This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
So RevenueCat has its latest “Sate of Subscription Apps 2025” report out and there is a ton of great stuff in here. So they see 40% of all mobile subscriptions — and a ton of data from it. Across a stunning 75,000 paid subscription mobile apps. The data across ~40% of all paid mobile subscription apps in U.S.
As Checkr follows usage-based pricing, it’s a transactional business that needs to be managed differently than a typical subscription SaaS model since they only earn revenue when the customer is using the product. The SMB sales team was incentivized purely on logo acquisition rather than revenue.
AI Speakers: CEO Snowflake + CEO Observe: Where B2B Applications Are Going CEO Box Aaron Levie: AI, Agents and The Next Era of SaaS COO Google Cloud Francis deSouza: Hyperscalers: The Future and More CTO Rubrik: Co-Founder & CTO, Arvind Nithrakashyap CTO Neo4j: Philip Rathle (Valuation $2B+): How Revolut Left Salesforce and More: Rolling Your (..)
Started 10 years ago as “Freshdesk” and a low-end / SMB helpdesk to rival Zendesk, Freshworks has since expanded its product footprint across IT management (Freshservice) and CRM (Freshsales) to a stunnning 49% growth rate at $350m in ARR. 62% of revenue from annual subscriptions. Headquartered in the U.S., NRR of 118%.
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. As Zoom use exploded during Covid, even more SMBs needed Zoom. And as a result, even more chose monthly subscriptions. It’s how big company procurement and budgeting processes work.
Squarespace is at $700m ARR and has 3.7m “unique subscriptions” although it’s unclear how many unique customers that is. Wix is at $1B ARR, worth $15B and added 1 million new subscriptions in 2020. Both it and Wix are a bit murky on customer count vs “subscriptions”, but those are the data we have. More here. More here.
Monetizing ecommerce via subscriptions, but not payment processing. Rather, it charges for software subscriptions to take payments on its websites. It’s very helpful to see this called out for SMBs, and is pretty low for a public SaaS company. But perhaps not that uncommon for higher-churn SMB categories.
While their core web site “Creative Subscriptions” are growing at a still impressive 23% year-over-year, their Business Solutions segment with ecommerce and more are growing 60% year-over-year at $200m in ARR. Efficient at SMB marketing — an ~8 month CAC. Efficient at SMB marketing — an ~8 month CAC.
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. Hiver’s Free Shared Inboxes for SMB. What are they all about? What are they all about?
Overall subscription solutions revenue is up just 21%, while payments and merchant solutions are up 35% — from a much, much larger base. #2. But the explosion of SMB commerce and the price increase to the SMB Shopify plans has meant Plus revenue growth hasn’t outpaced the overall growth of the company’s SMB base.
And with that, it seemed a good time to dig in with one of the great SMB leaders Bill. With a super impressive 111% NRR from SMBs. Only 20% of Revenue from “SaaS”, 80% From Transactions and Float (Fintech) Bill started off 100% SaaS, and slowly and deliberately added payments. Grab the final tickets here!!
Note: FastSpring offers advanced subscription management services that support free trials, monthly and annual paid plans, proration, discount management, and more. How Castos upsells subscription tiers. His podcast hosting company uses data analytics that looks at which users are most likely to grow out of their current subscriptions.
Subscriptions can fuel payments and merchant revenue. As more and more SaaS apps add a payments element, that payments element can really scale over time. As more and more SaaS apps add a payments element, that payments element can really scale over time. You can be both SMB and enteprise consistently.
So many teams are hiring SDR/BDR teams, and it’s really tough to make that work in SMB sales. Firstly, payment should be easy for customers. Allowing monthly subscriptions is important, and credit card payments are key. Who will be looking for this product? Who is the likely and ideal buyer? Mid-Market? Enterprise?
Folks churn out of their Verizon plan, their Netflix subscription, etc. In a low-end subscription model for a tool, not a solution (e.g., Churn is a good term for your SMB and freemium customers. semi-commodity storage, semi-commodity hosting, etc. the dynamics are similar. Like Verizon.
One leader in SMB commerce is Lightspeed Commerce, founded way back in 2005. And their mix of software, payments and hardware revenue drives up the total deal size — but puts a lot of pressure on margins. Software subscriptions are only growing 9%, vs. 41% for payments / transaction revenue. #2.
It may be the most successful SMB-focused app of our current generation. If they churn at the end of a yearly subscription, or 6 months into a monthly one, they’re still gone. Let’s take a look at Zoom. Zoom is even crazier now of course, but Zoom was growing > 100% at $500m in ARR, in an already well-established space.
The core product is very B2C, but the upgrade to paid has very SMB B2B metrics, and 80% of the revenue is subscription based. So it’s doing what Wall Street wants today. But is Duolingo SaaS? Well, it’s SaaS-ish. So at a minimum, it’s a good one to learn from, especially in this PLG and freemium world.
For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs. I consider >120% best in class for companies selling to SMBs (like Bill.com). To calculate implied ARR I take the subscription revenue in a quarter and multiply it by 4.
Then, consumer subscription businesses began pitching using ARR. After all, there’s not much difference between an SMB paying monthly and a consumer paying monthly.
Those of us who’ve been around a while think of New Relic as a freemium and almost SMB tool, but today 77% of their revenue comes from accounts greater than $100k. In New Relic’s case, moving from subscription to consumption based usage has increased net revenue 15%. The multiples just don’t support it.
All the great SaaS companies IPO’ing now have strong revenue retention, whether SMB or enterprise focused. Revenue Retention / Net Negative Churn of 143%. A continued them of our 5 Interesting Learnings Series. Not burning that much cash. Yes, Slack has not been as efficient as Zoom. Again, having a viral app helps a lot here.
was pretty simplified, mostly made up of annual or monthly subscriptions. From 2010 until 2015, the SaaS world was becoming more complex with the introduction of static bundles and recurring revenue as an addition to the annual/monthly subscription model. Era 2, SaaS 2.0: Era 3, SaaS 3.0: New service offerings.
Its focus is on helping companies handle financial routine and streamlining processes related to accounting, banks, stock, and electronic invoicing, among others. Omie main goal is to bridge the efficiency gap in Brazilian SMB, helping customers to be more prosperous. The tool supports multi-currency billing and electronic invoicing.
SMB SaaS companies cannot afford to pay for distribution. At 2 to 4% conversion to paid rates and $5 to $10 monthly subscription fees, the breakeven CPC for these products on search is $0.40. The most successful SMB SaaS companies (Zendesk, Expensify, Square) build communities to drive distribution.
Should it be subscriptions, usage, solutions, or something entirely different? The most common pricing models are: Subscription — per seat or user, freemium, per product with add-ons Consumption — how much you’re using. If so, keep a simple subscription model. Snowflake is a symbol of usage-based pricing.
Channel distribution represents one of the biggest and most important changes in customers acquisition for SMB SaaS startups in quite a while. One of the most interesting examples is Microsoft’s Office 365 SMB business. It’s the most successful SMB SaaS acquisition channel ever built. by Thomas Hansen.
At first glance, SMB SaaS companies, those who sell Software-as-a-Service to small to medium businesses, may seem like any other software company. Successful SMB SaaS companies have reinvented their businesses eschewing the expensive enterprise sales model in favor of end-user centric marketing, support and product development.
In other words, we are now in an era of subscriptions, in which businesses are progressively moving towards subscription-based business models. With subscriptions poised to disrupt the traditional business model, it’s only natural for you to wonder if offering a subscription model can benefit your business.
Net Dollar Retention Shows SaaS’s Best Qualities NDR encapsulates SaaS revenues’ best qualities in one metric: the subscription-based model. For SMB-facing companies, over 110% should be your goal. It’s critical to show investors that you’re bucking the trend of many companies today that generate less demand and aren’t hitting numbers.
On first glance, SMB SaaS companies, those who sell Software-as-a-Service to small to medium businesses, may seem like any other software company. SMB SaaS companies sell to a radically different market than enterprise software companies. On the other hand, SMB SaaS companies sell to firms with 10 employees and $400k in annual payroll.
Integration capabilities Since you probably have other tools in your tech stack, you dont want to keep switching tabs or windows to reconcile invoices or transfer data. Look for an eCommerce payment system that offers plug-and-play integrations with your existing tech stack to minimize development costs.
It may be the most successful SMB-focused app of our current generation. If they churn at the end of a yearly subscription, or 6 months into a monthly one, they’re still gone. This removes friction from the sales process, leading to a higher and faster close rate. Let’s take a look at Zoom. Zoom does not play games.
Since we’ve spoken a lot about credit card processing before, today we’ll take a look at how to find the best credit card processor for your SMB in 2024. Since the big players in the landscape generally all offer a robust set of services, data shows that most SMBs are satisfied with their payment processors and aren’t likely to switch.
Clockify – Best Reporting Features Time Doctor – Best for Employee Monitoring Toggl Track – Best for Holding Everyone Accountable TSheets – Best for GPS Monitoring Tick – Best for SMB Time Management. A lot of companies use time tracking software to streamline payroll and invoicing. Monitoring.
SMB owners wear many hats, managing everything from staff to sales. Adding to the already tough job of managing a small or medium business is the complex task of understanding how payment processing works, including managing the fees, equipment, accounts payable and more. Learn More What is a Payment Management System?
From a Go-To-Market perspective, Zapier uses a hybrid model that involves a combination of freemium offerings, subscription plans, and partnerships. They had been building toward an SMB audience, so hiring 50 people in sales against a product that wasn’t ready for a specific audience would’ve been a mistake. At the same time?
Both of you sell into SMBs, which is a notoriously difficult segment. One of the holy grails of SMB software is, how are you going to acquire customers? Immad: I find it funny that everyone complains about the difficulty of SMB and consumer customer acquisition, but ironically, SMB and consumer companies are some of the most valuable.
For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs. I consider >120% best in class for companies selling to SMBs (like Bill.com). To calculate implied ARR I take the subscription revenue in a quarter and multiply it by 4.
For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs. I consider >120% best in class for companies selling to SMBs (like Bill.com). To calculate implied ARR I take the subscription revenue in a quarter and multiply it by 4.
For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs. I consider >120% best in class for companies selling to SMBs (like Bill.com). To calculate implied ARR I take the subscription revenue in a quarter and multiply it by 4.
The subscription industry is facing intense change as the landscape matures and companies race to stop customer churn related to the Covid-19 pandemic. The subscription industry is entering a retention-led phase of growth. The subscription industry is entering a retention-led phase of growth.
Scaling Enterprise vs. Mid-Market Sales: Key Takeaways from Calendly It’s a common blueprint to start with SMB and mid-market accounts as your ideal customers. As a subscription business, you should always be growing, but the rate of growth wasn’t where they wanted it to be.
For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs. I consider >120% best in class for companies selling to SMBs (like Bill.com). To calculate implied ARR I take the subscription revenue in a quarter and multiply it by 4.
We organize all of the trending information in your field so you don't have to. Join 80,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content