Ringy’s Post

The Six Possible Revenue Categories on Your SaaS P&L✅ Let's start with #1...subscription revenue. Arguably at the top of the SaaS valuation pyramid. 💡 The Primary SaaS Revenue Categories - Subscription Revenue - fixed MRR or ARR contracts - Variable Revenue: usage-based, processing, transaction, and more - Professional Services: one-time revenue from the setup, onboarding, and training of your customers - Managed Services: subscription-based, human-powered services - Hardware Revenue: sales of physical products - Other Revenue: miscellaneous income streams like conferences and accounting adjustments. I'm also parking one-time software sales (the old model) here. ⚠️ Don't comingle your revenue streams! This is disastrous for your FP&A process, calculating your SaaS metrics, and understanding general business performance. And don't mix people-powered revenue and product-powered revenue. Your SaaS valuation relies on product-powered revenue. But a quick shout out to my Professional Services teams out there! You are 🥇🥇🥇! Are these the only 6 major revenue streams? Maybe not. But they cover the majority of SaaS companies. If you'd like the templates that I showed in this video, please comment "templates" below. I'll send 'em your way. #SaaS

If you have no clue how your SaaS metrics compare to the industry standard, stop. Remove: -Guesswork -Irrelevant comparisons -Vanity metrics -Outdated data Instead: ↳ Use reliable benchmarks ↳ Focus on relevant KPIs ↳ Compare against similar companies ↳ Update your data regularly ↳ Simplify your analysis Be informed with your metrics. We've analyzed 6 Product Metrics from 547 SaaS companies to get the latest industry benchmarks. Curious to see how you stack up? If you want our SaaS benchmarks report with results from 547 companies across 6 different industries, like this post & comment 'saas' below.

SaaS CEOs aspire to build an exceptional and reliable revenue engine, yet often compromise by settling for individual high-quality components. Coordination across functions is often limited, data sources can be inconsistent, and plans are fragmented, focusing solely on individual parts or functions. The result? High-quality components, but no cohesive engine driving revenue growth. How do you build an effective predictable engine? Find out more info at https://sta.mx/23q8

Is your revenue model holding back your SaaS business? Discover how the right strategies can drive growth and stability. 📈 In this guide, we explored the essential differences between revenue modeling for subscription-based businesses and traditional non-subscription models and how these critical distinctions can transform your financial planning and enhance predictability. Uncover strategies on managing deferred revenue effectively, understand the implications of different billing schedules, and learn how to adapt to customer needs with flexible pricing tiers. 💡 Whether you're fine-tuning your existing model or planning a major overhaul, understanding these key concepts will position your company for stronger, more predictable growth. 📖 Explore our complete guide to SaaS Revenue Modeling here: https://lnkd.in/gm5PxEe7 #SaaS #B2BSaaS #RevenueModeling #PricingModels #SubscriptionModels #SaaSGrowth

Want to learn tips and tricks to save on operating expenses and optimize cash burn?   Join me and Jared Greenberg from Vertice.one as we dive into spend management and cash burn.   In some SaaS verticals, such as sales software, average underutilization reaches as high as 52%.   Jared will unpack why your SaaS spend holds the key to reducing your cash burn rate and how SaaS optimization could transform your spending for the better, touching on relevant topics such as SaaS inflation, SaaS wastage through maverick spending, and centralizing and rightsizing your SaaS stack. When: Jan 31 Time: 9am PT / 12pm ET Format: live Bonus: all live participants will receive my 30+ SaaS metrics and forecast template bundle! Register at the link in the comments. Replay will be made available. #SaaS

Ever pondered why some SaaS products skyrocket while others don't? It often boils down to pricing strategy. 🎯 Here's a quick rundown- ⚔ 𝐂𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐨𝐫-𝐁𝐚𝐬𝐞𝐝 𝐏𝐫𝐢𝐜𝐢𝐧𝐠: Align with your competitors’ pricing. Higher, lower, or match them? Strategic decisions make the difference. 🚨 Beware: you might miss out on maximizing revenue. ---- 🛒 𝐂𝐨𝐬𝐭-𝐁𝐚𝐬𝐞𝐝 𝐏𝐫𝐢𝐜𝐢𝐧𝐠: The basic math: Development + Overheads + Margin. 🚩 Simple but overlooks customer value. A potential pitfall! ---- 𝐕𝐚𝐥𝐮𝐞-𝐁𝐚𝐬𝐞𝐝 𝐏𝐫𝐢𝐜𝐢𝐧𝐠: 👑 The gold standard for SaaS. Pricing mirrors the customer’s perceived value. 🤝 Know your customer, price it right! ----- Keen on more? Learn How to price your SaaS product --, in the comments! 👇 Over to You: Which pricing strategy lights up your SaaS journey? How has it influenced your growth? Let’s discuss below! 💬 #SaaSPricing #BusinessGrowth #ProductStrategy

Navigate the complexities of SaaS financial metrics with our expert insights. Discover how incorporating ARR and ACV metrics can redefine your growth strategy. Explore the details on our latest blog! https://lnkd.in/ex7yBTKw #saasmetrics #peaksalesrecruiting

The article explores effective strategies for reducing churn rates in SaaS businesses! It emphasizes the importance of understanding customer needs and behaviors to improve retention. Key points include enhancing user onboarding experiences, leveraging data analytics for predictive insights and prioritizing customer success initiatives. By implementing even just one or two of these strategies and fostering a culture of continuous improvement, SaaS companies can reduce churn and drive sustainable growth! Another great article from Jason M. Lemkin at SaaStr 

Want to learn tips and tricks to save on operating expenses and optimize cash burn? Join me and Jared Greenberg from Vertice.one as we dive into spend management and cash burn. In some SaaS verticals, such as sales software, average underutilization reaches as high as 52%. Jared will unpack why your SaaS spend holds the key to reducing your cash burn rate and how SaaS optimization could transform your spending for the better, touching on relevant topics such as SaaS inflation, SaaS wastage through maverick spending, and centralizing and rightsizing your SaaS stack. When: Jan 31 Time: 9am PT / 12pm ET Format: live Bonus: all live participants will receive my 30+ SaaS metrics and forecast template bundle! Register at the link below. Replay will be made available. https://lnkd.in/gNnPzPQX See you live! #SaaS

To quote David Cummings—“Why a $10M ARR company can be more valuable than one a $100M revenue company” 🔓 His answer? Gross Margin. Gross Margin puts an upper limit on your company’s profitability. Meaning, the higher your gross margin, the more profitable your business model. And SaaS business models typically see high gross margins (>70% on avg), which makes them attractive investments. 💸 We know (Revenue - COGS)/Revenue = Gross Margin—but the hard part here is: What goes into COGS for a SaaS business? 📌Should Customer Success be included in COGS? 📌Should a particular software/tool be included in COGS? 📌Should tool costs be amortized? 📌Should implementation costs for these tools be included in COGS? … 🌌Get answers to these questions in our free COGS formula template! Check the download link in comments 💬 #saas #finance #fpna