Remove Churn Remove Payments Remove SMB
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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. Into an ERP.

Churn 277
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The Challenge with SMB SaaS: High Growth Can Only Mask High Churn For Just So Long

SaaStr

So in theory, SMB SaaS is better than enterprise, at least 9 times out of 10: Deals close much faster. But beyond all the other Pros and Cons of SMB vs enterprise, there’s one looming issue with SMB SaaS: Churn. Endemic churn. The type of churn you almost can’t do anything about.

SMB 363
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5 Interesting Learnings from ServiceTitan at $840,000,000 in ARR

SaaStr

ServiceTitan, the operating system for the trades, continues to scale impressively, with $772M in FY25 revenue, $800m+ ARR and a clear path to $1B ARR. Net Dollar Retention >110% and GDR of >95%: The Power of Being a True Operating System ServiceTitans NRR consistently exceeds 110%, even with SMB-heavy customers. Thats rare.

Payments 147
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The Complete Guide to SaaS Pricing Strategy

Tom Tunguz

They prioritize revenue growth, market share and profit maximization differently. Maximization (Revenue Growth) - maximize revenue growth in the short term. Many mid-market software companies price with the goal of revenue maximization, negotiating for the highest possible price in each sale.

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5 Interesting Learnings from Squarespace at $700,000,000 in ARR

SaaStr

Over $500,000 revenue per employee. Monetizing ecommerce via subscriptions, but not payment processing. Billion in GMV processed, up a stunning 91% from 2019. But in contrast to Wix and Shopify, it doesn’t keep much of the revenue from merchant services itself. 30% of its revenue outside the U.S.

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5 Interesting Learnings From Bill at $1.4 Billion in ARR

SaaStr

And with that, it seemed a good time to dig in with one of the great SMB leaders Bill. With a super impressive 111% NRR from SMBs. From SMBs. A reminder and a challenge to not settle for < 100% NRR from SMBs. Fast forward to today, and only 20% of its revenue is from software subscriptions.

Payments 297
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5 Interesting Learnings from Bill.com at $220,000,000 in ARR

SaaStr

Now they’ve scaled to $200m+ ARR growing 38% selling just to 100,000+ SMBs, solving a hard problem (i.e., automating the back office and payments and billing for SMBs), and doing it with 120%+ NRR. 121% NRR from SMBs — up from 110% at IPO. Making more and more money on each payment. Pretty impressive.