SaaStr

FEBRUARY 15, 2024

Metronome’s sophisticated billing and subscription management platform enables companies to easily manage and automate complex billing and invoicing processes. Enterprise software–at all stages and check sizes–with a focus on SaaS, Security, Infrastructure and, of course, with an integrated AI strategy.

Scale 289

Scale Software Review Payment Features AI 289

Subscription Flow

FEBRUARY 20, 2024

Before we jump to the meat of the blog, let us quickly go over the bare-bones definition of what exactly is automated billing software and why most small businesses require it. Small businesses require automated billing software because while getting paid is great, sending out invoices is frequently a laborious process.

Payment Solutions 105

Payment Solutions Payment Features Payment Services SaaS Payments 105

SaaStr

APRIL 24, 2021

So many startups these days are claiming they have “ARR” from revenue that … doesn’t recur. Doesn’t ARR stand for Annual Recurring Revenue? But like “Cloud” and “SaaS”, its definitely has evolved. 50% revenue from software (recurring), 50% from payments (not-recurring). .

Merchant Services 360

Merchant Services SaaS Payments Payment Solutions Payment Services 360

SaaStr

JANUARY 24, 2022

I swear I’ve heard as many different definitions of “bookings” as there are flavors of ice cream. Let’s say you receive a contract from a customer that outlines they will pay you $100 for the monthly subscription with an invoice of terms Net 30. Always, my first questions is, “What’s your revenue?”

Finance 334

Finance Outsourcing Services Systems Review Technical Review 334

Stax

JUNE 18, 2024

Subscription models offer companies large and small the opportunity to build predictable revenue and high customer lifetime value. But managing subscriptions effectively and freeing up time and resources for expansion is no picnic. In a subscription business model, customers pay a recurring fee in exchange for a product or service.

Payment Features 88

Payment Features Payment Solutions Payment Services Payments 88

SaaStr

MARCH 21, 2022

You get all the cash up-front (this is how I went cash-flow positive in fact), and your churn almost by definition goes down. Nothing is a bigger headache in a Fortune 500 company than having to go back to procurement every single month to get an invoice approved. I think this is a topic where you get a lot of bad advice.

SaaS Payments 263

SaaS Payments Payment Services Payment Features SaaS 263

Payrix

FEBRUARY 4, 2025

It allows software companies to expand beyond their core subscription-based revenue models by seamlessly offering their customers new fintech products such as funding, deposits, loans, payment cards, and more. How do payment processors secure payments? Fraudsters are everywhere, and theyre getting smarter.

Payment Services 100

Payment Services Payments Merchant Services SaaS Payments 100

Stax

MARCH 6, 2024

For businesses offering subscriptions, memberships, retainers, and other recurring services, recurring billing is a powerful solution to streamline processes and ultimately enhance revenue generation. Consider this: Consumers are already conditioned to the subscription model. Learn More What is Recurring Billing?

Merchant Services 88

Merchant Services Payment Services Payment Methods Payment Features 88

Payrix

FEBRUARY 4, 2025

Listen now Events Driving growth through seamless payments implementation Watch this on demand webinar to learn strategies for a friction-free launch of PayFac-as-a-Service. Read now View all resources The post Master merchant: Definition, types, and examples appeared first on Worldpay for Platforms.

Merchant Services 100

Merchant Services Payment Services Payments SaaS Payments 100

User Pilot

NOVEMBER 27, 2023

Improve business valuation Your company’s valuation is tied closely to its revenue performance, especially because you’re a subscription business. x 100 = 5% Monthly recurring revenue (MRR) Your MRR represents the total predictable revenue your company expects to generate from recurring payments in a single month.

Payments 105

Payments Revenue Payment Features SaaS Payments 105

How To Buy Saas

DECEMBER 20, 2024

Keeping track of the accounting for SaaS businesses can be challenging because of the subscription model that they operate on, and that is why most companies opt for cloud-based software solutions to smoothen the processes. This is an important process as you need to send invoices to customers on time and also collect revenue effectively.

Payment Services 52

Payment Services SaaS Payments Payment Solutions Payment Features 52

SaaStr

MARCH 11, 2021

SaaS then remixed this model by charging less in Year 1 for a “subscription”, but often more over time, especially by Year 3. So the upfront payment for a year isn’t dead. And in the early days, it can definitely help with cash flow, up to a point. The big upfront fee was naturally paid up front, like other software you buy.

Merchant Services 287

Merchant Services SaaS Payments Payment Solutions Payments 287

SaaStr

NOVEMBER 15, 2022

The shift to using SaaS metrics as a common language led to a common definition of what a great cloud business should look like. SaaS Subscriptions as Annuities: It’s common to consider subscription contracts as annuities with an upfront cost. as a common language to analyze a cloud business.

Metrics 277

Metrics Machine Learning Artificial Intelligence Technical Review 277

The Angel VC

NOVEMBER 30, 2017

Since there is no official US-GAAP definition of churn or retention, different companies use different ways to measure and report these metrics. And because public companies are under the scrutiny by the SEC, any non-GAAP metric they report must be accompanied by a razor-sharp definition. What can you learn from this? (1)

Churn 226

Churn SaaS Retention Metrics 226

Intercom, Inc.

MAY 3, 2018

Rohini Pondhi , product management lead for Square’s Invoices product, knows this challenge well. At Square, I manage a product called Square Invoices. For those types of sellers, we offer Square Invoices where they can send a digital invoice to their buyer, and the client can pay online. Rohini: Definitely.

Payment Methods 195

Payment Methods Merchant Services Scale Payment Features 195

FastSpring

OCTOBER 13, 2023

FastSpring provides an all-in-one payment platform for SaaS , software, video games, and digital products businesses, including VAT and sales tax management, payment localization, and consumer support. Payment Gateways , Payment Processing , PSPs, MoRs — What’s the Difference? Interested? Is Stripe a merchant of record?

Payments 155

Payments Payment Methods Payment Services Merchant Services 155

Clouded Judgement

JUNE 19, 2024

Most public companies don’t disclose ARR (and when they do, it’s often not the same definition of ARR as we use for private companies). To calculate implied ARR I take the subscription revenue in a quarter and multiply it by 4. Because of this we have to use an implied ARR metric.

Cloud 318

Cloud GCP(Google Cloud Platform) Software Azure 318

FastSpring

OCTOBER 13, 2020

This may be true in romance, but it’s definitely not true in business. Acknowledge anniversaries on subscriptions and include an opportunity to upsell/cross-sell. Some ideas for cross-sell items are additional products, support subscriptions, product training, bundled protection plans, etc.

Retention 148

Retention Payment Features Payment Methods Payment Services 148

SaaStr

JANUARY 14, 2021

Timing is everything, especially when it comes to subscription-based SaaS models. Key Takeaways: Build a working definition of churn and update with corner cases based on your ongoing learnings. Tim says ForgeRock chooses to focus primarily on ATR when it comes to measuring their churn. Rule 3 – Timing of Churn.

Churn 262

Churn Customer Success Payment Features Subscription 262

Intercom, Inc.

MARCH 10, 2022

From a support perspective, creating FAQs and knowledge hubs should definitely be your first port of call – but what if you could reach your customer before frustration gets the better of them? This end-to-end payment process removes the need to fumble around for customer plans or payment details.

Payment Methods 209

Payment Methods Technical Review Payments Payment Solutions 209

SaaStr

JUNE 3, 2023

Billion, Growing 17% Overall with Subscription Revenue Growing 22%. Yes, it definitely got worse." Check out our full earnings report: [link] pic.twitter.com/07P3aqzBer — Salesforce (@salesforce) May 31, 2023 #4. Workday at $6.8 This is the essentially the same growth rate from 12 months ago. " A: "Yes.

Cybersecurity 245

Cybersecurity Cloud Innovation Subscription 245

SaaStr

NOVEMBER 7, 2023

Yet, Anthropc sends out a detailed list of everything like the core features of appointment scheduling, treatment planning, supply tracking, and billing and invoicing. This accomplishes the pieces you need to do product definition in SaaS. It’s not everything you need for veterinary SaaS, but it’s a start. What’s the data model?

Generative AI 299

Generative AI AWS Artificial Intelligence AI 299

User Pilot

JULY 29, 2024

Nominal data categorizes information without order and labels variables like user roles or subscription types. Monthly Recurring Revenue (MRR) : For SaaS businesses, MRR is a vital metric that shows the predictable revenue generated each month from subscriptions. It is often shown in bar or pie charts.

Data 105

Data Data Analysis User Experience Trends 105

User Pilot

SEPTEMBER 16, 2024

For example, if your product is not competitive enough due to annual subscription plans, you can revamp your pricing model to make it more attractive in your market. This can be done through competitive pricing , increasing marketing efforts, or improving product features to attract more customers.

Development 105

Development Strategy Marketing Technical Review 105

Subscription Flow

OCTOBER 22, 2024

One point of frustration for the businesses is that every country has its own definition for ‘SaaS products’. That is because the jurisdictions in these areas, and their definitions of a SaaS service differ. However, since the SaaS businesses now are more cloud-based than geography-based, this definition of nexus is becoming outdated.

SaaS Payments 52

SaaS Payments Payment Services Payment Solutions SaaS 52

User Pilot

DECEMBER 10, 2023

Revenue run rate is used to calculate any revenue, while actual recurring revenue is used for only recurring revenue. The annual recurring revenue (ARR) is the sum of all revenue generated from customer contracts over one year. In other words, it is the sum of subscription revenue for 12 months + recurring revenue.

Revenue 104

Revenue Scale SaaS Forecasting 104

User Pilot

JUNE 27, 2024

Not to mention paying subscriptions. That's because it has an impact on all other success metrics , including revenue: FairMarkit has discovered that a 25% increase in activation leads to a 34% rise in revenue. It's not surprising: If users don't see the value in the product, they have no reason to use it.

Benchmarks 105

Benchmarks SaaS Social Media Onboarding 105

User Pilot

SEPTEMBER 4, 2024

This actionable metric shows the percentage of trial users who convert to paid subscriptions. Number of free trial users vs trial-to-paid conversion rate The number of free trial users is a vanity metric because it doesn’t indicate how many will become paying customers. Instead, focus on the trial-to-paid conversion rate.

Product Marketing 105

Product Marketing Metrics Customer Lifetime Value Marketing 105

User Pilot

APRIL 30, 2024

This increases the likelihood of subscription renewals and upgrades. These campaigns are often run in isolation from other teams and lack the flexibility to adapt based on ongoing data analysis. Why should SaaS companies invest in growth marketing? Growth marketing helps companies to attract new users and keep them engaged.

Underperforming Technical Team 105

Underperforming Technical Team Strategy Marketing Customer Lifetime Value 105

Intercom, Inc.

JANUARY 16, 2020

Andrey: Definitely that was the case, but on the other side we try to follow our users and usage patterns in the product. “We decided to switch to a team based subscription model which became a huge driver for our growth back in the day. This was back in about 2015. Now we see that this has become a huge trend across SaaS.

Consulting 249

Consulting Marketplace as a Service Scale Development 249

User Pilot

APRIL 30, 2024

Churn rate : the percentage of customers who cancel their subscriptions within a certain time frame. This metric is a direct indicator of how well you can maintain your customer base. A high retention rate implies that customers find continuous value in the product.

Strategy 105

Strategy SaaS Customer Lifetime Value Education 105

User Pilot

JANUARY 9, 2024

Companies with a loyal customer base could consider recruiting existing customers into focus groups and offering to pay them with store/subscription credit instead of cash. Still, most sessions will run you upwards of $5,000, and two sessions are usually the standard to get a representative sample.

Interviewing 101

Interviewing Scale Acquisition Software 101

User Pilot

AUGUST 31, 2023

New customers bring in subscription fees, licensing charges, or usage-based payments, which are the lifeblood of SaaS businesses. Conversion The conversion stage is where potential customers make the decision to upgrade from a trial or freemium account to a paid subscription. What is the purpose of customer acquisition in SaaS?

Acquisition 110

Acquisition SaaS Payments Payment Methods Metrics 110

Chart Mogul

JULY 2, 2021

The definition of ARR seems to have become a point of friction between startups and VCs over the past couple of years, but why? This shift means your typical SaaS startup (launched in the last ~8 years) makes the majority of their revenues from month-to-month subscriptions. What is Annual Recurring Revenue?

Subscription 133

Subscription Payment Features Metrics Churn 133

SaaStr

JULY 22, 2020

One is two thirds enterprise, one third consumer, some healthcare as well now, and I would say, over the last few months, we have still continued with the same areas that we were excited about before so very much in marketplaces and consumer subscription and SAS. And so that’s definitely an area that we’re investing in.

Venture Capital 285

Venture Capital Travel Investment Marketplace as a Service 285

User Pilot

OCTOBER 29, 2023

If you can see the perceived customer value decrease, they may eventually cancel their subscription. WTP Predicts future customer churn WTP can also help you forecast future customer churn – and possibly prevent it. What are the factors that influence WTP?

SaaS 105

SaaS Interviewing Pricing Market Research 105

SaaStr

JUNE 4, 2019

When I left it was six and a half thousand, so that was definitely a fun ride. Definitely recommends their software if you’re in the market for hiring in a better way and helped them from series A through C. You definitely don’t want jargon in your messaging. From there I went to OpenTable. Where do we want to go to?

Sales Recruiting 235

Sales Recruiting Scale Underperforming Technical Team Pricing 235