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Throughout the year, sales and subscription management teams juggle hundreds or thousands of subscription upgrades, add-ons, and renewals across customer accounts. What if every customer renewal— from estimate to invoice —was predictable and seamless for everyone involved? Predictable forecasting. And increased revenue.
By BluLogix Team The Role of InvoiceForecasting in Financial Planning Introduction Predicting revenue accurately is a game-changer for businesses of all sizes. Invoiceforecasting is not just a financial functionits a strategic tool that helps companies optimize cash flow, improve budgeting, and reduce financial risk.
Finding the right recurringpayment system to process recurringinvoices for your subscription-based business isn't easy. If you're currently looking for the right recurringpayment system, this guide will help. If you're currently looking for the right recurringpayment system, this guide will help.
When can revenue NOT be counted as revenue? The concept of unearned revenue can easily trip up SaaS companies that offer subscription services and products on a recurring basis. Unlike when selling ordinary products, you cannot recognize the revenue earned from a subscription all at once.
By Kegham Khrigian The New Standard for Subscription Renewals: Intelligent, Automated, and Scalable For subscription businesses, renewals are the foundation of predictable revenue and long-term growth. Subscription models thrive on automation, accuracy, and data-driven decision-making and renewals should be no different.
For subscription-based businesses achieving consistent and predictable revenue growth is the holy grail. In fact, monthly recurringrevenue (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.
This week, we saw an economic forecast predict Q1 GDP to shrink nearly 3%. You can see in the graph below just how quickly these economic forecasts have changed. Revenue multiples are a shorthand valuation framework. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue.
By Inga Broerman How High-Performing Subscription Businesses Maximize NRR For subscription-based businesses, Net Revenue Retention (NRR) is the ultimate measure of growth and sustainability. If a business is retaining and expanding existing customer revenue , it can grow without constantly chasing new sales.
Subscriptionrevenue can be defined most simply as a model which generates income from customers through recurring fees that are paid at regular intervals. These can be weekly, monthly, or annual payments. Subscription Pricing Models How to Get Subscription Pricing Right The Advantages of a SubscriptionRevenue Model 1.
It might also boost sales forecasting accuracy by using your enterprise’s historical transaction data to predict future trends more reliably. Revenue multiples are a shorthand valuation framework. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue.
Was it misunderstanding bookings vs. ARR vs. GAAP revenue, was that the issue? With early revenue, you start thinking about churn and scalability of every aspect of the business, including product, infrastructure, customer support, sales and marketing. Mistake #1: Bookings are not revenue. They didn’t make any sense.
We can see this trend in action in the realm of payment processing with the advent of recurringpayments, also known as automatic payments. Industry data shows that subscription-based businesses are growing 3.7x So, let’s dive into the realm of recurringpayments and how they can benefit your business.
By Inga Broerman The 2025 Blueprint for Scalable Growth in the Subscription Economy The subscription economy is entering a pivotal year. To succeed, subscription-based organizations must embrace smarter, more integrated approaches to billing, management, and strategy.
Revenue vs. profit vs. income: The terms may seem synonymous and are sometimes even used interchangeably, but they tell different stories about a company. Revenue growth suggests an expanding business and in-demand product, but whether there is any financial gain for the business is determined by the income.
Unlike traditional subscription-based models that offer predictable, fixed charges, consumption billing charges customers based on the actual use of services. Schedule a demo with a BluLogix billing expert today and take the first step towards revolutionizing your revenue management.
With embedded applied AI and machine learning technologies built specifically for Finance, our platform automates and streamlines workflows, accelerates analysis and improves forecast accuracy, equipping the Office of the CFO to report on, predict and guide business performance. NTM revenue multiple. This implies roughly a $4.2 - $4.8b
Revenueforecasting models help you plan your next phase of growth. The Baremetrics article "The SaaS Financial Model You'll Actually Use" describes how to create financial models you can use to plan out your next steps—even when your total revenue falls short and things don't go as expected. What is RevenueForecasting?
By BluLogix Team How Intelligent Revenue Management Transforms Business Growth Introduction Revenue management has evolved far beyond simple invoicing and billing. Businesses that fail to adopt intelligent revenue management solutions risk revenue leakage, inaccurate forecasting, compliance risks, and operational inefficiencies.
Revenue Modeling for a Subscription vs. Non-Subscription Businesses . Revenue modeling. It’s the most difficult aspect of financial planning, especially for startups that don’t have historical data to extrapolate future revenues. Revenue Modeling: Revenue Growth Over Time. See the following example:
Accurate revenueforecasting is crucial for every business as it informs future valuations, dictates expenses, improves conversions, and even helps navigate economic uncertainty.
Even for seasoned SaaS CFOs that have been in the subscriptionrevenue sector for years, reporting and forecasting can be daunting processes. Not to mention the tight deadlines finance teams frequently operate under.
Generally, software companies follow a beat-and-raise model in their forecasts. The interpretation of this could be one of several things: 1) companies are remaining conservative in their forecasts, 2) selling conditions have worsened slightly, or 3) beat-and-raise scenarios are simply becoming harder to achieve. the guidance) changes.
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.
Long before the digital age, newspaper and magazine companies have been using the subscription model to create and retain a consistent readership for their publications. The most potent benefit of the subscription-based business model is that companies are guaranteed a fixed revenue stream—if they can retain their customers or subscribers.
The charts below show the change in quarterly revenue YoY (so Q1 ‘24 rev - Q1 ‘23 rev) going back to 2017. Q1 Revenue Relative to Consensus Estimates Now let’s dive in to the financial results of Q1 starting with revenue. Beating consensus revenue estimates is the first aspect of a successful quarter.
But if youre relying on your ERP to handle the complexities of IoT or Telematics monetizationdevice-level billing, usage analytics, subscription logic, channel managementyoure setting it up to fail. Schedule a demo with a BluLogix billing expert today and take the first step towards revolutionizing your revenue management.
How can we shift our mindset from reactive to future focused, from assessing past mishaps to forecasting ideal scenarios? Renewals forecasting was historically a sales game, but increasingly, CS teams are responsible for expansion revenue. Choose the right metrics to inform your forecasting model. Where can you start?
Predictable Revenue. Predictable Revenue outlined the four pillars of outbound sales development and talked about how they’re helping companies investigate markets before building out sales teams, and also explained how the company helps customers create a link between targeting and messaging. SaaSOptics . ProfitWell.
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.
Sales teams feel constant pressure to speed up time-to-revenue and quickly close deals. To help take some of the pressure off, companies focus on technology investments to help their sales teams increase win rates and accelerate revenue while automating a lot of the tedious, manual processes that prove to be a bottleneck in the sales cycle.
For the majority of the software universe, Q4 earning season was not a catalyst for future forecasts to go up. Revenue multiples are a shorthand valuation framework. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Overall Stats: Overall Median: 6.4x
By BluLogix Team Mastering the Art of Complex B2B Recurring and Subscription Billing: Navigating Financial Process Complexity in B2B Subscriptions The financial backbone of B2B subscription models rests on efficiently managing complex processes spanning billing, payments, revenue recognition, and reporting.
By BluLogix Team How AI is Transforming Billing Billing has long been a complex and manual process, prone to errors, inefficiencies, and revenue leakage. With businesses adopting diverse pricing modelsranging from subscriptions to usage-based billinglegacy systems often struggle to keep up.
If youve come up in your career through sales, you’re used to living in a world defined by revenue metrics. If youve reached the pinnacle of becoming a chief revenue officer (CRO), you know how to tell a growth story that makes sense to the board and to the market. 1: Net revenue retention (NRR): your valuation growth engine.
By BluLogix Team The Future of Renewal Management: How Automation is Changing the Game Introduction Renewals should be a seamless, predictable part of any subscription or service-based business. Yet, for many companies, theyre a manual headachefilled with last-minute scrambles, missed opportunities, and revenue left on the table.
But that flexibility comes with operational pain points, especially when it comes to predicting revenue. With the right processes and infrastructure in place, however, your usage-based revenue can actually become more predictable over time than it might be in traditional seat-based SaaS.
And their subscription backlog is up 53%. Okta has achieved its ferocious growth with 84% of its revenue in the U.S. Security products often have a local element to them, but this suggests there is still a ton for Okta to run outside of the U.S. Forecasting torrid growth through 2024. NRR at 123% — And Going Up.
Tracking revenue on a spreadsheet is easy, but understanding the underlying factors influencing revenue growth rate is a different ball game. As you read on, you will learn: How to properly define revenue growth. Related metrics that impact your revenue and how to use the insights to turn your product into a growth engine.
Financial forecasting models are used to predict financial outcomes within a specified area of your business, like recurringrevenue or payroll. Adopting this approach provides you with invaluable insights into your subscription-based business, helping you calculate costs, improve budgeting, and allocate resources.
By BluLogix Team The Rise of the Subscription Economy for IT Service Providers Introduction The subscription economy is reshaping how businesses across all industries operate , and IT Service Providers (ITSPs) are no exception.
They explore the unique challenges and opportunities presented by different approaches, from subscription-based models to enterprise solutions. They’ll explore strategies for using customer success not just as a support function but as a powerful engine for revenue growth.
Customer renewals are the lifeblood of a subscription business. Better forecasts improve Customer Success’ standing There’s something in it for CS too. Forecasts help business leaders identify the risk of churn or opportunity of growth in terms of business impact. They rely on forecasts to secure funding and allocated resources.
Stripe is indispensable for the average online business, providing the many different tools, reports, and customizations that power online payment processing, but it isn’t without limitations. For example, the Stripe analytics dashboard is lacking the needed depth for SaaS businesses that rely on recurringrevenue.
By BluLogix Team Subscription Billing vs. Usage-Based Billing: Which Model Wins in 2025? Introduction Introduction Subscription billing has been the backbone of SaaS, telecom, and cloud services for years, but consumption billing is quickly gaining traction. Which model offers the best long-term revenue sustainability?
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