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Dear SaaStr: How Much Should a SaaS Company Invest in Professional Services? 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.
I’ve invested almost $200m as part of SaaStr Fund / 2024. Make the cold email so great, you’d want to invest based on just it alone. Make the cold email so great, you’d want to invest based on just it alone. Is this the type of investments they do? VCs don’t expect investments to be perfect. They right stage?
With Databricks now one of the largest pre-IPO technology companies, with $10 billion of expected non-dilutive financing and a valuation of $62 billion, Ron’s insights are gold for any revenue leader looking to scale. Our founders focused on adoption first, not revenue, Ron explains. The takeaway? The takeaway?
Q: What are some common mistakes that investors make when evaluating potential startup investments (such as Seed or Series A)? A few I’ve made and watched others around me make: Invest in good traction with a pretty good but not great CEO. Investing when you aren’t sure but someone else really successful is investing.
Studies show the return on investment (ROI) of conversational marketing helps your marketing team drive revenue. Enter conversational marketing — the new paradigm to tackling your business deals and converting prospects in minutes.
Former Head of Revenue at BILL and HubSpot Americas leader Michelle Benfer recently joined us on a SaaStr Workshop Wednesday share her insights on one of the most critical roles in any SaaS organization: the frontline sales manager. Driving revenue through acquisition, expansion, and retention. Shaping and maintaining company culture.
We’re obviously written up a lot about Fundraising and Investing here on SaaStr.com, but time and time again, SaaStr CEO and Founder Jason Lemkin has seen so many Founders sign a bad term sheet based on gut instinct, VC celebrity or vibes, and while that may be fine, it’s not enough.
The purpose of the detailed information is to help investors (both institutional and retail) make informed investment decisions. Today, we capture on average approximately 1% of our customers’ GTV as revenue from their subscription to and current usage of our products.
But it’s clear that it’s still in the investing phase, and increasing spend in sales & marketing. Just not as quickly as overall revenue growth. #4. A third of revenue is from outside the Americas. #5.
Those implementing a B2B sales and marketing intelligence solution reported that they have realized 35% more leads in their pipeline and 45% higher-quality leads leading to higher revenue and growth. More organizations are investing in B2B sales and marketing intelligence solutions. B2B organizations struggle with bad data.
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.
Hello and welcome to The GTM Newsletter by GTMnow – read by 50,000+ revenue professionals weekly to stay up-to-date and scale their companies and careers. GTMfund’s 3 Areas of Focus for Investing Thanksgiving weekend is always a period of reflection and gratitude. We do invest in GTM software, but not that frequently.
Since then, I’ve made some pretty good other investments as well. The top reasons an investment has turned out to be a Zero: #1. If revenue was overstated a bit. The post The Investments Where I’m Going to Lose All My Money appeared first on SaaStr. cash Second was Algolia leading U.S.
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. NVIDIA’s data center business dominated the field, generating $31b in Q4 revenue with impressive margins exceeding 70%.
Because a good customer experience is attributable to better revenue on your end, and higher satisfaction for your customers. Of the companies that have improved CX, how many do you think saw an increase in revenue? Why does your organization need to focus on building a great CX? An enormous 84% of them.
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.
When Graham joined in February of last year, Codeium had approximately 200 customers generating low single-digit millions in revenue, combining self-service and enterprise annual contracts. Without it, longer ramp periods translate directly to lost revenue.
Share everything anyone would want to know to invest in you. But unless you are raising from folks that truly invest pre-revenue, investors are going to want to see 3 strong months of growth in a row. If nothing else, point out an existing investment or two theyve made that is somewhat similar to yours. # Share it all.
So what you see is the steepest decline in ARR multiples by stage that I’ve ever seen in my career investing or as a founder. More here: [link] The post How Revenue Multiples Really Fall After Each VC Round appeared first on SaaStr. But also by the fact that public valuations are back to the lows of many years past.
They risk losing a source of stable, low-cost deposits and non-interest revenue market share, but don’t be fooled. So let's take a closer look at where forward-thinking FIs are investing their resources to stay in the game. This can be sobering for financial institutions – for good reason. FIs still have crucial roles to play.
3 Unexpected Learnings from Datadog’s Marketing Playbook Press relations and analyst activities often contribute almost nothing to the bottom line – Datadog found that many “standard” marketing activities didn’t actually drive customer acquisition or revenue, despite their visibility.
It’s an incredible look back on scaling and more: Colin Jones, first Chief Revenue Officer at Wiz. Colin joined Wiz in February 2021 when the company was near zero revenue. This approach required immense trust from the CEO to invest millions ahead of proven results. He now serves as President of Sublime Security.
With 90% of the Fortune 100 on GitHub and 40% of its $2B revenue coming from AI products, these real-world examples will also help you launch an AI-powered product at scale. Don’t underestimate the investments you need to make here to be compelling to your customers. Another big investment during rapid growth is digital moments.
Dear SaaStr: What Did You Learn From Your Worst Venture Capital Investment? You can’t keep investing in the same companies, at the exact same stage, same valuations, etc. When I’ve cut a corner here and invested in startups with customers that aren’t super-happy, it hasn’t worked out as well. But the NPS/CSAT has to be there.
According to several business analysts and practitioners, ABM is a necessity for creating more predictable revenue. Research shows that nearly three-quarters of marketers (74%) already have the resources needed to build successful ABM programs.
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.
Big customers should churn less on a net revenue basis (including upsells) than small customers. But I’d say 90% of SaaS companies I work with and have invested in don’t get these basics right for a long, long time. And then magic will happen. Because churn is the one thing everyone in the company can impact, on some level.
.” – This one dives into the math of SaaS sales and why hiring top talent is worth the investment. “How Revenue Multiples Really Fall After Each VC Round.” “The Era of the SaaS Decacorn is Here.” ” – A must-read for founders navigating fundraising and understanding valuation dynamics.
SEO: How Rupa Health Dominated Search with Programmatic SEO and AI Rupa Health invested heavily in search, aiming to own the top spots for specific lab tests and biomarkers. These boot camps became a profitable acquisition channel , driving users to Rupas core product and generating millions in revenue.
Think your customers will pay more for data visualizations in your application? Five years ago they may have. But today, dashboards and visualizations have become table stakes. Discover which features will differentiate your application and maximize the ROI of your embedded analytics. Brought to you by Logi Analytics.
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. The post The 6 Most Common Mistakes Founders Make When They Are Just Starting to Scale Revenue appeared first on SaaStr.
in revenue. ” Investing for growth has been pretty flat year over year for SMBs, which means there is money there, but they’re holding onto it. Then, in 2017, with around $50M in revenue, BILL added payment capabilities. Are We In a Downturn? So I call this the wait-and-see economy.” That was probably 2012.
Top 10 EV / NTM Revenue Multiples Top 10 Weekly Share Price Movement Update on Multiples SaaS businesses are generally valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months. Revenue multiples are a shorthand valuation framework. Overall Stats: Overall Median: 5.5x
Most organizations lose around 10% of their revenue due to bad or poor customer experiences. Organizations that invest heavily in customer success earlier see much higher customer retention and loyalty than the competition. But you have to be intentional and clear on what and where you want to invest to drive that high-value impact.
Our revenue team went on to be the CROs of Brex, Rippling ,Gong, so many SaaS leaders, like 10 of them. Engineering resources: With thousands of engineers, companies like HubSpot can make substantial AI investments when they choose to 3. ” “I regretted it almost every day until about a year ago,” Jason answered.
Solving High Volume, Low Conversion at Lattice Dini Mehta joined Lattice at $3M in revenue when it had just 10 people in seat for Go-To-Market and 7 salespeople. From an R&D perspective, they invested in what they called vertical solutions to support those new use cases. So, Calendly decided to invest in going Enterprise.
To make this concrete - if a company got to say ~$25-50m in revenue (I’m making this number up, it’s just illustrative), someone else who is considering competing might be persuaded against it. 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.
It begs the question: is the sales and revenue acceleration space back? But while its the best of times for many new, disruptive players in AI in B2B, its a bit early to see how big a boost it gives overall to the revenue management. It shows budget remains in the sales acceleration space where and when its earned.
Too many expect a material amount of revenue too quickly. 40% of HubSpot’s and Shopify’s revenue comes from partners. In the enterprise, most of ServiceNow’s revenue does. Treat this like a sales pipelinetrack leads, co-selling efforts, and revenue generated from these partnership. Its not a quick win.
By Inga Broerman Overcoming Revenue Leakage with Smarter Billing Practices Revenue leakage is one of the most insidious challenges subscription-based businesses face. Whether through pricing errors, missed renewals, or incomplete billing processes, these small inefficiencies can add up to significant lost revenue over time.
Revenue multiples are a shorthand valuation framework. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. EV / NTM Rev / NTM Growth The below chart shows the EV / NTM revenue multiple divided by NTM consensus growth expectations. Overall Stats: Overall Median: 6.2x
And now it’s transitioning to its third phase, investing big in its more AI focused business offering, Dash, while managing its classic but mature file sharing business efficiently. 43% of Revenue Outside Of U.S. More than 50% of HubSpot’s revenue is outside North America. ARPU Continues to Slowly Increase Across 18.2
Jameson Yung, SVP of Sales at Gong, and Sam Blond, Partner at Founders Fund and previous CRO at Brex, share five tactical ways to get back to growing and hitting revenue targets. The days of working a little for big returns are behind us in the Boom of ‘21, so what can you do to start hitting revenue targets? #1: Revenue matters, too.
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