, and success story. Average Customer Spend More Than Doubles After 2 Years.

Scale 242

Scale cloud efficiency Cloud Business Model 242

SaaStr

OCTOBER 17, 2022

However, your business model will dictate how large the book of business is for each CSM. The 3 key metrics for Customer Success are GRR, NRR, and logo retention. The 3 key metrics for Customer Success are GRR, NRR, and logo retention. NPS is a company metric, not a CS metric.

Customer Success 246

Customer Success Sales Hiring Scale Leadership 246

SaaStr

OCTOBER 7, 2022

About 12 months before we were acquired by Adobe, we had a deep dive meeting and I shared almost all our metrics. Of course I kept some secrets but I shared how our business model really worked, including the nonobvious parts. Let me give you an even more specific example.

Acquisition 263

Acquisition Business Model Metrics Engagement 263

SaaStr

APRIL 20, 2024

The current business model for software companies involves spending a significant portion of revenue on sales, regardless of available tools and automation. Expectations and Performance Metrics For every functional area, employees should show improvement within one sales cycle or they likely never will.

Sales Hiring 306

Sales Hiring Startup Marketing Technical Review 306

SaaStr

JUNE 20, 2022

As Allin explains, “In telling your story, [communicate] your thesis on why you think your company needs to exist, and why you think there is a huge market opportunity…[be] very clear about what your product currently accomplishes, the product roadmap that’s ahead, and the business model that you’re going to use to monetize that.”.

Venture Capital 245

Venture Capital Management Business Model Investment 245

SaaStr

SEPTEMBER 17, 2020

One of the first things that stood out at the time was JFrog’s highly efficient financial metrics. If the PLG strategy is implemented well with a quick time to value, the cost of acquiring new customers and upselling the customers provides for a very efficient business model.”.

New CTO 287

New CTO CTO Benchmarks Consulting 287

SaaStr

OCTOBER 31, 2023

With nine figures in revenue, Ariel and SaaStr founder and CEO Jason Lemkin talk about all things Navan, rebranding when you have brand equity, building B2B software for people, pricing and business models, and much more. They also have a business model that only connects to one content source.

Payment Solutions 288

Payment Solutions Payments Travel Scale 288

Tom Tunguz

JULY 11, 2024

The SaaS business model of the last 20 years for SaaS is a beautiful one. Annual prepaid contracts are free loans to software companies ; seat-based pricing is a tangible metric for pricing ; as a client grows so does this account, producing good net dollar retention.

AI 240

AI Pricing Software Compensation 240

SaaStr

NOVEMBER 9, 2022

If you want to optimize your growth for the long term, consider developing specific priorities in the areas of your business model, customer experience, and employee experience. Business model. If the metrics are heading in the wrong direction, slow down. Give them a chance to grow!

Underperforming Technical Team 49

Underperforming Technical Team Business Scale Business Model 49

SaaStr

MAY 4, 2021

It may seem logical to you, but take this too far and many VCs won’t think the investment fits their business model. You don’t know your core metrics fluently. The best CEOs know their metrics cold, really all of them. “Oh if you want to invest $2m, then the price is $20m. For $3m then it’s $30m.” Don’t do that.

Venture Capital 297

Venture Capital Investment Pricing Business Model 297

Neil Patel

JANUARY 24, 2023

There are very real, specific metrics that show you how well your content is performing. There are also vanity metrics out there that can be more distracting than worthwhile. That’s why in this content marketing guide , I’m going to give you the most valuable content marketing metrics for evaluating the performance of your content.

Content Marketing 120

Content Marketing Metrics Payment Methods Marketing 120

User Pilot

JANUARY 15, 2024

With an abundance of product analytics to track, having a robust SaaS KPI dashboard is essential to monitor the metrics that matter most. TL;DR A SaaS dashboard can be used to track important metrics and key performance indicators. You need to set goals and gather data to properly track metrics through your SaaS dashboard.

Metrics 105

Metrics SaaS Customer Lifetime Value Retention 105

SaaStr

NOVEMBER 25, 2022

They demonstrate spectacular growth and expansion while revolutionizing and disrupting industries with new business models. How Atlassian does business . The Atlassian business model is unique. Scale-ups are exciting. This clarity will help you hold your team accountable for your goals.

Scale 264

Scale Scaling Marketplace as a Service Entrepreneurship 264

SaaS Metrics

JUNE 29, 2024

The Pay-As-You-Go SaaS Business Model: Pros and Cons - Discover how this flexible model can transform your business, but is it worth the challenges? The post The Pay-As-You-Go SaaS Business Model: Pros and Cons first appeared on SaaS Metrics.

Business Model 59

Business Model Business SaaS Metrics 59

User Pilot

FEBRUARY 26, 2024

Digital product metrics reveal how customers interact with your product. However, not all metrics are created equal. In this article, we hone in on the best metrics for product teams looking to drive product growth. We discuss 15 of the most important metrics and examine what to consider when choosing which metrics to track.

Metrics 104

Metrics Customer Lifetime Value Scale SaaS 104

SaaStr

JULY 12, 2024

How do you drive business around that? They want the overall pie to be as big as possible, and their entire business model is predicated on capturing a small piece of what is hopefully an extremely large pie. They needed to do more than just visualization to build a large business, particularly in the observability space.

Scale 297

Scale Scaling Sales Hiring Sales Recruiting 297

Baremetrics

FEBRUARY 6, 2022

Managing the customer journey means understanding context and measuring the right metrics. Customer experience (CX) is a critical component of modern business management, but it’s far too easy to get lost in the sheer mass of available data. Customer goals need to be aligned with business goals. It really is that simple.

Metrics 106

Metrics Social Media Scale Churn 106

User Pilot

DECEMBER 3, 2021

When it comes to measuring product growth , there are dozens of metrics to consider, but which is the most important? Today we’re going to talk about what the SaaS magic number is, how to calculate it, and what effects it can have on your business. In essence, the SaaS magic number is a metric that measures sales efficiency.

Metrics 105

Metrics SaaS Scale Churn 105

SaaStr

AUGUST 17, 2022

A successful, growing business depends as much on its metrics as it does on its people. It doesn’t matter what metric you use, but look at your deals every month and decide whether they were good or bad. Even if monthly quotas don’t seem to fit your business model, Bill would suggest it anyway. Score your deals.

Sales Hiring 245

Sales Hiring Sales SaaS B2C 245

SaaStr

SEPTEMBER 2, 2022

Investors look for specific metrics to see whether you stand out from the crowd, ranging from your market expansion potential to your product vision and product-market fit. Business model expansion: where you might monetize parts of your product that you weren’t previously. PMF metrics will differ depending on your product type.

Scale 244

Scale Retention Metrics Product Marketing 244

SaaStr

JULY 24, 2023

High NRR is magical, but NRR as a metric isn’t a GAAP metric. Here you can see the magic in MongoDB’s business model. Efficiency is a complicated metric, and Mongo isn’t wildly efficient, even at $1.5B . #5 — The Average Customer Spend More Than Doubles After Two Years. But you know what isn’t? Revenue growth.

Revenue 245

Revenue Scale Sales Hiring Cloud 245

SaaStr

MARCH 1, 2024

GenAI and the Business Model Perspective From a business model perspective, a few things are happening. Take out your P&L or metrics dashboard and go through every metric. They hope to reach 50%. ARPU, ACV, and LTV are increasing. How do you tackle those and throw resources at them?

Generative AI 298

Generative AI Outsourcing Services AI Software Review 298

User Pilot

OCTOBER 26, 2021

Is the "North Star Metric" just another bit of SaaS jargon somebody has coined to rename something everybody already knows about? What other SaaS companies use the North Star Metric and how can you find yours? In this article, I'll go over what the North Star is, why this metric matters, and how to find yours.

B2C 98

B2C Metrics B2B Retention 98