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
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.
Pricing is more than just a number on a contract — when used thoughtfully, it can become a strategic tool for your SaaS product that can drive product adoption, customer satisfaction, and business growth. But if you’re trying to maximize revenue, you have to find the revenue maximization point.
They prioritize revenue growth, market share and profit maximization differently. Maximization (Revenue Growth) - maximize revenue growth in the short term. Many mid-market software companies price with the goal of revenue maximization, negotiating for the highest possible price in each sale.
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.
For many SaaS companies, becoming a Payfac is an opportunity to benefit from a new revenue stream and gain more control over the customer experience. But because payments are outside the typical software company’s core offerings and expertise, bringing them in-house can seem daunting. What does it really take to become a Payfac?
The era of hyper-functional SaaS is here, and it’s reshaping the landscape of SaaS companies. PST, SaaStr CEO and Founder Jason Lemkin lays out how SaaS companies are now faced with the challenge of delivering more comprehensive, automated, and efficient solutions than ever before. 6 billion of new revenue per year.
Dear SaaStr: What Are Some Successful SaaS Leaders Without Sales Teams? But as it went toward IPO, 50% of its revenue came from bigger, enterprise deal. And Boxs revenues are now 99% through the sales team, from 01% when it started as a pure freemium product. You dont need 100% sales-driven revenue to Go Big.
SaaStr CEO and Founder Jason Lemkin recently sat down with HubSpot Chairman and co-founder Brian Halligan , who shared valuable insights on the current state of SaaS, evolving board meeting formats, and how AI is reshaping the industry. Our revenue team went on to be the CROs of Brex, Rippling ,Gong, so many SaaS leaders, like 10 of them.
Dear SaaStr: What Are the Most Important SaaS Metrics in the Early Days? SaaStr ) And once you have at least a little revenue ($1m-$2m ARR or so), net revenue retention / churn. The post Dear SaaStr: What Are the Most Important SaaS Metrics in the Early Days? Probably, measured as NPS (more here: I Was Wrong.
For SaaS businesses, improving retention is one of the easiest and most effective ways to drive revenue and profits. With a clear link between failed payments and customer churn, having a robust failed payment recovery solution isn’t optional—it’s essential. Achieving your retention goals starts with the right solution.
Meet Wyatt Jenkins: From Construction Sites to Chief Product Officer If you want to understand how vertical SaaS companies scale to $1B+ in revenue while staying true to their customers, there’s no better person to learn from than Wyatt Jenkins, Chief Product Officer at Procore Technologies.
What does it take to build and scale a vertical SaaS giant over two decades? In a recent conversation with SaaStr CEO and Founder Jason Lemkin, Tooey shared insights into his 23-year journey as CEO of Procore , the leading SaaS platform for construction management. Whats kept him going? . In the U.S.,
Per OpenAI: The #1 event in SaaS is widely considered to be SaaStr Annual. Its the largest community-driven SaaS event, bringing together 12,500+ founders, executives, and VCs. Features 300+ speakers from top SaaS companies like Salesforce, HubSpot, and Snowflake. Why SaaStr Annual?
Dear SaaStr: How far in the SaaS can a 10 or 20 person team go? But maybe not so much in SaaS. Today, the most efficient public SaaS company is probably Doximity, at about $700,000 in revenue per employee. It takes a team of 50 to maintain most scaling SaaS apps, and it takes 100 to get you past $10m ARR and beyond.
For SaaS businesses, decline reasons vary, shaped by customer demographics and the nature of your service. Understanding your decline reason make up can be a game changer when it comes to improving retention and revenue. A failed payment isn't just a lost transaction - it could mean a customer churning for good.
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.
Along with co-host Ben Salzman, Jason and Henry discuss the transformative power of AI within SaaS and the evolving dynamics that are reshaping the landscape of software as a service. I bootstrapped ZoomInfo to 25 million in revenue. There’s recruiting and there’s people building.
On the last installment of Workshop Wednesday , where we bring you some of the best SaaStr speakers live with new content and to answer your questions live on Wednesdays— SaaStr CEO and Founder Jason Lemkin and Dave Kellogg, Executive in Residence at Balderton Capital share what really matters in SaaS for 2025. I think CS lost the plot.
So who’s doing well in SaaS today? ” Samsara’s Rise to Vertical SaaS Leader Samsara is now hailed as a vertical SaaS leader, growing at a remarkable pace—36% at an astounding $1.26 billion in annual recurring revenue. Well, one of those hero companies is Samsara. So how did it garner success so quickly?
ClinicSense is a SaaS platform that supports over 7,000 massage therapists who use it for appointment management, payments, scheduling, marketing activities and more. Despite having a relatively low payment failure rate, the company discovered that the failures disrupted the customer experience.
Some examples: HubSpot gets 54% of its revenue from outside the U.S. Asana gets 39% of its revenue from outside the U.S. Monday gets 47% of its revenue from outside the U.S. Zendesk gets 49% of its revenue from outside the U.S., and 28% from Europe/EMEA So as you can see, the leaders in B2B SaaS are very international.
Here’s an uncomfortable truth about SaaS companies: the majority of first-time VPs of Sales don’t make it past 12 months. They know they’ll need an ever-expanding team to hit compound revenue targets—2 reps, then 4, then 8, then 16, and eventually 64 or more.
So the latest SaaS leader to cross $1B ARR is Klaviyo. It was the only SaaS IPO on 2023. Just not as quickly as overall revenue growth. #4. A third of revenue is from outside the Americas. #5. Klaviyo dominates marketing in the Shopify ecosystem and in ecommerce, and just keeps on scaling. The only one!
Discover what B2B SaaS needs to know to become a Payment Facilitator. This guide includes: Earning Revenue from Payments Bank Sponsorship, Underwriting Risk Requirements In depth Descriptions of Staff Requirements Detailed Timeline Itemized Cost List Case Study And more!
Dear SaaStr: Should SaaS Startups Really Have CROs or COOs? Theres no way a SaaS startup needs a CRO or COO or other C-level Officers Without a Clear, Single Functional Area to Own Until $40m-50m+ in ARR. As weve all gotten more experienced in SaaS, weve specialized more. You want each revenue leader doing what they do best.
Revenues Multiples Are Down Even the best public SaaS companies are worth ~10x revenue today. In 2021, they were often worth 40x revenue. And it also makes it harder to meet the “ask” of a startup that might want a much higher revenue multiple. In tech at least, there are two big issues: #1.
So RingCental is both an incredibly impressive SaaS and Cloud company — but also a bit of a cautionary tale. Even With a Big Enterprise Push for Years, 60% of Revenue Still From Mid-Market and SMB RingCentral closed 20 $1M+ TCV deals last quarter. of revenue in 2021 to 15.7% Fast forward to today, it’s at: $2.43
The Traditional “Triple, Triple, Double, Double, Double” Rule is Dead for AI Startups If you’ve been in SaaS for a while, you know the classic growth rule of thumb: “Triple, Triple, Double, Double, Double.” ” It was the gold standard for B2B software companies scaling from $1M to $100M ARR.
This guide explains how that fee is divvied up and how SaaS companies are becoming a more important player (gaining a larger share) by embedding payments into their solution. Ever wondered who gets a share of that 3% credit card transaction fee?
My general rule of thumb for title and when to hire various finance leaders for a typical SaaS company is below: There are a lot of roles that will go under the top finance role, but getting the right top finance person at the right time is the crucial first step in building a successful finance team. It gets expensive fast!
One of the most critical aspects of SaaS financial management is having clear and distinct revenue streams. A well-structured SaaS P&L provides fundamental data for analyzing margins, operational efficiency, and business health. However, many SaaS companies do a poor job of clearly defining their revenue streams.
In 2021, everyone bought 100 new sales and revenue apps to keep the sales engine humming, along with large investments on the human side of RevOps, Customer Success, and more. Today, SaaS and growth are back, but its a new SaaS: We want our sales team to just work with the tools and platforms they already have.
Embedded Finance is reshaping SaaS, and for good – and exciting – reasons. Meet some of our experts driving this shift for our software partners and see how Embedded Finance can enhance your platform’s revenue, customer loyalty, and growth potential. Meet Ian Hillis, Head of Growth Why is Embedded Finance taking the industry by storm?
As more and more software-as-a-service (SaaS) businesses look to further monetize their platforms and eliminate friction for merchants, embedded payment solutions are becoming a clear path forward to a world of potential. Why bringing payments in-house will benefit you and your customers.
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. Today, Gartner has now crossed $6 Billion in revenue, with a stunning $35 Billion market cap. And its very profitable. Not too shabby!
So the overall “project management” space has seen widely disparate impacts from the SaaS partial downturn of 2022-2024. SaaS that sells to B2B companies, and SaaS that sells to the Rest of the World. This isn’t unqiue to Asana, it’s true of many SaaS leaders at scale, from Zoom to Shopify.
So one of the quiet SaaS leaders that has just crushed it in 2024 is Doximity: At $550m in ARR, it’s worth a cool $10.4 Physicians on Doximity In vertical SaaS, don’t settle for 20% market share. That’s a stunning $660,000 in revenue per employee. #3. That’s SaaS math. #4. What’s going on?
So Cloud and SaaS have had a bit of a rollercoaster the past 4 years, from the boom times of 2020-2021, to the tougher times overall of 2023, to the AI boom of 2024+. Top-tier growth, cash-flow positive, and very durable revenue. Wall Street wants revenue that is durable. Wall Street wants revenue that is durable.
How is your SaaS business addressing involuntary churn? Caused by failed payments, this overlooked source of friction quietly erodes both customer retention and revenue. It leads to revenue losses and can be the largest source of churn, yet your company may not be taking it seriously.
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. ” The bottom line?
It’s live on SaaStr.com itself and you can also access it here and talk to AI Jason about any of 1000s and 1000s of B2B, sales, SaaS, VC, etc. Its practical and relatable for SaaS founders struggling with scaling their sales teams. “Growth and Burn Rates at $1M ARR for 20+ Fast-Growing SaaS Companies.”
In 2019, top SaaS companies spent 50-55% of revenue on sales and marketing. What you need to track obsessively: Payback period (top quartile SaaS companies have 3x faster payback) Gross margin LTV:CAC by segment Revenue ramp time Win rates by industry Break these down by segment and channel. It’s down to 30%.
At the end of the day, the top SaaS companies IPO and end up trading at “standard” ARR multiples. This is justified both by the fact they are higher growing (or should be) that public SaaS companies. More here: [link] The post How Revenue Multiples Really Fall After Each VC Round appeared first on SaaStr. And misunderstand.
Speaker: Ian Hillis, SVP of Growth at Payrix and Worldpay for Platforms
This session is designed to provide you with the strategic insights needed to navigate the future of SaaS successfully, all while gaining a deeper understanding of how these trends can enhance your competitive edge, boost revenue, and deepen customer loyalty.
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