Shravi Sharma’s Post

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

In today’s fast-paced SaaS industry, companies face numerous challenges, from scaling operations to managing cash flow and staying ahead of market trends. In our latest blog, we explore how management advisory services provide critical support to SaaS businesses by offering expert guidance in overcoming operational inefficiencies, navigating financial obstacles, and making strategic decisions. Learn how tailored advisory solutions can transform your SaaS business and drive long-term growth. Ready to unlock your company's full potential? Read more in our latest post! #SaaS #managementconsulting #businessgrowth #businessstrategy #businessconsulting #BusinessOptimization https://lnkd.in/env_HAGT

Explore how effective, customer-tailored billing strategies impact revenue growth, satisfaction and long-term success in the SaaS industry. https://bit.ly/3RFKMkw #saas #pricing #tech #technology

Check this: Vertical SaaS is ~2X more effective VS rest of SaaS. Based on public SaaS companies data in 2023, Vertical SaaS is ~2X more efficient with higher operational margin. 1️⃣ Vertical SaaS companies are rocking sales with 24% faster payback and nearly half the cost relative to revenue. 2️⃣ Superior operational margins and sales efficiency are hallmarks of Vertical SaaS. 3️⃣ Despite a stark difference in EBITDA margins, Vertical SaaS shows solid financing, likely attracting both equity and debt investors. 4️⃣ Higher COGS in Vertical SaaS, but significantly lower S&A expenses lead to better EBITDA margins. Great example why it is important to focus on the niche. Thank you Kai Uhlig and BenchSights for sharing this. #SaaSInsights #BusinessTrends #TechInnovation #DataDriven 🌟

Across the board, I'm seeing SaaS budgets get scrutinized closely. Companies are assessing where the VALUE is, and how fast can the ROI get delivered. Now is the time to double-down on DELIGHTING your customers, demonstrating tangible value, pricing contracts aggressively while keeping long-term, profitable growth as the target instead of short-term transactional goals. | #technology #growth #strategy

Software-as-a-Service (SaaS) has revolutionized the way we work, skyrocketed efficiencies, and bolstered bottom lines across industries. But have you ever stopped to consider the cumulative cost of SaaS for your business? 🔍 Revealing Statistics: • The average SaaS expenditure per employee in the U.S. stands at a whopping $9,643. • Small and medium-sized enterprises (SMEs) outspend their mid-market counterparts by 11% per employee. So, where does your organization fit into this SaaS spending landscape? It's time to take control of your SaaS portfolio. Initiate a SnapShot Audit today and curb SaaS sprawl to realize significant savings. 💰 #SaaScosts #SnapShotAudit https://hubs.la/Q02fxWnl0

Let's talk about more than just closing the deal; you need to keep the momentum going! 💡 How do you turn satisfied customers into your biggest advocates and fuel growth beyond the initial pain points? Read about it here 👉 https://hubs.ly/Q02pS19k0 #CustomerSuccess #SaaS #LaneFour #BusinessSuccess #Retention #Expansion

Which SaaS Metric have the largest impact on enterprise value to revenue multiples? Does anyone really still care about the Rule of 40?? How does Net Dollar Retention currently impact public SaaS multiples??? 👇📊 highlights how three of the top SaaS metrics have impacted enterprise value to revenue multiples over the past ~ 3 years 👉 Growth was the number one factor impacting EV:NTM Revenue multiples in Jan 2022, June 2022 and again June 2023 - May 2024 👉 Rule of 40 is BACK!! In July 2021 is was less than half as correlated (as measured by R-Squared) on EV:NTM Revenue multiples as Growth and/or NRR 👏 Rule of 40 is currently the number three metric correlated to EV:NTM Revenue multiples (R-Squared = .28) 🤔 Net Revenue Retention is still a very important metric - but in the current public market it less correlated to EV multiples as Growth and Rule of 40 💣 In this week's edition of the SaaS Barometer Newsletter (TL:DR below) I dove deep in the Trials, Tribulations and Best Practices on increasing NRR https://lnkd.in/eTSRRtRB 🧙♂️ Public company regression findings used in above post and on below chart are from the Meritech Capital benchmarks #b2bsaas #metrics #benchmarks

🚀 Excited to share our latest Executive Insight! 🚀 Together with my colleagues Dominic Perrett, Sam Shinner, and Jade Kahn, we have developed the latest L.E.K. Consulting insight on the rising trend of usage-based pricing models in the SaaS sector. As businesses increasingly demand pricing that aligns with product value and outcomes, our insights delve into the strategies necessary to balance usage-based approaches with the financial predictability that larger enterprises prefer. Read the full article here: https://lnkd.in/gDxAeXEQ Stay tuned for more updates as we explore the evolving landscape of SaaS pricing models and share further insights on key areas such as overage models and billing strategies. Feel free to reach out if you have any questions or if you're interested in how our expertise can help your organization! #SaaS #SaaSPricing #PricingStrategy #LEKConsulting

💡 Can we treat one-time purchases as variable revenue? This is a common question that came up during my February cohort of the SaaS Metrics Foundation live course. Understanding the nuances of revenue categorization is crucial for maintaining a clean SaaS P&L and ensuring accurate financial reporting. In today’s SaaS Metrics School session, I dive into why one-time purchases should not be included in your variable revenue bucket. Properly categorizing revenue—whether it's subscription, variable, professional services, or one-time sales—can significantly impact your forecasting, reporting, and business strategy. Remember, variable revenue is recurring in nature. It may fluctuate with usage, consumption, or transactions, but it remains tied to the ongoing customer relationship. On the other hand, one-time purchases are exactly that: non-recurring. 📊 Revenue clarity = Better decisions. Watch the full discussion and let me know if you’ve encountered similar challenges when categorizing your SaaS revenue streams. Watch the full video here: https://lnkd.in/dg_6UTsF #SaaS #RevenueCategorization #SaaSFinance #SaaSMetrics #VariableRevenue #OneTimePurchases #RecurringRevenue #SaaSPandL #SaaSRevenue #SaaSCFO #SubscriptionRevenue #SaaSForecasting #RevenueClarity #SaaSBusinessModel #UsageBasedPricing #FinancialReporting #SaaSFinancials #RevenueStrategy #SaaSInsights #SaaSBestPractices #SaaSFoundation