Class of 2014 SaaS IPO’ers

Comparing Q2 ’15 to Q1’15 We looked at the most recent quarterly financial results for the Class of 9 B2B SaaS companies that IPO’ed in 2014, and compared them to their numbers from one quarter back (for most companies, comparing Q2 ’15 to Q1’ 15) to see...

SaaS Churn % Impacts Your Company Valuation

Even a 1% improvement in renewals can drive significantly higher valuations for a SaaS company over time because of the compounding impact of churn. In a recent article from Todd Gardner and team at SaaS Capital, the impact of how different renewal rates affect both...

Slower growth for SaaS companies in 2015?

Is the market changing its expectations for the SaaS sector in 2015?  We reviewed the financials for 44 public SaaS vendors and compared the average for the sector in Q4 ’14 versus Q1 ’15 results.  While market cap to revenue multiples were almost unchanged, analysts’...

When Customer Lifetime Value is a Moving Target

With any analysis, it is only relevant if you understand how the data was calculated and the context of how it relates to your business.  The data has to be credible for the analysis to be useful.  And when comparing to benchmarks, it becomes doubly important to make...

Ask the Experts – ROI versus ROE

Q: It has been said that ROI is dead and ROE is the new value objective. Do you agree? What do you believe are the top two metrics software companies should use to measure ROE?  Eliminate squishy metrics Read more on...

Can you answer these questions?

Are my performance numbers good, great or average? What’s a reasonable Cost of Customer Acquisition for my business model and growth stage – and what number should we target when we are twice the size? When are fast growth companies hitting cash flow...