SaaStr

OCTOBER 11, 2023

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.

Payments 296

Payments Merchant Services Payment Solutions Revenue 296

SaaStr

APRIL 17, 2021

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.

Payment Methods 338

Payment Methods Merchant Services Payments Payment Services 338

SaaStr

AUGUST 28, 2024

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. Fast forward to today, and only 20% of its revenue is from software subscriptions. Shopify has seen the same trend with its SMBs as well. Grab the final tickets here!!

Payments 295

Payments Payment Solutions SMB Acquisition 295

SaaStr

APRIL 8, 2020

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?

Machine Learning 306

Machine Learning Artificial Intelligence SaaS Consulting 306

SaaStr

NOVEMBER 19, 2020

Subscriptions can fuel payments and merchant revenue. You don’t have to leave your SMBs behind as you go upmarket. You can be both SMB and enteprise consistently. But maybe don’t do that if it isn’t best for the customers. Making the free trial even more free worked for Shopify. It can work for you.

Payments 363

Payments Merchant Services Payment Solutions Scale 363

SaaStr

JULY 14, 2020

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.

Pricing 304

Pricing Scale Payment Solutions SaaS Payments 304

SaaStr

NOVEMBER 2, 2022

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.

Scale 320

Scale B2C SMB B2B 320

SaaStr

APRIL 19, 2023

One leader in SMB commerce is Lightspeed Commerce, founded way back in 2005. Software subscriptions are only growing 9%, vs. 41% for payments / transaction revenue. #2. Driving up ARPU at scale key to growth with SMBs. It’s exciting to sell to SMBs, but one of the existential challenges at scale is the low deal sizes.

Payment Solutions 287

Payment Solutions Point of Sale Payments SaaS Payments 287

SaaStr

DECEMBER 14, 2020

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.

Churn 362

Churn Sales Hiring Systems Review B2C 362

Tom Tunguz

SEPTEMBER 17, 2012

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.

SMB 100

SMB SaaS Branding Payment Features 100

Tom Tunguz

AUGUST 2, 2016

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.

Outsourcing Services 113

Outsourcing Services SMB Acquisition Scale 113

SaaStr

MAY 1, 2021

As Zoom use exploded during Covid, even more SMBs needed Zoom. And as a result, even more chose monthly subscriptions. Zoom monthly billing exploded to 50% of ARR as SMB use grew 5x during Covid! So there is a natural continuum of how customers like to pay, and how they are comfortable paying. A great example is Zoom.

Payment Features 296

Payment Features Scale SMB Churn 296

Tom Tunguz

APRIL 16, 2013

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.

SMB 100

SMB Scale Startup SaaS 100

SaaStr

DECEMBER 27, 2020

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.

Scale 342

Scale Outsourced Development SMB Cloud 342

Tom Tunguz

JANUARY 26, 2021

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.

SMB 279

SMB Startup Trends Subscription 279

Tom Tunguz

APRIL 25, 2012

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.

SMB 100

SMB Scale SaaS compliance 100

SaaStr

APRIL 28, 2019

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.

Scale 279

Scale Venture Capital SMB Enterprise 279

SaaStr

NOVEMBER 28, 2022

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. While annual/monthly subscriptions still exist, they are more complex than ever.

Scale 246

Scale Finance Sales Hiring Scaling 246

SaaStr

MARCH 8, 2024

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.

AI 271

AI Artificial Intelligence Pricing SaaS 271

Clouded Judgement

JUNE 19, 2024

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.

Cloud 318

Cloud GCP(Google Cloud Platform) Software Azure 318

FastSpring

JANUARY 27, 2022

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.

Merchant Services 146

Merchant Services Payment Services SaaS Payments Payment Solutions 146

SaaStr

FEBRUARY 14, 2023

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.

Metrics 262

Metrics Marketing SaaS SMB 262

SaaStr

JUNE 27, 2019

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.

Pricing 192

Pricing SaaS Payments Payment Solutions Payment Services 192

SaaStock

JANUARY 25, 2019

Omie main goal is to bridge the efficiency gap in Brazilian SMB, helping customers to be more prosperous. Omie is the only SaaS company figuring among 100 fastest growing SMB in Brazil, according to Deloitte Consulting, ranking #3. It is a helpful tool for businesses based on a subscription model, as well as various other companies.

SaaS Payments 257

SaaS Payments Payment Solutions Payment Methods Payments 257

SaaStr

FEBRUARY 9, 2024

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?

Scale 319

Scale Sales Hiring Sales Marketing 319

SaaStr

JUNE 1, 2021

I’m going to skip by my life story, and how I grew up as a small child in India, and how the dusty streets influenced my take on unit economics, and SaaS subscription models. Do not…,” and the reason is no one hardly ever has succeeded in building a big business in SMB. I’m paraphrasing… [laughter].

Part-Time VPE 293

Part-Time VPE Technical Cofounder CTO Hire New CTO 293

Andreessen Horowitz

APRIL 23, 2024

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.

Payments 110

Payments Forecasting Payment Services Sales Hiring 110

FastSpring

OCTOBER 18, 2018

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.

Payment Features 67

Payment Features Payment Services Subscription Payment Methods 67

SaaStr

NOVEMBER 1, 2019

About the episode: Tien Tzuo is the Founder and CEO of Zuora, one of the fastest-growing SaaS companies that has been at the forefront of the rise of subscription business models. 9: Clarizen Board Member Paul Albright on Why It Is Harder To Go Enterprise Down, Than SMB Up. Episode No. What are the inherent challenges to this switch?

Technical Review 207

Technical Review Development Team Review Software Review Scale 207

SaaStr

JANUARY 24, 2024

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.

Scale 276

Scale Sales Hiring Scaling Revenue 276

OPEXEngine

MAY 18, 2021

SaaS metrics are viewed differently at different stages of growth and for different sales models, primarily whether a company is selling into an SMB or enterprise marketplace. ARR is an essential subscription metric that identifies the recurring revenue expected on an annual basis from the subscriber base. Usage Fee-Based ARR.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

Clouded Judgement

OCTOBER 3, 2024

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.

Cloud 167

Cloud Software Benchmarks Retention 167

Stax

APRIL 3, 2025

Keep in mind that the right solution for a startup or SMB may not necessarily be the best for large firms or high-volume enterprises. A SaaS company with subscription billing would opt for a solution with enterprise-level support, custom pricing, and fraud protection. Steer clear of providers that keep these fees hidden.

Payment Methods 88

Payment Methods Merchant Services Payment Solutions Payment Services 88

Clouded Judgement

APRIL 11, 2024

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.

Cloud 184

Cloud Software Azure AWS 184

Clouded Judgement

DECEMBER 21, 2023

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.

Cloud 184

Cloud Software Benchmarks Retention 184

Clouded Judgement

SEPTEMBER 12, 2023

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.

Cloud 176

Cloud Software Benchmarks Retention 176

Clouded Judgement

APRIL 12, 2023

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.

Cloud 167

Cloud Software Benchmarks Retention 167