Fresh Insights

Analyses, Musings & Observations

SDR sales data for SaaS

The Bridge Group is a SaaS sales consulting firm that we hold in very high regard. They release outstanding sales data which can be found at their site, bridgegroupinc.com. We recently reviewed their “Sales Development Metrics and Compensation research Report” which compiles data from 434 executives at SaaS companies with median revenue of $24mm and…
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SaaS account executive statistics

The Bridge Group is a SaaS sales consulting firm that we hold in very high regard. They release outstanding sales data which can be found at their site, bridgegroupinc.com. We recently reviewed their “SaaS AE Metrics & Compensation Report” which compiles data from 287 executives at SaaS companies with median revenue of $27mm and median…
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Managing SaaS working capital

Managing your working capital is a topic that glazes the eye, but in this environment it’s very important. In all likelihood, your customers are asking to delay payments and your vendors are asking to accelerate them, so if you don’t pay attention to working capital management, you could put yourself in a tough cash position….
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Tech multiples at all time highs

Tech multiples at all time highs Below are revenue multiples for publicly traded consumer tech companies we follow (B2C). Industries and therefore multiples vary widely. Commentary is below. Side note: if you’re looking for data on SaaS multiples, it’s here.     Social media popped to 19.9x. The highs in 2017 were ~14x, but a more…
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SaaS multiples at all time highs

SaaS comps have never been stronger: of the 93 SaaS companies we follow, the average public SaaS business is trading at 22.6x revenue while the median is 14.1x. Interestingly, the gap between the average and median is wider than ever (8.5x), meaning more attractive SaaS companies are being rewarded with big premiums. Also of note,…
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The story, and failure, of Blackberry

I recently read Losing the Signal by Jacquie Mcnish. If you were addicted to your Blackberry, it’s a must ready. It’s also a fantastic read if you want to learn how to avoid mismanaging your market position. Below are some of the passages we learned from.     Blackberry had no security equal. “No other…
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The Snapchat Story

I recently read How to Turn Down a Billion Dollars, The Snapchat Story by Billy Gallagher. The book is fantastic and full of lessons. It’s well worth the read, but below are some of the passages we learned from.     Snapchat really started as a sexting app. “He wouldn’t have to worry about sending…
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The economics of Airbnb

Airbnb just went public in a debut that’s been widely celebrated. We dug into the company’s prospectus and learned some interesting facts about their business and travel trends. Cash flow is highly seasonal. ABNB makes all it’s money in Q3. As you can see, that’s pretty much the only quarter in which the company is…
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The importance of SaaS integrations

When Bill.com, one of the charts in their prospectus shows the major milestones in the company’s history. The chart is below.     The thing that really stood out to us about this graphic is that the company makes it a point to highlight major partnerships and integrations, and indeed you can see the commensurate…
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SaaS customer profitability

Bill.com recently went public. Their software automates complex back-office financial operations for small and midsize businesses (SMBs). One of the charts in their prospectus shows the revenue growth and contribution margin of customers acquired in 2017; it’s a very nice illustration of the first three years of a SaaS customer in a healthy SaaS business….
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