The SaaS CFO’s Post

In a thought-provoking piece by SaaStr's Jason M. Lemkin, the focus is drawn to three crucial SaaS metrics for 2024 that aren't discussed enough but are vital for any SaaS company aiming for growth and efficiency. 🌟 Net New Customer Count: Often overlooked, this metric is essential, especially for companies experiencing slowed growth. Lemkin emphasizes that increasing net new customer count should be a primary KPI, as it indicates the core health of a company. 📈 Growth vs. Efficiency: While efficiency has become important, growth still reigns supreme. Lemkin argues that companies must balance growth with profitability, but growth should be prioritized to ensure long-term success. 🎯 The Bar to IPO: Understanding the evolving requirements for an IPO is crucial. The standards have risen significantly, making it essential for companies to align their strategies early with these higher expectations. For a more detailed understanding of these metrics and their implications, check out the full article. (Link to the full article in the first comment) #SaaS #TechTrends #Startups

📈 Unlocking SaaS Metrics: The Rule of X! Exciting news in the SaaS metrics arena! Bessemer Venture Partners introduces "The Rule of X" for a fresh perspective on company evaluation. A big shoutout to Dirk Sahlmer for breaking it down. 👏 🧐 Why the Change? The conventional Rule of 40, balancing growth and profit, is evolving. Long-term models suggest prioritizing growth over free cash flow (FCF) margins for better outcomes. The Rule of X adapts the equation, acknowledging the compounding impact of growth rate increases on valuation. 📊 Formula: Rule of X = (Growth Rate x Multiplier*) + FCF Margin *For the multiplier, consider a ratio of ~2-3x, tailored to your company's stage. 🔎 Thoughts: Does the Rule of X resonate as a sensible and practical metric for your SaaS journey? #SaaS #Startups #KPI #Metrics #VCInsights #BessemerVenturePartners 🚀

💌 Just published my latest saas.wtf newsletter. This time it's about common patterns in SaaS Company Structures. I was curious myself about what differentiates a SaaS company heading towards IPO from an early stage startup in terms of human resource allocation. When it comes to detailed target org charts for each stage, you should probably not be guided too much by common patterns and opinions of others. There is just so much variance. But if you are a founder and curious about what to expect at each stage, you can at least get a rough overview through this article. Things I've covered: - SaaS org chart evolution through growth stages - Importance of GTM and R&D in different phases - Engineering to sales ratio shift from $0-50M ARR - Scaling marketing vs. sales capacities I hope you enjoy reading it! Let me know if you have any feedback. Link is in the comments. #saas #startups #founder #founders #organization #vc #venturecapital #funding #growth #team

Chase your SaaS dream and redefine what’s possible in the digital world! Dreaming big in the SaaS world means creating solutions that revolutionize industries and redefine user experiences.  The real problem many face is not knowing where to start or how to navigate the complexities of launching a SaaS business. But don't worry, with the right guidance, tools, and strategies you can build and launch in no time and with no hassle! Curious to learn how to overcome these challenges and turn your SaaS dream into reality? Check the link in our comments for exclusive insights and tips!  Let's turn your vision into a thriving digital reality. Join us and make your mark in the SaaS universe!  #SaaSDreams #TechEntrepreneurs #SaaSStartups #InnovateAndElevate #DigitalRevolution #TechInnovation #FollowYourDreams

I never believed in New Year's resolutions. Not for me. I'm choosing daily commitment over yearly promises. Here's why: 🌟 Traditional resolutions often fade in the dark by February. I'm drinking my own Kool-Aid - practicing what we preach to our clients. Sharing valuable content and putting in the work. Daily. 🔍 Transparency is key in thought leadership. So, here's my commitment: I'll be sharing real-time insights, the principles we apply in our work with SaaS startups and scaleups. 📈 It's about doing the work every day, not just talking about it. True change happens with consistent action, not just once-a-year resolutions. Follow me for genuine insights into brand strategy and growth in the SaaS world. Let's make every day count, not just the first few of January! Found this helpful? Share your thoughts below and let's connect with more SaaS leaders and founders. #saas #saasgrowth #saasstartup #saasfounders #brandstrategy #techstartups #techfounders #scaleups

🗞️ New saas.wtf article: Navigating the SaaS Crossroads - Growth vs. Profitability In my latest piece, I dive into a pivotal question for SaaS founders: Should you prioritize growth or profitability? Especially in the context of maximizing exit proceeds. Here’s what you’ll find inside: • The current SaaS landscape and how companies are adapting • Why being stuck in a "holding pattern" is dangerous • How to determine if you should focus on growth or profitability • Strategies for charting a path to profitability • What to consider when pursuing a growth strategy • Current SaaS valuation multiples based on growth and profitability Link in the comments. Enjoy reading! ✌️ #saas #startups #founders #growth #profitability #exit

Investors: You need to become more efficient! Founders: Hold my beer! 🍺 Glad to see that SaaS startups have actually succeeded in becoming more efficient and increasing output per employee - across all revenue ranges. The latest OpenView SaaS Benchmark Report for 2023 from Kyle Poyar and his team again contains many insights into trends in the SaaS market and current benchmarks. Definitely worth taking a closer look, link is in the comments! #saas #startups #founders #kpi #metrics #benchmarking

New 2024 Benchmarks for SaaS Bootstrappers! 📊 SaaS Capital just published their latest benchmarking report, and it's packed with useful insights. They surveyed 1,500+ private SaaS companies, focusing on SaaS KPIs and cost items as % of revenue. The table below shows the results for bootstrapped SaaS companies between $3-20M ARR. Please note that hitting $10M+ ARR requires rock-solid KPIs. If you're sub $3m and don't quite hit the median, don't worry - patterns vary. For smaller companies, the picture certainly looks different. Anything you find surprising? #saas #startups #founders #bootstrap #kpi #growth #benchmarks

Earn the right to think about scaling. Figure out what works first. Unsolicited Advice for the day that would save you at least 12 months of doing the wrong things that look right because of common-place startup advice. Rob regularly churns these out and I am but an amplifier. Results over noise! #saas #earlystagestartups #productmarketfit

Want to know the #1 reason SaaS startups fail❓ It's not a poor product-market fit. It's premature scaling. Scaling too fast before solidifying the product-market fit can lead to failure⚠️ Take the time to perfect your product before expanding too quickly. Rushing never worked well in this case. Instead of rushing to grow, focus on building a solid foundation first. Scaling too soon can strain your resources, lead to financial problems, and cause your team to lose focus. Don't let the excitement of growth blind you. Take it slow and scale at the right pace for long-term success. If you found this relatable, repost ♻️ #saas #saasgrowth #saastips #softwaredevelopment #softwareautomation