Fresh Insights

Analyses, Musings & Observations

Learnings from a SaaS IPO – UserTesting

UserTesting is a software company that just went public. Below are some of the highlights and learnings from their prospectus. What they do. “We have pioneered a video-first, enterprise-grade software-as-a-service (SaaS) platform that enables organizations to see and hear the experiences of real people as they engage with products, designs, apps, processes, concepts, or brands.”…
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Learnings from a SaaS IPO – Braze

Braze is a software company that just went public. Below are some of the highlights and learnings from their prospectus. What they do. “Braze is a leading comprehensive customer engagement platform” and “empowers brands to listen to their customers better, understand them more deeply and act on that understanding in a way that is human…
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Learnings from a SaaS IPO – Weave

Weave is a software company that just went public. Below are some of the highlights and learnings from their prospectus. What they do. “We are a leading all-in-one customer communications and engagement software platform for small and medium-sized businesses. Our cloud-based software platform streamlines the day-to-day operations of running a small business. We offer an…
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Learnings from a SaaS IPO – Expensify

Expensify is a software company that just went public. Below are some of the highlights and learnings from their prospectus. What they do. “Expensify is a cloud-based expense management software platform that helps the smallest to the largest businesses simplify the way they manage money. Every day, people from all walks of life in organizations…
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Sales efficiency metrics in SaaS

There are many ways to measure SaaS sales & marketing efficiency. One of the simplest is to look at new revenue booked over a given time period divided by sales & marketing spend during the period (New Rev/S&M). While the sales & marketing expense in a period may not necessarily be attributable to a given…
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SaaS growth at the time of exit

How fast do you need to grow prior to exit? We looked at the last 67 SaaS IPO’s going back to MongoDB’s IPO in October 2017. The data is below. On median, these companies grew revenue 42% from the prior year, while the average was 50%. Median overall revenue was $185mm while the average was…
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Gross dollar retention metrics

A very important but often overshadowed metric in SaaS is gross dollar retention. Gross dollar retention measures how much of your customer revenue has remained with you a year later. Formulaically, it’s beginning ARR — downgrades — churn all divided by beginning ARR. It excludes upgrades.   While 91 SaaS companies disclose net dollar retention (which includes upgrades) at…
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Learnings from the latest SaaS IPO – BackBlaze

BackBlaze is a software company that is about to go public. Below are some of the highlights and learnings from their prospectus. What they do. “We are a leading storage cloud platform, providing businesses and consumers cloud services to store, use, and protect their data in an easy and affordable manner. By substantially reducing the…
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Learnings from the latest Tech IPO – NerdWallet

NerdWallet is a tech company that just went public. Below are some of the highlights and learnings from their prospectus. What they do. “At NerdWallet, we empower consumers — both individual consumers and small and mid-sized businesses (SMBs) — to make smarter financial decisions with confidence. We deliver guidance to consumers through educational content, tools and calculators, product marketplaces…
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Net dollar retention at 91 SaaS IPOs

Net dollar retention is the most important measure in SaaS. Formulaically when measured over a 12 month period, it’s ARR 12 months ago + upgrades — downgrades — churn that occurred over the following 12 months, all divided by that beginning ARR. A healthy SaaS business has net dollar retention over 100% because upgrades in the customer base are…
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