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Dear SaaStr: When Should a SaaS Company Allow Month-to-Month Contracts vs. Requiring Annual? Nothing is a bigger headache in a Fortune 500 company that having to go back to procurement every single month to get an invoice approved. And that includes pricing. I think this is a topic where you get a lot of bad advice.
Here are the questions we sought to answer by analyzing anonymized subscription data for transactions across various Asian countries (excluding broader “APAC” regions like Australia, New Zealand, and Indonesia): How do customers in Asia’s growing markets prefer to manage their SaaSsubscriptions? averaged 89%.
Why cross border payments are so complicated, even with typical payment providers. How FastSpring drastically simplifies the entire cross border payments process for SaaS, software, mobile game, and other digital product businesses. Greater access to local payment methods. 24/7 buyer transaction support.
Suzanne Xie kicked off her journey in SaaS as the Founder and CEO of Lightwell. These days, as the business lead for invoicing at Stripe, Xie has earned her own stripes in navigating the unique challenges of building and thriving in the SaaS marketplace. What makes a SaaS business so hard? Platforms-as-a-service.
Speaker: Igor Stenmark, Andrew Dailey, &Youssef Yaghmour
Unleashing Usage-Based Pricing to Drive Growth, Customer Satisfaction and Retention: The Why’s, How’s and Roadmap Practical Steps to Making Consumption Pricing Models Simple As companies strive to boost revenue, deliver customer value, and stay competitive, they are increasingly embracing the potential of usage-based pricing.
Revenue growth is up 21% overall, and subscription growth is up 33% — at almost $5 Billion in ARR. It’s driven Atlassian stock up +28% after the results: Is SaaS back? Seat Expansion Driving Growth, Along with Cross-Sell of New Products Long live per-seat models and pricing! So Atlassian is on a bit of a tear.
Her company specializes in API integration platforms that enable SaaS companies to launch integrations faster and automate complex business processes. The post Where AI Really Matters in Vertical SaaS With CEOs of Owner, Alloy Automation, and DoNotPay appeared first on SaaStr.
SaaSpricing isn’t static – it’s a living strategy that grows with your company. In this article we dive into a playbook for pricing across different stages of company growth, inspired by Geoffrey Moore’s Crossing the Chasm. Tiered pricing models emerge to address these differences.
Especially once the renewal cycle heats up and once you have a ton of customers to invoice. But if you have a very inexperienced leadership team (young founders, lack of SaaS experience, etc) then maybe bringing on a strong finance leader earlier makes sense. Below are my rough guidelines for a typical SaaS company today.
As far as an expected timeline - typically companies launch their roadshow ~2-3 weeks after filing their initial S-1 (the roadshow launches with an updated S-1 that contains a price range). Today, we capture on average approximately 1% of our customers’ GTV as revenue from their subscription to and current usage of our products.
With everything in AI moving so rapidly, what’s the best way to price Artificial Intelligence products or SaaS tools with custom AI features and integrations? Should it be subscriptions, usage, solutions, or something entirely different? Why is pricing so tricky? The costs are dynamic. Usage is volatile.
By Inga Broerman How Usage-Based Pricing is Transforming Subscription Billing The subscription economy is undergoing a transformation, driven by the rising popularity of usage-based pricing. Schedule a Demo Today The Shift to Usage-Based Pricing Its an inevitable now. It doesnt matter if its B2B or B2C.
A lot of you reading SaaStr are probably more B2B SaaS oriented and may not be paying attention to the consumer market, but it’s already massive and is continuing to grow quickly. In this week’s Workshop Wednesday, RevenueCat CEO Jacob Eiting and Growth Advocate David Barnard share their annual State of Subscription Apps report with us.
As Checkr follows usage-based pricing, it’s a transactional business that needs to be managed differently than a typical subscriptionSaaS model since they only earn revenue when the customer is using the product. Strengthening the pre and post-sales process ensures a better long-term solution fit.
I remember the first time I tried to do the Old Price-Raise-Without-Notice tactic. But as time went on, we got a bit better at pricing ?? Just to increase Qualcomm to the same pricing everyone else had at their bracket. So we sent them an invoice for $60k, and our champion went … ballistic. Yes, we earned it.
Can integrated payments support subscription billing? Yes, many integrated payment solutions support subscription billing, which is essential for SaaS (Software as a Service) companies. Features to look for include: RecurringPayments : Automated billing cycles (monthly, annually, etc.).
With SaaS sales, annual price or monthly price that’s billed annually? No hiding the monthly option, no pricing confusion: In fact, 26% of Zoom’s customers still pay monthly, even at $1b+ in ARR: More here: 5 Interesting Learnings From Zoom. Then maybe pricing games are worth it. Let’s take a look at Zoom.
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. Magazine subscriptions offered as monthly or annual subscriptions.
Data from Stripe (below) shows the speed at which AI native companies are growing compared to SaaS companies. The bar to hitting escape velocity went up (in SaaS companies vs their on prem counterparts). So you can’t apply the same pattern match to AI company scaling that existed in SaaS company scaling.
ChartMogul’s Free-Forever Launch Plan for SaaS Businesses. Click here for ChartMogul’s free-forever launch plan that will give SaaS businesses access to the world’s first subscription data platform so they can analyze and improve key metrics like MRR, churn and LTV. Where can I find the deal?
Operating a business entails a number of processes like managing products and payments, invoices, customer engagement, revenue, unpaid invoices and much more. That is why most modern SaaS and subscription-based businesses have transitioned to using a good billing software, reducing their workload by a great deal.
Q: How many SaaS companies have 1 million customers? There aren’t that many companies in SaaS with 1 million paying customers. And customer count varies a lot based on pricing / ACV: Dropbox may have the most customers of any SaaS company — 15m+ at $2B in ARR. More here. More here. More here.
SaaStr Annual has always been the go-to event for SaaS founders, executives, and investors, but 2025 is shaping up to be the best one yet. AI is transforming SaaS, and were dedicating two massive stages to the SaaStr.AI 300+ World-Class Speakers This years lineup includes 300+ speakers from the best SaaS and AI companies worldwide.
By embedding payment capabilities directly into existing business systems, companies can eliminate redundancies, improve cash flow, and create a smoother experience for customers and partners alike. Manual invoicing, reconciliation, and transaction approvals require time and personnel, leading to higher operational costs.
This is where the concept of real invoice calculation comes in, fundamentally changing the way organizations approach revenue projection. Schedule a Demo Today What is Real Invoice Calculation? Real invoice calculation is an approach to revenue prediction that goes beyond simple estimates.
Q: Dear SaaStr: When should a SaaS Company allow Month-to-Month contracts vs requiring 12-month commitments? 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. This is probably the most important thing on pricing terms. You have to learn.
Looking to leverage FastSpring’s Digital Invoicing for your SaaS or gaming business? For many SaaS companies, being able to accurately apply tax exemptions across the globe is a vital step for accuracy in quotes as well as reporting when tax time comes around. Sign up for a demo or check out our free trial. What does this mean?
If your SaaS business’s customer base is rapidly growing, you would require a more scalable billing platform to handle high volumes of transactions for you. Getting onboard a robust billing system means benefiting from advanced features like automated recurring billing, customized invoicing, and revenue recognition.
Changing customer expectations, digital advancement, and transforming market trends call for a price discipline. Fair and competitive pricing, especially in the SaaS arena has emerged as a strong requirement for businesses looking for operational stability. What is Dynamic PricingSaaS?
Churn increase due to greater scrutiny of costs Contract values declining More stakeholders involved in decision-making Capchase combined the study with their data set of thousands of SaaS companies and looked at what the best companies do to overcome these hurdles. It could be price, product composition, or payment terms.
Price undisclosed but sounds like >$300m DataStax acquired by IBM. Price undisclosed but sounds like >$1B M&A has followed an interesting arc over the last ~20 years. The promise of SaaS is that growth in the early years leads to profits in the mature years. Moveworks acquired by ServiceNow for $2.9B
A lot of our SaaS older times don’t quite know what to make with a lot of B2B startups these days, let alone some public SaaS companies. So many startups these days are claiming they have “ARR” from revenue that … doesn’t recur. Doesn’t ARR stand for Annual Recurring Revenue?
In scaling the cash-flow side of SaaS, there’s almost nothing more powerful than a nnual contracts combined with prepaid cash. But … to go to annual pricing or not … . Nothing is a bigger headache in a Fortune 500 company that having to go back to procurement every single month to get an invoice approved.
If you’re currently using 2Checkout or Stripe to sell digital goods or SaaS but are considering switching — to the other, or to other options such as FastSpring — you may be wondering whether there are substantial differences between the platforms and their services. They also have an enterprise pricing package called 4Enterprise.
FastSpring previously presented on SaaS fees pricing and packaging to combat stagflation in 2022, but this article is based on an updated presentation delivered in March 2023 by David Vogelpohl. This article offers tips for optimizing pricing and packaging of your SaaS products in a less-than-stellar economy: What is stagflation?
2024 is coming to a close, and it has been a terrific year for SaaS businesses as the industry has witnessed quite a favorable growth. For SaaS companies, accounting becomes one of the most crucial processes to understand their financial and overall business health, and then make informed decisions about future steps.
So growth of the kind of subscription, eCommerce industry has been over 100% year on year for the past five years, according to McKinsey. So the first question is what made SaaS so successful. Customers love SaaS products and tools because it simply works. Why do developers love SaaS products? They love SaaS products.
By Kegham Khrigian From ERP to Agile Monetization: A Roadmap for SaaS Growth For SaaS companies, staying competitive requires agility. Whether its adapting to customer demands, launching new pricing models, or scaling into new markets, agility enables growth. ERP systems lack the flexibility to support these adjustments.
Moving some, all, or simply more of your software offerings from a one-time perpetual license model to a software as a service (SaaS) subscription model can be daunting, but it’s so powerful for building dependable, recurring revenue. Letting FastSpring handle the subscription infrastructure. So that gets complex.
“Doubling Down” is a new series where we hear from top B2B SaaS investors on their most recent activities and takes on the current market. Metronome’s sophisticated billing and subscription management platform enables companies to easily manage and automate complex billing and invoicing processes.
SaaS accounting and finance has gotten pretty complicated, and the impacts of getting it wrong have gone up substantially. I’ve worked with numerous start-ups that used outsourced accounting services with zero SaaS experience, and these firms didn’t even recognize automatic upsells, additional seats, etc. Cash is king.
The promise of SaaS is that growth in the early years leads to profits in the mature years. It shows the number of months it takes for a SaaS business to payback their fully burdened CAC on a gross profit basis. Companies that do not disclose subscription rev have been left out of the analysis and are listed as NA.
OK Gartner is NOT a SaaS or Cloud company. And … 92% of its revenue is from subscriptions. So while not SaaS, it is “Research as a Service” Or something like that. And its stock price is up +35% the last year, and +192% the past 5 years: 5 Interesting Learnings: #1. And its very profitable.
Subscription Models: Usio will provide general insights into why subscription-based payment processing is often considered advantageous for Software as a Service (SaaS) businesses. Predictable Revenue Streams: Subscription models provide a consistent and predictable revenue stream for SaaS companies.
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