SaaStr

DECEMBER 3, 2023

So over the past decade-and-a-half we’ve come up with a lot of yardsticks, metrics and rules for SaaS companies. E.g.,: CAC of < 12 months is Good-to-Great Paying sales reps 25%-30% of what they close is Good A burn ratio of 1 or less is Good These metrics do sort of work, if you have some capital to spend (i.e., They don’t.

SaaS Payments 270

SaaS Payments Metrics SMB Payments 270

SaaStr

SEPTEMBER 25, 2024

What data and metrics do you need to convince SaaS investors you’re in good shape and aligned with what they care about? These metrics are more targeted to those preparing for a Series A or B round and could make the difference between an excited-to-invest-in-you investor and a pass. What gets investors excited about this metric?

Metrics 187

Metrics Sales Hiring Retention Churn 187

SaaStr

AUGUST 7, 2023

Learn about the most important SaaS metrics for founders in 2023 with the CEOs of the most metric-oriented company, monday.com, and the founder of SaaStr. For a quick recap on SaaS metrics: What is ARR in SaaS? So now we must be smarter about the most important SaaS metrics because they matter again. The takeaway?

Metrics 240

Metrics SaaS Sales Hiring Finance 240

SaaStr

JULY 20, 2024

Metrics, Metrics, Metrics The first thing Secureframe thinks about is metrics. If you don’t know your key company or North Star metrics, talk to your investors or other experts to figure out what they should be. So they can take action on the metrics in real time if they’re going in a direction they don’t like.

Sales Recruiting 297

Sales Recruiting Sales Hiring Scale Engineering 297

SaaStr

DECEMBER 26, 2023

So avoid obsessing too much about absolute metrics inside your funnel, especially the metrics between lead and close. And thus a lot of your conversion metrics will actually fall as you scale. Instead, measure them, and usually, drive them up.

Startup 285

Startup Scale Sales Hiring SaaS 285

SaaStr

JANUARY 2, 2024

David Sacks classic post on Burn Rate Multiple is A+ and a key metric for every venture-backed startup. It simplifies a lot of complexity into one metric. However, I’ve seen this metric now misused by many venture-backed startups as a magical health meter for a “good enough” burn rate.

Startup 332

Startup Metrics Revenue 332

SaaStr

OCTOBER 18, 2022

There are so many metrics out there these days on how public SaaS companies are doing. etc, So many metric sometimes it’s a little hard to get a handle on what they all mean. The latest Bessemer Parting the Cloud summarized it all I think with one helpful metric: SaaS multiples are down 75% from a year ago. .

SaaS 71

SaaS Cloud Metrics Pricing 71

SaaStr

DECEMBER 4, 2024

They experimented with pricing and packaging until they figured out how to reduce the limits back down to one user without hurting any of their key metrics. The key theme of how these successful SaaS companies have scaled and adapted their pricing is the value exchange of pricing and what your success metric is.

Payments 260

Payments Pricing Scale Revenue 260

SaaStr

NOVEMBER 8, 2021

So when building out your forecast, do the math and work backwards to the top of funnel metrics you need under this 20-20-20 framework. #2 The favorable consumption-based pricing metrics on this Battery slide speak for themselves. 2 – Product Qualified Lead To Marketing Qualified Lead Ratio.

Scale 351

Scale Cloud Forecasting Pricing 351

Tom Tunguz

NOVEMBER 18, 2021

The company’s metrics all recorded positive gains including gross margin moving from 60% to 70%, which is impressive for a business providing hardware. Using a linear regression on current cloud valuations and a combination of key metrics, about 41-42x which implies about $28-$32b. Revenue, $M. Revenue Growth. -. Gross Margin.

CTO Hire 350

CTO Hire CTO Coach Benchmarks Scale 350

SaaStr

FEBRUARY 8, 2024

NPS is A Great Core Metric. NPS is A Great Core Metric. You can see here, across all of Gainsight’s customer base, the median is 35. You have to at least do that. And ideally, be better than Just Average: More here: I Was Wrong. and [link] I Was Wrong. The post Dear SaaStr: Do Net Promoter Scores Really Matter?

Scale 275

Scale Engineering Acquisition Metrics 275

SaaStr

JULY 25, 2024

You’ll find that, though statistics and metrics matter, they don’t tell the bigger picture and can be misleading or even wrong. If I could choose just one, I’d dump all the metrics and just talk to customers and probably make better decisions,” Jake says. NPS, net promoter score, is sometimes the metric people use.

Scale 296

Scale SMB SaaS Sales Hiring 296

Clouded Judgement

JUNE 19, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., This metric is more self-explanatory, so I won’t go into detail.

Cloud 312

Cloud GCP(Google Cloud Platform) Software Azure 312

SaaStr

APRIL 16, 2024

So when you are out of ideas to grow, move your primary focus to growing your CSAT (customer satisfaction) and NPS (Net Promoter Score) metrics up substantially. Third, focus on metrics besides revenue that matter, and that you can grow right now. Even if other metrics seem OK. The happier they will be. But if usage plateaus?

Startup 309

Startup B2B Metrics Product Marketing 309

SaaStr

DECEMBER 22, 2023

His five lessons are: A single metric that helps guide decisions of when to pivot, when to iterate, and when to pivot. Lesson 1 — The Magic “Scale or Pivot” Metric With so many different SaaS metrics out there, which metric can really steer a business? Let’s take a closer look at these learnings.

Scale 306

Scale Scaling Strategy Sales Hiring 306

SaaStr

FEBRUARY 9, 2023

One metric stood out to me I hadn’t seen presented before: just how many private SaaS companies (i.e., In the latest SaaStr Workshop Wednesday (sign up for FREE here ), Jessica Bartos of Salesforce Ventures did a great deep dive on the state of SaaS and venture in 2013. The full session is below and it’s a great watch.

SaaS 339

SaaS Startup Metrics Investment 339

SaaStr

DECEMBER 29, 2023

Q: As you scale, how metrics-oriented should the company be? ARR asks Jason how he sees the best companies steering into metrics and KPIs to drive performance at a leadership level. Some of his team are more metrics-oriented while others aren’t. Fire anyone that isn’t metrics-oriented. Literally,” Jason says. I doubt it.”

Scale 285

Scale Sales Hiring Customer Success AI 285

SaaStr

APRIL 26, 2024

Culture Structure You want a culture of checking results and having metrics to evaluate those results from the LLM or a more traditional model. You want a culture that focuses on your metrics and evaluating what’s important to you. Whatever the metric is, you have to translate that into a concrete metric.

AI Search 279

AI Search AI Artificial Intelligence Scale 279

TechEmpower SaaS

JULY 24, 2023

What are your key Startup Metrics ? Analytics/Metrics What key startup metrics will you need to track? What metrics will you need for future funding rounds or operations? Are there other founders, business leaders, partners, or administrators? How will you be taking this to market? What channels will you use (e.g.,

Innovation 780

Innovation Development CTO Hire Technical Review 780

Tom Tunguz

NOVEMBER 3, 2021

Second, the correlation between the two metrics and revenue growth is identical at about 36%. I wonder if it’s the right metric long term. The distribution of enterprise value to ARR multiples parallels those of EV/NTM revenue in a few ways. First, the range is similar: 2 to about 100.

Benchmarks 354

Benchmarks Startup Metrics Enterprise 354

SaaStr

JUNE 15, 2024

Maybe share 80% of what’s on your mind, and 80% of your metrics. Be honest, direct, and treat them at least as well as your investors. Just don’t spook them, unless there’s really truly a reason to be spooked. That’s about right. And about enough.

Startup 304

Startup Metrics Leadership 304

SaaStr

MAY 17, 2024

What Metrics Matter Most for Your Roadmap As you put your roadmap together, what should you look at? What metrics and outcomes matter most? So, when looking at metrics for success, you have to look at what’s driving the business forward. You’re optimizing for a metric or outcome. Each product will look different.

Scale 297

Scale Technical Review Sales Hiring Artificial Intelligence 297

SaaStr

JANUARY 7, 2022

It’s time for a data-driven model, that ties to your trailing growth rate and your current metrics. True understanding of customer-acquisition costs and other revenue metrics. At a minimum, have a ton of precision for the next 18 months or so. Without this, folks lose confidence at the Series A stage.

Acquisition 356

Acquisition Metrics Data Revenue 356

SaaStr

DECEMBER 27, 2023

5 Metrics Every SaaS Company Should Care About with Salesforce Ventures A hands-on, practical session on the top SaaS metrics #2. GGV Capital: Scaling The Top SMB SaaS Companies A deep dive on SMB metrics, a really good one. #10. Sign up here to join (and bring your questions) So which were the most popular in 2023?

Scale 285

Scale SMB Generative AI AI 285

SaaStr

SEPTEMBER 25, 2023

As a CMO, Van Vuuren understands this all too well, saying, “As marketers, we can care a lot about the metrics around awareness, audience reach, and database-building and all of those campaign metrics. But the thing that we really need to ensure is that our sales and marketing teams are aligned on the core metrics.”

Enterprise 287

Enterprise Marketing Sales SaaS 287

SaaStr

DECEMBER 24, 2023

Check out this week’s top blog posts, podcasts, and videos: Top Blog Posts This Week: 10+ Signs of a Mediocre Hire The Where, When, and How of AI with Theory Ventures, Open AI and More 15 Signs You Have a SaaS Metrics Problem (and How to Fix it) 4 Recent, Very Bad, Truly Terrible Customer Success Experiences. Just This Week.

Sales Hiring 274

Sales Hiring Scale AI Metrics 274

SaaStr

NOVEMBER 30, 2024

The 90-Day Revenue Test While 30 days is enough to evaluate their hiring decisions, you should see clear revenue improvements within 90 days (or one full sales cycle).

Sales Hiring 304

Sales Hiring Sales Recruiting Sales Headcount 304

Clouded Judgement

MARCH 1, 2024

Update on Q4 Earnings One metric I love tracking in net new ARR added in a quarter. Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. I created this subset to show companies where FCF is a relevant valuation metric.

Cloud 311

Cloud AI Investment Metrics 311

SaaStr

DECEMBER 12, 2023

Keybanc and Sapphire have some great overall metrics here : Overall, the media AE closes $750,000 a year, and that’s actually up from 2022 — mainly due to hiring freezes and contractions. But many of the metrics of those days didn’t really make much sense, with hindsight. In any event, that’s good median data.

SMB 332

SMB Sales Hiring Enterprise Metrics 332

SaaStr

JANUARY 10, 2024

” Mistake #3: Setting the Wrong Metrics and Goals Ryan at Okta made the wrong choice on short-term metrics and led his team in the wrong direction as CMO. At that point, Ryan implemented a balance scorecard at Okta that looked at pipeline generation and other metrics to balance marketing activities and goals.

Sales Hiring 306

Sales Hiring Scale Technical Review Leadership 306