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5 Interesting Learnings from Toast at $1.5 Billion in ARR

SaaStr

Shopify and Bill both also get the majority of their revenue from financial fees and transaction fees, not software subscriptions. Only Grew Sales & Marketing Expense 12%, and Cut R&D (Product + Engineering) and G&A Expenses Toast has gotten to profitability by truly holding the line on headcount and revenue expenses.

Scale 307
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Clouded Judgement 8.16.24 - The Great Services-To-Software Rotation

Clouded Judgement

Today, IT budgets are roughly broken down into: ~50% headcount / personnel, ~25% software, ~15% hardware, and ~10% outsourcing / consultants. As software grows as a percentage, I think we see headcount / outsourcing shrinking. Companies that do not disclose subscription rev have been left out of the analysis and are listed as NA.

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SaaS Financial Plan 2.0

The Angel VC

If you have a SaaS startup with a higher-touch sales model where revenue growth is largely driven by sales headcount, the plan needs to be modified accordingly. For Enterprise customers, the model assumes pricing increases at the time of renewal but not during the term of the subscription.

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From first touch to qualified lead: How to use live chat for sales

Intercom, Inc.

Increase your leads without increasing your headcount. But one of the major benefits of live chat for sales is that it allows you to capture and qualify more leads without needing to increase headcount. It’s played a critical role in growing Paid Subscriptions business and allows us to create a more personal customer experience.”.

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What It’s Like Running a Profitable $400M Public SaaS Company with Vimeo CEO Adam Gross 

SaaStr

They also have a media segment, a separate business supporting creators who want to do subscription-based video monetization. Vimeo has spent a fair amount historically on advertising, primarily to fuel the more prosumer individual online subscription business. They top out of what you can do in advertising and rev share on YouTube.

AI Search 279
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Customer Success benchmarks: headcount and budgets

ChurnZero

Customer Success benchmark: headcount How many people should be on a Customer Success team? of revenue or less…and overall 64% of respondents reported non-headcount budgets of $200,000 or less: a severe under-investment in this critical business function.” When asked about non-headcount budgets; 8.3%

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Customer Success benchmarks: headcount and budgets

ChurnZero

Customer Success benchmark: headcount How many people should be on a Customer Success team? of revenue or less…and overall 64% of respondents reported non-headcount budgets of $200,000 or less: a severe under-investment in this critical business function.” When asked about non-headcount budgets; 8.3%