Tom Tunguz

MARCH 1, 2025

Which is the best business in AI at the moment? I analyzed Q4 revenue data from publicly traded companies across multiple sectorssoftware companies, consulting firms, and hardware manufacturers to determine which segment dominates the AI market. In second place, Microsoft’s AI business, including Azure, is at a $3.25b Q4 revenue.

AI 247

AI Revenue Azure Consulting 247

USIO

MARCH 7, 2025

Integrated payment solutions offer a streamlined approach, helping businesses cut costs while boosting revenue. By embedding payment capabilities directly into existing business systems, companies can eliminate redundancies, improve cash flow, and create a smoother experience for customers and partners alike.

Payments 130

Payments SaaS Payments Payment Solutions Payment Services 130

Clouded Judgement

NOVEMBER 18, 2024

The document contains a plethora of information on the company including a general overview, up to date financials, risk factors to the business, cap table highlights and much more. There are hundreds of thousands of trades businesses providing essential services in every corner of the country.

Benchmarks 299

Benchmarks Payments Payment Services SaaS Payments 299

SaaStr

OCTOBER 25, 2024

A rough yardstick is that most enterprise-focused SaaS companies tend to get about 8%-10% of their revenues from professional services. A few data points: At $800m ARR, Qualtrics was still getting 25% of revenue from professional services. At $500m ARR, OneStream gets about 8% of its revenue from professional services.

Investment 298

Investment SaaS SMB Enterprise 298

USIO

JULY 1, 2024

In the competitive world of Software as a Service (SaaS), generating recurring revenue is essential for sustainable growth. While many strategies involve significant investments in marketing, sales, and technology, there are also effective methods to boost recurring revenue that require minimal financial outlay.

Payments 306

Payments SaaS Payments Payment Solutions Payment Services 306

Payrix

NOVEMBER 13, 2024

Meet some of our experts driving this shift for our software partners and see how Embedded Finance can enhance your platform’s revenue, customer loyalty, and growth potential. SaaS businesses that embed financial products are seeing a 2-5x revenue increase per user.

Payments 130

Payments Finance Payment Solutions SaaS Payments 130

Tom Tunguz

NOVEMBER 12, 2023

I realized It has been a decade since I’ve updated revenue-per-employee metrics. Revenue per employee spans approximately $200k-$900k. Both these companies also focus on enterprise accounts - in contrast to Bill.com at the bottom, which targets small businesses. Compare that to the benchmarks in 2013!

Software Review 331

Software Review Trends Revenue Software 331

Blulogix

NOVEMBER 6, 2024

By BluLogix Team Predicting Revenue Across Different Timeframes Predicting Revenue Across Different Timeframes Successful financial planning requires an understanding of revenue across multiple timeframes —monthly, quarterly, and annually. This agility helps businesses stay competitive in a fast-paced market.

Revenue 105

Revenue Investment Trends Strategy 105

SaaStr

MAY 22, 2024

And … 92% of its revenue is from subscriptions. Given how critical its research is in selling to the enterprise, I wanted to take a look at its business. Today, Gartner has now crossed $6 Billion in revenue, with a stunning $35 Billion market cap. Steady 14% Growth Since 2013 Has Grown Business From $1.3m

Revenue 292

Revenue Enterprise Cloud Pricing 292

SaaStr

OCTOBER 27, 2024

No one wants to fund a “great business guy” without an A+ CTO there as well. #6. VCs can only invest in folks that can hit $100m+ in revenue or more in 7–10 years. This makes you look less than savvy about your market. #5. Not having a great CTO. It’s just too competitive today. Not growing quickly enough.

CTO 316

CTO Investment Revenue Marketing 316

SaaStr

AUGUST 5, 2024

How do you leverage your customer success team to drive revenue growth? Hook’s Head of Customer, Natasha Evans, took the stage at SaaStr Europa to discuss the three things leaders should focus on to fuel revenue growth. It will help drive revenue growth, which is the name of the game. Where is there risk?

Scale 284

Scale Customer Success Scaling Revenue 284

Tom Tunguz

FEBRUARY 26, 2025

For many founding teams, pricing is one of the most difficult and complex decisions for the business. They prioritize revenue growth, market share and profit maximization differently. Maximization (Revenue Growth) - maximize revenue growth in the short term. First, revenue becomes much more predictable.

SaaS Payments 283

SaaS Payments Pricing Strategy Scale 283

SaaStr

APRIL 28, 2025

CAC Payback Period Predicts Success More Accurately Than Any Other Metric CAC payback period stands above all other SaaS metrics as the most holistic indicator of business health. During pre-revenue, they hired ADRs to book demos specifically for product managers to gather feedback before writing code. The Five Lessons 1.

Scale 260

Scale Transportation Scaling SMB 260

SaaStr

NOVEMBER 6, 2024

Revenue growth is up 21% overall, and subscription growth is up 33% — at almost $5 Billion in ARR. Raising Guidance and Growth Rate for Cloud Revenue To +24% a Year That’s pretty darn impressive growth at almost $5B in ARR, and just as importantly, they’re raising their prediction here. #2. Wall Street is happy.

Enterprise 290

Enterprise Pricing Cloud AI 290

SaaStr

MARCH 7, 2025

When to Hire Executives But there are three other factors that I tell companies to consider when hiring finance leaders (or any other department leaders): Leaders cost Capabilities of current leadership Complexities and needs of the business These factors will help you determine when you need a true CFO.

Scale 315

Scale Finance Headcount Leadership 315

SaaStr

OCTOBER 23, 2024

In 2006, BILL CEO and Founder René Lacerte set out to define a category around financial operations for small and midsize businesses (SMBs). in revenue. ’ Bill is approaching half a million customers, so has a good pulse on small businesses. With SMBs, the smallest business is owner-operated. Are We In a Downturn?

SMB 307

SMB Payment Services Payments Payment Methods 307

Tom Tunguz

SEPTEMBER 16, 2023

Choosing Snowflake’s closest historical quarter by revenue provides a side-by-side comparison of their financial profiles. Metric Snowflake Databricks Calendar Quarter Q2 22 Q3 23 Revenue, $m 388 375 Revenue Growth, y/y, % 85% 51% Product Gross Margin 72% 85% Customers 6,333 10,000 $1m+ Customers 206 300 Implied ACV, $k 61.3

Business 316

Business Cloud Finance Innovation 316

Stax

APRIL 15, 2025

For subscription-based businesses achieving consistent and predictable revenue growth is the holy grail. In fact, monthly recurring revenue (MRR) is one of the most important metrics subscription businesses should be aware of. TL;DR MRR is the average revenue that a company expects to receive each month.

Payments 88

Payments SaaS Payments Revenue Payment Services 88

Tom Tunguz

APRIL 21, 2024

Different accounting rules govern revenue & cost recognition. 1 FCFY is a metric that measures this : how much of a company’s revenue, after funneling through every cost imaginable, is left over in its bank account at the end of the year. Quite a stark difference. That’s my mental model for it, anyway.

Software 296

Software Business Construction Government 296

User Pilot

OCTOBER 19, 2024

In this article, we explore the concept of customer satisfaction – how to measure it, why it is important for your business, and how you can improve customer satisfaction levels. However, what satisfies customers differs from one business to another. What does customer satisfaction look like for SaaS businesses?

Business 111

Business Underperforming Technical Team Customer Lifetime Value Systems Review 111

Clouded Judgement

MARCH 28, 2025

Any disruption of service at this facility could harm our business… We currently intend to add a second data center facility in 2008, the primary purpose of which is to add capacity. By the time they got their competitor up and off the ground, that first mover may already be at $100m+ in revenue and at escape velocity.

Cloud 299

Cloud AI Scale Scaling 299

SaaStr

OCTOBER 4, 2024

In today’s dynamic SaaS landscape of hyperfuncational SaaS, the journey of building a product that customers adore, while simultaneously scaling revenue to nearly $1B, is still quite a feat. They supply their customers with a full marketing suite and customer data software for thousands of SMB, e-commerce businesses.

Revenue 307

Revenue Scale Underperforming Technical Team Sales Hiring 307

SaaStr

JANUARY 20, 2025

The platforms that move first are seeing 70%+ revenue uplifts and dramatically improved retention. But the window for being early won’t last forever. Embedded finance isn’t just a feature – it’s becoming a core part of how the best SaaS companies monetize and retain customers.

Payments 246

Payments Finance Payment Services SaaS Payments 246

SaaStr

OCTOBER 19, 2024

112,000 Views: “What’s New at WordPress with Matt Mullenweg, CEO of Automattic and Co-Founder of WordPress” #3, 79,000 Views: “A Step by Step Guide to Revenue Growth with Mark Roberge, Harvard Business School” #4. 36,000 Views: “Twilio: The Inside Story with Jeff Lawson, CEO/Co-Founder” #9.

Acquisition 284

Acquisition Innovation Startup Engineering 284

SaaStr

MARCH 30, 2024

Dear SaaStr: What are The Most Common Mistakes Founders Make When They Are Just Starting to Scale Revenue? It’s one thing to invest in an area where only 5% of your business is today. Often, you can sort of intuit the business model up to $1m or $2m or so in ARR. Leave the pipedreams for $100m in ARR. And stymie all of them.

Scaling 301

Scaling Revenue Underperforming Technical Team Market Segmentation 301

SaaStr

DECEMBER 11, 2024

To oversimplify’s Doximity’s business model, it’s “LinkedIn for Doctors” has almost every U.S. That’s a stunning $660,000 in revenue per employee. #3. Doximity is growing 20% now, vs. 18% at $450m ARR. Insane profitability. 53% EBITDA. That’s crazy. It rains cash at Doximity. 80% of U.S.

Business Model 274

Business Model SaaS Revenue Marketing 274

The SaaS CFO

MARCH 18, 2025

One of the most critical aspects of SaaS financial management is having clear and distinct revenue streams. A well-structured SaaS P&L provides fundamental data for analyzing margins, operational efficiency, and business health. However, many SaaS companies do a poor job of clearly defining their revenue streams.

Revenue 65

Revenue SaaS Operational efficiency. Management 65

SaaStr

SEPTEMBER 8, 2024

Ryan’s previous company, ImportGenius , was the largest provider of business intelligence to the import-export industry, which gave them access to an extremely valuable list of customers, trade data, and understanding of the international trade market. Measure customer NPS early and make it a key KPI for the business.

Sales Recruiting 322

Sales Recruiting Scale Venture Capital Sales Hiring 322

SaaStr

APRIL 2, 2025

Today it’s at: $800m ARR Growing 22% 20% Free Cash Flow Margins Modest re-acceleration in revenue growth and new customer count — but not NRR Roots are SMB, but 60% of ARR comes from mid-market and enterprise today And a $4B market cap, so 5x ARR Freshworks is getting a bit of a second wind, which is great to see!

Scale 271

Scale AI SMB B2B 271

SaaStr

DECEMBER 17, 2024

When Dan O’Connell stepped into the CEO role at Front , a customer service platform with nearly 9,000 customers and nearly $100M in revenue, it wasn’t his first rodeo. “The worst thing I can do going into a business is dictate ‘this is the way forward,'” Dan explains.

Management 274

Management Scale Company Culture Forecasting 274