One of the best ways to look at SaaS sales efficiency is to compare 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 period’s booked revenue due to…
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How fast do you need to grow prior to exit? We looked at the last 73 SaaS IPO’s going back to MongoDB’s IPO in October 2017. The data is below. On median, these companies grew revenue 43% from the prior year, while the average was 51%. Median overall revenue was $168mm while the average was…
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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 98 SaaS companies disclose net dollar retention (which includes upgrades) at the…
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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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