Tom Tunguz

APRIL 21, 2024

In “Do software companies actually have good margins?”, ”, Benn Stancil makes a case for a counterintuitive point : Software companies are much less profitable than they might seem. Because the research & development costs associated with software should be part of their cost of goods sold.

Software 284

Software Business Construction Government 284

Clouded Judgement

FEBRUARY 14, 2025

Every week I’ll provide updates on the latest trends in cloud software companies. Will the macro turn in favor of software buyers? We’ll see how the rest of software earnings shake out - but so far I’d categorize the guides / outlooks for the year as “meh” at best. We’ll see!

Cloud 144

Cloud Software Subscription Payment Features 144

Tom Tunguz

OCTOBER 28, 2024

On Monday, at TC Disrupt Colin Zima CEO of Omni , Jordan Tigani CEO of Motherduck , Daniel Svnova CEO of Superlinked & Toby Mao CTO of Tobiko Data who are leading the evolution of the Post Modern Data Stack discussed the trends they are seeing. Here are some of the themes & predictions from the group. New BI systems will enable both.

Trends 242

Trends Data New CTO CTO 242

Payrix

JANUARY 28, 2025

In this episode of PayFAQ: The Embedded Payments Podcast, host Ian Hillis welcomes Matt Downs, President of Worldpay for Platforms, to discuss software-led payments predictions for 2025 and beyond. He highlighted three pivotal trends for 2025: Regulatory shifts : As the U.S.

Payments 130

Payments Payment Solutions Merchant Services Payment Methods 130

User Pilot

OCTOBER 19, 2024

Think of Net Promoter Score (NPS) software as a tool to measure your customers’ feelings about your product, and categorize them based on their level of loyalty (promoters, neutrals, and detractors). Get real-time insights into your survey responses, with visual breakdowns of data, NPS score, and trends.

Software Review 105

Software Review Technical Review Software B2C 105

SaaStr

JANUARY 30, 2023

I know things can be tough out there but Gartner last week still predicted enterprise software would grow 9.3% But — the cuts aren’t really coming in enterprise software budgets. Gartner is predicting enterprise software spend will grow a stunning 9.3% But Software? in 2023 to $4.5 projected last quarte r.

Software 326

Software Enterprise Cloud Trends 326

SaaStr

MARCH 24, 2025

Customer Expectations Are Skyrocketing AI has raised the bar for what customers expect from software. AI Will Deflate Pricing in Some Areas AI is making some categories of software look expensive. One Thing is Clear: AI Makes a Lot of Business Software Look Awfully Expensive Today. It has to deliver real, tangible value.

AI 147

AI Trends SaaS AWS 147

SaaStr

DECEMBER 31, 2024

Rippling CEO Parker Conrad’s Theory of the Compound Startup: Disrupting How We Think About Software #5. 2024/2025 State of SaaS: Trends and Predictions with SaaStr CEO and Founder, Jason Lemkin And come see 200+ top SaaS, Cloud and AI sessions like these at 2025 SaaStr Annual, May 13-15 in SF Bay!!

Cloud 261

Cloud AI Startup Trends 261

SaaStr

SEPTEMBER 14, 2020

A few key learnings and top trends to consider: #1 There is unlimited potential; even with COVID ‘craziness’ As we continue to face and adapt to the challenges of COVID-19, many companies are turning to Cloud for Business Continuity and growth. 2 Cloud is Eating Software. The astonishing fact is: cloud is eating software.

Technical Review 350

Technical Review Cloud Software Review Technology 350

Tom Tunguz

JANUARY 12, 2022

In the last few weeks, public software company multiples have halved. Beyond the most recent cycle, how often do the web2 and web3 software markets move in synchrony? Beyond the most recent cycle, how often do the web2 and web3 software markets move in synchrony? The cryptocoins appreciated much more than software.

Software 328

Software Marketing Trends Startup 328

Tom Tunguz

NOVEMBER 9, 2023

Vendr’s quarterly report on SaaS purchasing trends summarize the sentiment of the software market. The average sales cycle has lengthened from 32 to 44 days for net new software, a 37% increase. Slower cycles & fewer new purchases : 19% of software purchases are net new in 2023 ; just 17% in Q3.

Software 286

Software Trends Pricing Data 286

SaaStr

FEBRUARY 2, 2025

Activant Capital brought together at SaaStr Annua l a group of break-out next-generation AI enhanced vertical software leaders: the CEOs from Owner.com, Alloy Automation, and DoNotPay. At SaaStr Annual they shared their experiences and insights on implementing AI in vertical software companies.

AI 222

AI Technical Review Artificial Intelligence Systems Review 222

SaaStr

FEBRUARY 12, 2025

The Evolution of Vertical SaaS The shift from horizontal to vertical SaaS solutions represents a fundamental change in how enterprises buy and implement software. They don’t just build software they become construction industry experts. Efficient Growth : Word-of-mouth in tight-knit industries reduces customer acquisition costs.

Construction 251

Construction Scale SaaS Travel 251

Stax

MARCH 16, 2025

The average churn rate for the software industry as a whole is 14%. As a SaaS business leader, reducing software user churn is an important part of maintaining your customer base and increasing revenue. TL;DR The average software industry churn rate is 14%, but SaaS companies should aim for under 2%. Looking to measure churn?

Payment Solutions 88

Payment Solutions Software Review Churn SaaS Payments 88

Tom Tunguz

NOVEMBER 1, 2022

I wondered if a similar pattern existed in the public software markets. Actually, the opposite is true: software companies spend more on R&D (research & development) & less on Sales & Marketing (S&M) as a percent of revenue today than six years ago. The trend is consistent & apparent across all quartiles.

Software 290

Software Trends Revenue Startup 290

Tom Tunguz

MAY 3, 2023

The P&L differs from a classic software company. For that trend to reverse, compelling businesses need to be built. What other business suffered a loss of 80% of revenue & went from burning $2b per quarter to producing more than a hundred million in profit? So does the corporate structure. Net Revenue, $m 251.6

Software 280

Software Trends Revenue Investment 280

SaaStr

FEBRUARY 2, 2024

Jason now has 5 investments at $200m+ ARR that are all cash-flow positive (which is necessary today), and there’s one clear trend he’s seen in today’s new efficient world: The New Normal is 700 Employees at $200,000,000 in ARR (or $300,000 per employee) at the average public SaaS company. See, told you things were up in 2024).

Sales Recruiting 313

Sales Recruiting Trends Sales Hiring Software Review 313

Payrix

NOVEMBER 7, 2024

At Payrix from Worldpay, we have an internal team of risk management experts dedicated to helping software companies, like yours, manage payment processing, fraud prevention, and compliance. Such innovations save time and mitigate potential losses for our software partners and their users. Here’s what they want to know. compliance.

Merchant Services 130

Merchant Services Payment Services Payment Solutions Payments 130

SaaStr

DECEMBER 1, 2021

The state of software buying has changed. During SaaStr Annual 2021, Amanda Malko, CMO at G2, shared a fascinating look at the data that reveals shifting patterns in the way consumers purchase software. . Furthermore, 55% of companies plan to increase software spending in 2022.

Software Review 284

Software Review SMB Enterprise Software 284

Tom Tunguz

NOVEMBER 8, 2023

At the IMPACT Summit yesterday, I shared our Top 10 Trends for Data in 2024. Data Teams are Becoming Software Teams : DevOps created a movement within software development that empowers developers to run the software they wrote. Software startups are rising to meet the need. The same thing is happening in data.

Artificial Intelligence 220

Artificial Intelligence Trends Data Software Review 220

Clouded Judgement

AUGUST 16, 2024

Every week I’ll provide updates on the latest trends in cloud software companies. Subscribe now The Great Services-To-Software Rotation There's a lot of debate right now about the economic impact of GenAI. And that shift will dramatically expand the size of software markets (and the equity value created).

Outsourcing Services 274

Outsourcing Services Cloud Software Outsourced Development 274

Tom Tunguz

FEBRUARY 26, 2025

Many mid-market software companies price with the goal of revenue maximization, negotiating for the highest possible price in each sale. There are exceptions: Oracle’s database, Tanium’s security product, Workday’s human capital management software. Application software companies typically sell seats.

SaaS Payments 273

SaaS Payments Pricing Strategy Scale 273

Tom Tunguz

SEPTEMBER 20, 2023

in revenues growing at 37% places the business in the top quartile of public software companies. is in line with most other software companies. The Cisco acquisition continues the trend of take-privates that includes New Relic for $6.5b , Qualtrics for $12.5b , Software AG for $2.4b. Metric Value Revenue, $b 3.64

Trends 202

Trends Software Review Acquisition Pricing 202

Clouded Judgement

JUNE 19, 2024

Q1 was a very weak quarter of software earnings. I’m calculating FCF by taking the Operating Cash Flow and subtracting CapEx and Capitalized Software Costs. Some software companies also have seasonality in the “payback.” net retention and CAC payback). Subscribe now What Happened in Q1?

Cloud 318

Cloud GCP(Google Cloud Platform) Software Azure 318

SaaStr

JANUARY 17, 2025

Key Takeaways The discussion highlighted how AI is not just another feature but a fundamental shift in how software products are built and consumed. Pricing Strategy : Consider whether AI features should be packaged as part of existing products or as separate offerings, based on how value scales with usage.

AI 261

AI Cybersecurity User Experience Scaling 261

FastSpring

OCTOBER 11, 2024

When you’re expanding your software business into new regions, industry benchmarking data can help you make better strategic decisions by answering important questions about business in the region. If you’re selling software at the same price into both the U.S. This means that, for example, for every 100 U.S.

Merchant Services 158

Merchant Services SaaS Payments Benchmarks Subscription 158

The SaaS CFO

JANUARY 28, 2025

The high-flying times of 2021 are over, but it doesnt mean you cant be successful in software M&A. I recently sat down with Jim Williams, Managing Director at GLC Advisors, to discuss the current state […] The post Software M&A Trends for 2025: Insights from GLC Advisors appeared first on The SaaS CFO.

Trends 59

Trends Software SaaS Management 59

Tom Tunguz

DECEMBER 11, 2022

Average Software Public Value. Coupa’s sale continues a trend of private equity buying venture backed startups , a result of record PE fundraising & depressed multiples. Third, it’s the most substantive acquisition to announce this year after Figma’s announced its sale to Adobe. Revenue, $m. Revenue growth.

Acquisition 243

Acquisition Startup Software Pricing 243

Buffer Resources

JULY 24, 2024

Put simply, social media automation is outsourcing the repetitive, manual, and sometimes boring tasks in your to-do list to software. Adding software into the mix doesn’t just reduce your overhead; it also helps you maintain your social media presence without burning out. And isn’t that the dream?

Social Media 114

Social Media Outsourcing Services Strategy ChatGPT 114

SaaStr

DECEMBER 26, 2022

Amanda Malko is CMO at G2, a software marketplace and review site that reaches over 60 million buyers annually across 2000 software categories. In this session, she shares insights and trends from research conducted this year that can help software buyers and sellers make smarter decisions about software and the market. .

Software Review 245

Software Review Software Azure Cloud 245

SaaStr

OCTOBER 11, 2024

Four portfolio companies join Sameer to talk about three trends of the Cloud AI Era. Trend #1: Foundation Models Many models exist: open source, closed source, frontier models. Trend #3: Change Management Matters In the last paradigm shift, the end user experienced little change when moving from on-premise software to SaaS.

Cloud 167

Cloud AI Artificial Intelligence Healthcare 167