Net dollar retention is arguably 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…
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What percent of SaaS employees should be in R&D, or sales & marketing, or G&A? It’s a question that was recently posed to us, so we looked at the prospectus’ of 41 large and recognizable SaaS companies to find the data. Observations are below. Median headcount. The median headcount of the dataset was 834…
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In 2020, Unity Software went public and one very interesting graphic from their prospectus is below. It shows their journey to becoming a public company (founded 2004) and one thing that stands out is the number of acquisitions they’ve made along the way. Unity has made no less than 4 important acquisitions since founding, which…
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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 Hiring Hourglass” which is primer on hiring B2B sales talent. It’s well worth the read, and below I summarize some of…
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The Bridge Group is a SaaS sales consulting firm that we hold in high regard. They release outstanding sales data which can be found at their site, bridgegroupinc.com. We reviewed a report regarding SDR’s entitled the “Sales Development Metrics and Compensation Research Report.” The report compiled data from 365 SaaS companies about their SDR teams….
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Qualtrics and Momentiv are being acquired by private equity firms. Alongside multiples of publicly traded SaaS companies, public SaaS acquisitions are some of the most relevant you can look at for deriving SaaS revenue multiples. These transactions are all cash, the financials are public and audited, and these are all control transactions so the data…
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The Bridge Group is a SaaS sales consulting firm that we hold in 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 253 executives at SaaS companies with median revenue of $22mm and median ACV…
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The Great Recession lasted from Q4 2007 to Q2 2009 and was severe: unemployment increased from 5% to 10% in October 2009 and American households lost an estimated $16 trillion in net worth while. A quarter of households lost at least 75% of their net worth and half lost at least 25%. We took a…
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I recently read Losing the Signal by Jacquie Mcnish and Sean Silcoff. It’s 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 phone maker operated its own in-house network, a…
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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 a…
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