Research shows the most successful companies use metrics and benchmarking as a key information and management tool. Benchmarks are used to help set internal targets, and gain agreement on the appropriate targets by providing neutral data to set performance expectations among the executive team. It is very easy to point fingers when you are only looking at internal data – using 3rdparty neutral data tends to focus everyone on problem solving rather than blaming or defensiveness.
Totango's 4th Annual SaaS Metrics Survey Report. This year's key take-away underscores the importance of customer success in the SaaS business model – and why it is imperative for SaaS companies to be relentlessly focused on boosting retention and increasing customer upsells in order to increase revenue.
Totango's 3rd Annual SaaS Metrics Survey Report: The big take-away from this year’s survey underscores the importance of customer success in the SaaS business model – and why it is imperative for SaaS companies to be relentlessly focused on delivering recurring value to customers.
1) Annual contracts are most common, especially for mid-market companies with $15,000-$50,000 ACVs.
2) Two-thirds of companies retain 80% or more of logos from year to year, and one-third retain 90% or more.
3) Net dollar retention targets should be between 100-140% with enterprises expanding accounts more than SMBs.
4) Time-based and usage-limited free trials convert leads up to twice as well as other structures and should be explored further.
Finance departments will no doubt change the way they measure their business when shifting from the old world of chasing after each and every dollar to this new world of monetizing relationships. Get the low down on the 3 most important Subscription Metrics for your business.
Our 2020 Survey on Sales Compensation in Israeli SaaS Companies revealed valuable insights about both the matureness of the Israeli industry in the past two years as well as the the effects of COVID-19. We encourage the industry to use this survey as a sanity check tool for CEOs, CROs and CFOs to see where they stand vis-à-vis their peers.
3 Revenue and Compliance "Must-haves" to Go from Series A to IPO with TaxJar'...saastr
Don’t get caught off-guard raising your next round or preparing for an IPO. It’s more than just winning customers, it’s about staying ahead of fraud, risk, and compliance. Join us for a conversation about the most overlooked finance and compliance items when scaling your SaaS company.
This will truly be an intimate forum to discuss market trends, metrics and benchmarks that resulted from the CFO Metrics Survey launched earlier this year.
The Current State of SaaS Companies, Subscriptions and Retention in 2021 with...saastr
Leveraging data garnered from twenty three thousand recurring revenue businesses, ProfitWell’s CEO Patrick Campbell shares insights on where the SaaS world sits going into 2021, including benchmarks on how growth and retention faired throughout COVID. He’ll then walk through a tactical playbook on the retention levers the fastest growing SaaS companies are using to accelerate in a market that continues to get denser and more competitive. You’ll leave with specific takeaways to implement or hand off internally - all backed by data on what definitively works.
Totango's 4th Annual SaaS Metrics Survey Report. This year's key take-away underscores the importance of customer success in the SaaS business model – and why it is imperative for SaaS companies to be relentlessly focused on boosting retention and increasing customer upsells in order to increase revenue.
Totango's 3rd Annual SaaS Metrics Survey Report: The big take-away from this year’s survey underscores the importance of customer success in the SaaS business model – and why it is imperative for SaaS companies to be relentlessly focused on delivering recurring value to customers.
1) Annual contracts are most common, especially for mid-market companies with $15,000-$50,000 ACVs.
2) Two-thirds of companies retain 80% or more of logos from year to year, and one-third retain 90% or more.
3) Net dollar retention targets should be between 100-140% with enterprises expanding accounts more than SMBs.
4) Time-based and usage-limited free trials convert leads up to twice as well as other structures and should be explored further.
Finance departments will no doubt change the way they measure their business when shifting from the old world of chasing after each and every dollar to this new world of monetizing relationships. Get the low down on the 3 most important Subscription Metrics for your business.
Our 2020 Survey on Sales Compensation in Israeli SaaS Companies revealed valuable insights about both the matureness of the Israeli industry in the past two years as well as the the effects of COVID-19. We encourage the industry to use this survey as a sanity check tool for CEOs, CROs and CFOs to see where they stand vis-à-vis their peers.
3 Revenue and Compliance "Must-haves" to Go from Series A to IPO with TaxJar'...saastr
Don’t get caught off-guard raising your next round or preparing for an IPO. It’s more than just winning customers, it’s about staying ahead of fraud, risk, and compliance. Join us for a conversation about the most overlooked finance and compliance items when scaling your SaaS company.
This will truly be an intimate forum to discuss market trends, metrics and benchmarks that resulted from the CFO Metrics Survey launched earlier this year.
The Current State of SaaS Companies, Subscriptions and Retention in 2021 with...saastr
Leveraging data garnered from twenty three thousand recurring revenue businesses, ProfitWell’s CEO Patrick Campbell shares insights on where the SaaS world sits going into 2021, including benchmarks on how growth and retention faired throughout COVID. He’ll then walk through a tactical playbook on the retention levers the fastest growing SaaS companies are using to accelerate in a market that continues to get denser and more competitive. You’ll leave with specific takeaways to implement or hand off internally - all backed by data on what definitively works.
"Driving SaaS Success Using Key Metrics" at SaaStr Annual 2016saastr
David Skok, popular blogger and top SaaS investor at Matrix Partners, shares the key metrics that SaaS founders must focus on to remain competitive and build a sustainable business at SaaStr Annual 2016 held in San Francisco Feb 9-11th. www.saastrannual.com
OpenView surveyed over 500 companies, from pre-revenue to $150M+ ARR publicly traded SaaS companies, about what does and doesn't work when it comes to scaling a business.
Business Model - system strategy flow chart with feedback loops for lean startupKelly Schwedland
Startups are inherently difficult. Building a lean startup often involves having an idea of the business model and system strategy that can help while building the customer and process flow and allow for feedback loops to marketing and management that allows the company to flourish.
But Scaling a business requires that it is replicable. This requires systems that are not dependent on the founding team and can quickly and easily be transferred to new employees. Mapping out and documenting the systems is a quick and easy way to find holes and fill them. For More info see Michael Gerber's "The E-Myth Revisited"
This document discusses key metrics and economics for a SaaS business model. It provides details on sales compensation, bookings targets, churn rates, margins. It examines how revenue is generated from a single salesperson over time. Graphics show how monthly recurring revenue grows as new salespeople are hired each month. Lowering churn rates can significantly impact long-term profits. Collecting payment upfront eliminates cash flow troughs. Sales complexity impacts customer acquisition costs, requiring higher prices and more approval steps. Regular product improvements provide feedback on customer happiness.
Shopify is an e-commerce platform with over 300,000 active merchants and $3.4 billion in GMV in Q2 2016. The document discusses Shopify's growth, including strong and consistent increases in revenue, monthly recurring revenue, and GMV. It highlights Shopify's business model of providing a single integrated platform for merchants to manage online stores, payments, shipping, and other operations. The summary highlights Shopify's large opportunity in the global SMB e-commerce market and its vision to make commerce better for everyone.
Shopify had over 275,000 active merchants on its platform in Q1 2016, generating over $2.7 billion in gross merchandise volume (GMV). The document discusses Shopify's financial highlights, including strong and consistent revenue growth, a powerful recurring subscription-based business model, and operating leverage. It also outlines Shopify's growth vectors such as acquiring more merchants and partners, developing more solutions, and expanding into more international markets and sales channels.
Most critical SaaS metrics everybody should trackStrive Analytics
Don't get lost in space! Understanding SaaS metrics is no rocket science.
We recently got a lot of user request to explain and detail critical SaaS metrics.
Not only lifeless definitions but also how they're calculated, why they are useful and how they are connected to each other.
This guide gives you a simple to understand introduction into SaaS metrics. So, we grouped them into three parts: acquisition, retention and revenue.
And these are some of the metrics, we're going to introduce:
Customer Acquisition Cost (CAC), User Churn, Retention Rate, Revenue Churn, Customer Liftime Value (LTV) and Monthly Recurring Revenue (MRR).
Enjoy!
The document discusses sales compensation strategies for SaaS companies. It covers aligning comp plans with business goals and stage, metrics like ARR and MRR, handling both SaaS and on-premise sales, lessons from Hubspot's experience evolving their comp plan through different growth stages. Key topics include balancing short-term quotas with long-term customer value, adjusting plans based on product adoption lifecycle, and using metrics and clawbacks appropriately.
The document discusses the importance of three key metrics for companies in the subscription economy: recurring profit margin, retention rate, and growth efficiency index. It argues that traditional financial systems are not designed for subscription-based businesses and outlines the business model of the subscription economy. Benchmark data is provided for high-growth SaaS companies and an ideal metrics model is presented.
In his welcoming address at SaaSFest 2017, Patrick Campbell outlines the current state of the subscription economy and emplores everyone to focus on the fundamentals of developing quantified buyer personas and talking to your customers.
The document provides templates for 4 sales reports that a CEO should receive from their VP of Sales on a weekly basis:
1) Total Sales vs Forecast vs Goal
2) Quota Attainment
3) Sales Formula
4) Lead Yield by Source
It includes examples and descriptions of each report, as well as editable templates to customize the reports.
Micro Conf 2021 - The State of Independent SaaS Report Firat Demirel
The State of Independent SaaS Report was generated based on the data of hundreds of non-venture track, revenue generating SaaS companies that we analyzed and turned into an epic report filled with benchmarks, growth rates, demographics, validation approaches, and more
At Totango, we’ve developed a framework – the Customer Retention Cost (CRC) and the CRC Ratio – to assess and benchmark customer retention efforts in the industry. This is a critical missing component in the portfolio of metrics that SaaS executives, Boards, and investors should track and measure.
Funding options For Growing Technology CompainesPatrick Doherty
BJ Lackland is the CEO of Lighter Capital, which provides revenue-based financing for technology companies. Lighter Capital has financed over 100 companies, mostly SaaS, with funding amounts between $50k-$1M. Revenue-based financing works like a royalty agreement where companies make monthly payments based on a percentage of their revenue until a fixed amount is paid. This fits well with SaaS companies. Lighter Capital can help companies access the AWS Activate program which provides cloud credits, training and support.
The Finance Perspective: The Business Model for the Subscription EconomyZuora, Inc.
Learn best practices for subscription financial management, with a focus on the ‘Three Metrics That Matter’, the new income statement for the Subscription Economy and how to apply it to your business. Learn best practices for subscription financial management, with a focus on the ‘Three Metrics That Matter’, the new income statement for the Subscription Economy and how to apply it to your business.
Shopify is an e-commerce platform with over 175,000 active merchants and $10 billion in cumulative GMV. The document discusses Shopify's financial highlights including strong and consistent revenue, MRR, and GMV growth driven by growing merchant base and introduction of new products. It also notes Shopify's powerful recurring revenue business model and operating leverage with expanding gross margins and decreasing operating expenses as a percentage of revenue.
Shopify is an ecommerce platform that serves over 300,000 active merchants with $3.4 billion in GMV in Q2 2016. The document discusses Shopify's growth including strong and consistent increases in revenue, monthly recurring revenue, and GMV driven by acquiring more merchants and partnerships. It highlights Shopify's powerful recurring revenue business model and operating leverage. The presentation provides an overview of Shopify's market opportunity and growth strategies going forward including expanding to more merchants, partners, solutions, channels and international markets.
For those who don't have a Ph.D in Subscription Metrics, you need to start somewhere. That place is here! Take a high-level look at the basic metrics for managing a subscription business:
The importance of ARR, MRR, ACV
How to calculate churn
Up-sell vs. cross-sell, and how to measure each
Do I really care about customer lifetime value?
Evergreen vs. Termed Subscriptions
- The sales pipeline conversion percentage dropped from 35% to 25% at a tech SaaS startup.
- By analyzing variables like technology primary, opportunity size, sales medium, and city, insights were generated that legacy modernization and online leads had lower conversion rates while ERP implementation had higher numbers of no previous business.
- Two key recommendations are for management to prioritize new technology/innovation and invest in hiring technical talent or consultants to add new features customers need from competitors. This would help increase the conversion rate by satisfying customer needs.
Shopify is an e-commerce platform that powers over 200,000 active merchants with $1.9 billion in gross merchandise volume in Q3 2015. The document discusses Shopify's multi-channel commerce platform that provides a single integrated back office to power online stores, physical retail locations, and sales across all channels. It highlights Shopify's growing merchant base and financial results including strong and consistent growth in revenue, monthly recurring revenue, and gross merchandise volume driven by more merchants and solutions.
The document discusses the growth of software as a service (SaaS) companies over the past decade. It notes that SaaS companies have generated $40 billion in market value, with leaders like Salesforce.com reaching $17.5 billion. The document cautions that SaaS should be viewed as an architectural model rather than just a market, and that long term growth is achieved through compounding gains rather than aiming to be a "rocket ship" company.
Selecting a recurring billing platform is a risky decision, selecting the wrong one can cause havoc on your business, your customers, and your coworkers.
In this webinar Fusebill CEO, Steve Adams will share seven sins of subscription billing so you know what to watch out for when conducting your research and making your selection.
"Driving SaaS Success Using Key Metrics" at SaaStr Annual 2016saastr
David Skok, popular blogger and top SaaS investor at Matrix Partners, shares the key metrics that SaaS founders must focus on to remain competitive and build a sustainable business at SaaStr Annual 2016 held in San Francisco Feb 9-11th. www.saastrannual.com
OpenView surveyed over 500 companies, from pre-revenue to $150M+ ARR publicly traded SaaS companies, about what does and doesn't work when it comes to scaling a business.
Business Model - system strategy flow chart with feedback loops for lean startupKelly Schwedland
Startups are inherently difficult. Building a lean startup often involves having an idea of the business model and system strategy that can help while building the customer and process flow and allow for feedback loops to marketing and management that allows the company to flourish.
But Scaling a business requires that it is replicable. This requires systems that are not dependent on the founding team and can quickly and easily be transferred to new employees. Mapping out and documenting the systems is a quick and easy way to find holes and fill them. For More info see Michael Gerber's "The E-Myth Revisited"
This document discusses key metrics and economics for a SaaS business model. It provides details on sales compensation, bookings targets, churn rates, margins. It examines how revenue is generated from a single salesperson over time. Graphics show how monthly recurring revenue grows as new salespeople are hired each month. Lowering churn rates can significantly impact long-term profits. Collecting payment upfront eliminates cash flow troughs. Sales complexity impacts customer acquisition costs, requiring higher prices and more approval steps. Regular product improvements provide feedback on customer happiness.
Shopify is an e-commerce platform with over 300,000 active merchants and $3.4 billion in GMV in Q2 2016. The document discusses Shopify's growth, including strong and consistent increases in revenue, monthly recurring revenue, and GMV. It highlights Shopify's business model of providing a single integrated platform for merchants to manage online stores, payments, shipping, and other operations. The summary highlights Shopify's large opportunity in the global SMB e-commerce market and its vision to make commerce better for everyone.
Shopify had over 275,000 active merchants on its platform in Q1 2016, generating over $2.7 billion in gross merchandise volume (GMV). The document discusses Shopify's financial highlights, including strong and consistent revenue growth, a powerful recurring subscription-based business model, and operating leverage. It also outlines Shopify's growth vectors such as acquiring more merchants and partners, developing more solutions, and expanding into more international markets and sales channels.
Most critical SaaS metrics everybody should trackStrive Analytics
Don't get lost in space! Understanding SaaS metrics is no rocket science.
We recently got a lot of user request to explain and detail critical SaaS metrics.
Not only lifeless definitions but also how they're calculated, why they are useful and how they are connected to each other.
This guide gives you a simple to understand introduction into SaaS metrics. So, we grouped them into three parts: acquisition, retention and revenue.
And these are some of the metrics, we're going to introduce:
Customer Acquisition Cost (CAC), User Churn, Retention Rate, Revenue Churn, Customer Liftime Value (LTV) and Monthly Recurring Revenue (MRR).
Enjoy!
The document discusses sales compensation strategies for SaaS companies. It covers aligning comp plans with business goals and stage, metrics like ARR and MRR, handling both SaaS and on-premise sales, lessons from Hubspot's experience evolving their comp plan through different growth stages. Key topics include balancing short-term quotas with long-term customer value, adjusting plans based on product adoption lifecycle, and using metrics and clawbacks appropriately.
The document discusses the importance of three key metrics for companies in the subscription economy: recurring profit margin, retention rate, and growth efficiency index. It argues that traditional financial systems are not designed for subscription-based businesses and outlines the business model of the subscription economy. Benchmark data is provided for high-growth SaaS companies and an ideal metrics model is presented.
In his welcoming address at SaaSFest 2017, Patrick Campbell outlines the current state of the subscription economy and emplores everyone to focus on the fundamentals of developing quantified buyer personas and talking to your customers.
The document provides templates for 4 sales reports that a CEO should receive from their VP of Sales on a weekly basis:
1) Total Sales vs Forecast vs Goal
2) Quota Attainment
3) Sales Formula
4) Lead Yield by Source
It includes examples and descriptions of each report, as well as editable templates to customize the reports.
Micro Conf 2021 - The State of Independent SaaS Report Firat Demirel
The State of Independent SaaS Report was generated based on the data of hundreds of non-venture track, revenue generating SaaS companies that we analyzed and turned into an epic report filled with benchmarks, growth rates, demographics, validation approaches, and more
At Totango, we’ve developed a framework – the Customer Retention Cost (CRC) and the CRC Ratio – to assess and benchmark customer retention efforts in the industry. This is a critical missing component in the portfolio of metrics that SaaS executives, Boards, and investors should track and measure.
Funding options For Growing Technology CompainesPatrick Doherty
BJ Lackland is the CEO of Lighter Capital, which provides revenue-based financing for technology companies. Lighter Capital has financed over 100 companies, mostly SaaS, with funding amounts between $50k-$1M. Revenue-based financing works like a royalty agreement where companies make monthly payments based on a percentage of their revenue until a fixed amount is paid. This fits well with SaaS companies. Lighter Capital can help companies access the AWS Activate program which provides cloud credits, training and support.
The Finance Perspective: The Business Model for the Subscription EconomyZuora, Inc.
Learn best practices for subscription financial management, with a focus on the ‘Three Metrics That Matter’, the new income statement for the Subscription Economy and how to apply it to your business. Learn best practices for subscription financial management, with a focus on the ‘Three Metrics That Matter’, the new income statement for the Subscription Economy and how to apply it to your business.
Shopify is an e-commerce platform with over 175,000 active merchants and $10 billion in cumulative GMV. The document discusses Shopify's financial highlights including strong and consistent revenue, MRR, and GMV growth driven by growing merchant base and introduction of new products. It also notes Shopify's powerful recurring revenue business model and operating leverage with expanding gross margins and decreasing operating expenses as a percentage of revenue.
Shopify is an ecommerce platform that serves over 300,000 active merchants with $3.4 billion in GMV in Q2 2016. The document discusses Shopify's growth including strong and consistent increases in revenue, monthly recurring revenue, and GMV driven by acquiring more merchants and partnerships. It highlights Shopify's powerful recurring revenue business model and operating leverage. The presentation provides an overview of Shopify's market opportunity and growth strategies going forward including expanding to more merchants, partners, solutions, channels and international markets.
For those who don't have a Ph.D in Subscription Metrics, you need to start somewhere. That place is here! Take a high-level look at the basic metrics for managing a subscription business:
The importance of ARR, MRR, ACV
How to calculate churn
Up-sell vs. cross-sell, and how to measure each
Do I really care about customer lifetime value?
Evergreen vs. Termed Subscriptions
- The sales pipeline conversion percentage dropped from 35% to 25% at a tech SaaS startup.
- By analyzing variables like technology primary, opportunity size, sales medium, and city, insights were generated that legacy modernization and online leads had lower conversion rates while ERP implementation had higher numbers of no previous business.
- Two key recommendations are for management to prioritize new technology/innovation and invest in hiring technical talent or consultants to add new features customers need from competitors. This would help increase the conversion rate by satisfying customer needs.
Shopify is an e-commerce platform that powers over 200,000 active merchants with $1.9 billion in gross merchandise volume in Q3 2015. The document discusses Shopify's multi-channel commerce platform that provides a single integrated back office to power online stores, physical retail locations, and sales across all channels. It highlights Shopify's growing merchant base and financial results including strong and consistent growth in revenue, monthly recurring revenue, and gross merchandise volume driven by more merchants and solutions.
The document discusses the growth of software as a service (SaaS) companies over the past decade. It notes that SaaS companies have generated $40 billion in market value, with leaders like Salesforce.com reaching $17.5 billion. The document cautions that SaaS should be viewed as an architectural model rather than just a market, and that long term growth is achieved through compounding gains rather than aiming to be a "rocket ship" company.
Selecting a recurring billing platform is a risky decision, selecting the wrong one can cause havoc on your business, your customers, and your coworkers.
In this webinar Fusebill CEO, Steve Adams will share seven sins of subscription billing so you know what to watch out for when conducting your research and making your selection.
Ijpie- From buying one PC to owning multiple super computers.rahul karn
IJPIE is a cloud computing platform that offers automated management of virtual computing resources to provide flexible, cost-effective IT infrastructure and solutions. It allows users to create fully configured virtual machine environments for tasks like product testing, training, and proof-of-concepts. IJPIE aims to replace on-premise IT infrastructure with cloud resources from vendors like Microsoft Azure. It promises benefits like reduced costs, improved performance, minimized IT staffing needs, and the ability to reuse software licenses across multiple machines. IJPIE is developed and managed by a team with extensive experience in cloud computing, software development, and delivering IT solutions and services to enterprises.
Od4559 online survey software industry reportAndrew Haeg
The document summarizes an industry report on the online survey software industry in the US. It grew rapidly over the past five years at an average annual rate of 10.7% as corporate marketing budgets increased and online surveys became more affordable and ubiquitous. The industry was briefly slowed during the recession but has since rebounded strongly. It is highly profitable with few barriers to entry, leading to increasing competition. The industry is expected to continue growing as online media usage expands and enables more targeted surveys.
Webinar | Zero to Account Plan in 6 Contact HoursAltify
The likelihood of winning business in an existing customer is 60-70% compared to 5-20% for new customers (source: Marketing Metrics). Yet when it comes to Account Planning, if we’re being honest, we often treat it as a chore to be avoided. Or, addressed once a year and then shelved until the following year.
Billy Martin, Account Planning Evangelist and Senior Manager, Marketing Cloud at Salesforce, has seen serious return from a rigorous account planning structure. He’s willing to share key learnings including how to make Account Planning a natural part of a sales organization’s rhythm on a consistent path to maximizing revenue in Key Accounts. And how to go from Zero to Account Plan in six contact hours.
Joining Billy is The TAS Group’s VP of Strategic Alliances, Mark Handron. Mark has been working hand-in-glove with Salesforce to roll out their Account Planning initiative worldwide.
Watch this and gain insight to key takeaways to maximize revenue in your key accounts.
This document provides questions to start conversations with others in an organization. It includes questions about what is important, challenging, or frustrating in one's work; how the organization is addressing challenges; what constraints exist and could be removed; and how the organization may evolve. It also has questions to identify additional useful contacts, understand projects or problems, and gain strategic insights.
This document discusses benchmarking at Euro-IX, an association of internet exchange points (IXPs). It describes how Euro-IX operates a voluntary Benchmarking Club (BMC) to allow IXPs to anonymously share and compare operational data to identify best practices and areas for improvement. The BMC survey is conducted annually, with participation increasing over time. Categories of data shared include prices, traffic metrics, financial performance, and staffing. Benchmarking is intended to help IXPs look outward and learn from one another's experiences.
This document discusses developing an effective proposal strategy. It emphasizes understanding the customer's needs and perceptions of both your company and competitors. It provides guidance on conducting a competitive analysis to identify positive and negative discriminators. The proposal strategy should state what you will do and how, emphasizing strengths while addressing weaknesses. Theme statements should then link customer benefits to differentiating features of your solution and answer why the customer should choose you.
The document discusses the need for salespeople to master value selling in order to address today's top sales challenge - making a clear connection between products and customer business issues. It notes that while salespeople are often more knowledgeable about products than business issues, top performers are 3x more effective by mastering value selling. Value selling involves focusing on critical customer problems, targeting the right stakeholders, and bridging value gaps to help customers through their buying journey. The document promotes the Value Selling System as a way to systematically create and capture value with customers through focus, process, playbooks and plans.
Get ready for 2014 planning by benchmarking the financial performance of your supply chain. Using a database of over 50 metrics with 20 years of data, the Supply Chain Insights team can help you better understand your supply chain potential. This analysis enables visualization of company performance on managing the trade-offs of growth, profitability, inventory/cash cycles and complexity.
We find that each company has a unique pattern in how they managed trade-offs. The analysis helps you benchmark against your peer group and make a conscious choice. Through a deeper understanding of industry averages and outliers, this type of study helps you to better understand your supply chain potential. While many companies have used this service to understand public performance, many leaders have taken it one step further to benchmark divisions or product groups within their companies.
The recent economic growth coupled with uncertainties has resulted in the stakeholder's curiosity and interest in Valuations of their respective investee Companies and also the estimated Valuations of the Targets available for Sale which has led to a greater demand for Business Valuation services.
Since as of now there are no Regulated standards for Valuation in India, numerous conceptual controversies still remain, even among the most prominent practitioners. With a view to give an overview of the Valuation concepts in general and the practical issues in particular, www.corporatevaluations.in, an online venture of Corporate Professionals Capital, SEBI Registered Merchant Banker has prepared this report on "Insight of Valuation". Hope you find it useful. Suggestions for improvement are invited @ info@corporatevaluations.in
Mark Roberge's Forecast 2015 Keynote: The Sales Acceleration FormulaBase CRM
Last week, the sales category was taken by storm when some of the top thought-leaders in the industry came to Forecast 2015. For those of you who couldn't attend, or want a second look at the amazing content presented, we're posting all of our speaker's keynotes for you. Here's Mark Roberge's presentation on "The Sales Acceleration Formula."
This document is a report on Facebook advertising benchmarks from January to March 2013. It provides data on key performance indicators (KPIs) like click-through rate, cost per click, and cost per impression for different Facebook ad types, industries, and countries. The report finds that sponsored stories generally have higher app install/page like rates than non-sponsored ads, though at a higher cost. Industries like telecom and publishing see above average click-through rates. Countries with top engagement include Venezuela, the United States, and the United Kingdom.
SURE! Subscription Billing & Relationship Management for IaaS providers SURE!
Learn how SURE! end to end Subscription Billing and Relationship Management can become a right solution for IaaS providers to streamline their business models.
SURE! is a Magnaquest product. SURE! is an end-to-end Subscription Lifecycle Management Platform from Magnaquest. SURE! supports different domains like Cloud (IaaS, SaaS, Unified Communication) Broadband (FTTX, WiMAX, Wi-Fi, Cable, ADSL) , Dual Play, Triple Play Telecom, MVNO & M2M, Pay TV (Cable, DTH, DTT, Broadcaster, IPTV, OTT) and Home Utilities. SURE! has been redefining and catalyzing ROI of our clients, spread globally, in verticals like Media & Entertainment, Broadband and Cloud businesses, with a product suite spanning Billing and Revenue Management, CRM, Session Control, OSS and Campaign management.
Capital Structure & Financial Leverage Analysis of Software Industryanujsurana
The document analyzes the capital structure and financial leverage of software companies compared to other industries. It finds that software companies typically do not use debt financing and instead rely on internal cash flows and cash balances. This is because the business risks facing software companies are high due to volatility in intangible assets. Maintaining high liquidity allows software firms to adapt quickly and reduces their overall risk without taking on additional financial risk from debt.
This document outlines the key steps in pursuing a new client opportunity or existing account. It involves:
1) Conducting initial desk research on the client/market and identifying interested stakeholders.
2) Analyzing the opportunity and ensuring strategic alignment through cross-discipline workshops.
3) Continually gathering intelligence, developing solutions, building presentations and refining the client relationship and win strategy.
4) Preparing for final presentations and site visits, then following up with post-bid analysis to assess lessons learned.
Third Quarter Results FY 2010-11:Investor Release Semalytix
HCL Technologies reported its third quarter results for fiscal year 2010-2011. Revenue was up 5.8% quarter-over-quarter and 33.5% year-over-year in US dollars. Net income increased 16.5% quarter-over-quarter and 35.0% year-over-year. Revenue was also up in Indian rupees, with net income growth of 17.1% quarter-over-quarter and 33.0% year-over-year. The company added over 7,500 employees during the quarter and announced a dividend of Rs. 2 per share.
HCL Technologies reported its third quarter results for fiscal year 2010-2011. Revenue was up 5.8% quarter-over-quarter and 33.5% year-over-year in US dollars. Net income increased 16.5% quarter-over-quarter and 35% year-over-year. Revenue in Indian rupees was up 6.4% quarter-over-quarter and 31.5% year-over-year, while net income increased 17.1% quarter-over-quarter and 33% year-over-year. The company added over 7,500 employees during the quarter.
omnicom group Q4 2006 Investor Presentationfinance22
The document provides financial information for Omnicom Group for the fourth quarter and full year of 2006. It shows that revenue grew 9.4% in the fourth quarter and 8.5% for the full year compared to 2005. Net income increased 9.7% in the fourth quarter and 9.3% for the full year. Revenue growth was driven by organic growth of 6.6% in the fourth quarter and 7.6% for the full year, as well as a positive foreign exchange impact. By discipline, CRM experienced the strongest growth at 15% in the fourth quarter and 13% for the full year.
This document summarizes CSX Corporation's presentation at the Citigroup Transportation Conference in November 2007. The presentation outlines CSX's positive fourth quarter revenue outlook, strong financial results, and strategies to drive earnings growth. CSX aims to achieve 10-12% annual operating income growth and a mid-low 70s operating ratio by 2010 through productivity improvements, value pricing, and total service integration.
1) CSX reported positive fourth quarter revenue outlooks for several industries including agricultural products, chemicals, coal, and metals, while noting automotive and food & consumer as neutral or unfavorable.
2) CSX has delivered strong financial results in recent years and is targeting 10-12% annual operating income growth and 15-17% annual earnings per share growth through 2010.
3) Key strategies like restructuring, productivity initiatives, and value pricing have driven margins higher, with the operating ratio goal of the mid-low 70s by 2010.
Another installment of the DevelopmentCorporate financial literacy series. This presentation focuses on discovering repeatable and scalable patterns in your organization's sales force.
- Arezzo&Co's gross revenue increased 27.9% in 4Q12 and 28.5% in 2012, with strong performance across all brands and channels.
- Owned store sales grew 49.9% in 4Q12 and 68.1% in 2012, while franchises also performed well with 12.2% same-store sales growth in 2012.
- The Schutz brand in particular saw 87% revenue growth in 4Q12 and 65.2% in 2012, benefiting from initiatives to strengthen franchises and owned stores.
- In 2012, Arezzo&Co expanded its store network by 58 points of sale.
Google - Investment Analysis & Mgmt 120213 10pm v4 finalRichard Chan, MBA
The document provides an analysis of Google as of November 11, 2013. It includes a company profile which describes Google's business segments and venture capital activities. A business analysis covers Google's dominance in search and online video, as well as investments in R&D. A valuation section estimates Google's fair value per share at $992.77 based on a discounted cash flow model and industry WACC of 9.6%. Risks to the valuation are also considered.
1) Consolidated net revenue grew 15.5% in 2011 over 2010, led by strong increases in the Identification Systems and Telecommunications divisions.
2) Adjusted net income increased 28.6% in 2011 to R$128.7 million, marking the 14th consecutive year of growth.
3) The company proposed paying 80% of adjusted net income for 2011 in dividends, totaling R$65 million to shareholders.
The document provides a summary of CCR's 4Q09 results and upcoming events. Key highlights include:
- Traffic grew 19.5% in 4Q09 and 17.1% in 2009, excluding new assets. EBITDA increased 10% in 4Q09.
- Management proposes an additional dividend of R$101.5 million for 2009, totaling an 89.7% payout ratio.
- A capital increase of R$1.276 billion through the issue of new shares was completed.
- Capex is projected to be R$483 million for AutoBAn and R$308.2 million for NovaDutra in 2010.
Informa reported strong financial results for 2011, with organic revenue growth of 3.9% and adjusted operating profit growth of 7.9%. Subscription revenues now make up 36% of total revenues, up from 30% in 2008. 74% of publishing revenues are fully digitized. The number of large events increased by 22% and emerging markets now represent 14% of total revenues, up from 12% in 2010. The integration of acquired companies like Datamonitor is progressing well. Informa expects continued growth in 2012 above market averages, supported by subscriptions, large events, and geographic expansion.
The document provides a comparative overview of 7 software companies, including financial metrics and observations. It analyzes the companies' income statements, R&D spending, valuations based on price/sales ratios and market value add, and other metrics. Key observations include the fast growth and high valuations of cloud-focused "stars" like Salesforce, Workday and NetSuite compared to more traditional software giants like Microsoft, Oracle and SAP.
The document discusses Aegean Marine Petroleum Network Inc.'s Q4 2012 financial results and outlook. It highlights that sales volumes increased 6.2% in Q4 2012 compared to Q4 2011. While gross profit declined slightly year-over-year, EBITDA adjusted for asset sales increased 13.5% for the full year. The company has built-in capacity to further scale its business through a modern, largely double-hull fleet and growing marine lubricant business. Gross profit is driven by both sales volumes and gross spread per metric ton.
Nexon reported its Q3 2012 results with revenue of ¥24.2 billion and operating income of ¥10 billion. While revenue was flat year-over-year, operating income declined 8%. Nexon's acquisition of gloops establishes it as the #1 independent mobile game developer by revenue and diversifies its business. For Q4 2012, Nexon revised its outlook downward to account for competitive pressures, the gloops acquisition, and plans to focus on engagement over monetization for some regions and titles. Nexon enters 2013 with a strong pipeline including new titles and updates.
United Stationers Inc. reported third quarter 2012 earnings. Key highlights include:
- Sales were flat compared to Q3 2011 at $1.3 billion. Earnings per share were $0.91 compared to $0.81 last year.
- Gross margin rate increased to 15.8% from 15.3% last year. Operating expenses rose slightly to 10.9% of sales.
- Net income was $36.8 million, up from $35.8 million in Q3 2011. The company also repurchased shares and paid dividends during the quarter.
Profarma's market share reached a record 12.0% in 3Q07, with gross revenues growing 31.9% to R$698.2 million compared to 3Q06. Net earnings increased 94.9% to R$8.2 million due to strong sales growth across branded, generic, and OTC products. Adjusted EBITDA was R$21.6 million for 3Q07, a 12.9% increase over 3Q06, demonstrating improved profitability.
Profarma's market share reached a record 12.0% in 3Q07, with gross revenues growing 31.9% to R$698.2 million compared to 3Q06. Net earnings increased 94.9% to R$8.2 million in 3Q07 versus the same period last year. Adjusted EBITDA was R$21.6 million in 3Q07, representing growth of 12.9% over 3Q06, as the company's operations and financial metrics improved across key areas.
This document provides an overview of the ParentCo proposal, which includes options to buy or sell subsidiaries FashionCo, ApparelCo, and MediaCo, as well as restructuring ParentCo. Valuations are presented for each subsidiary using DCF and comparable company analyses. The proposal suggests carving out ApparelCo as its own public entity while retaining ownership in MediaCo to use its shares for acquisitions. This would increase transparency, attract new investors, and improve performance accountability across subsidiaries.
CPFL Energia is a leading private electricity company in Brazil. In the first nine months of 2004, it had net revenues of over R$5 billion and EBITDA of R$1.1 billion. It operates in distribution, commercialization, and generation of electricity, with distribution making up the largest portion of its EBITDA. CPFL Energia is focusing on reducing debt levels and increasing investments in generation projects to drive future growth.
Cosa hanno in comune un mattoncino Lego e la backdoor XZ?Speck&Tech
ABSTRACT: A prima vista, un mattoncino Lego e la backdoor XZ potrebbero avere in comune il fatto di essere entrambi blocchi di costruzione, o dipendenze di progetti creativi e software. La realtà è che un mattoncino Lego e il caso della backdoor XZ hanno molto di più di tutto ciò in comune.
Partecipate alla presentazione per immergervi in una storia di interoperabilità, standard e formati aperti, per poi discutere del ruolo importante che i contributori hanno in una comunità open source sostenibile.
BIO: Sostenitrice del software libero e dei formati standard e aperti. È stata un membro attivo dei progetti Fedora e openSUSE e ha co-fondato l'Associazione LibreItalia dove è stata coinvolta in diversi eventi, migrazioni e formazione relativi a LibreOffice. In precedenza ha lavorato a migrazioni e corsi di formazione su LibreOffice per diverse amministrazioni pubbliche e privati. Da gennaio 2020 lavora in SUSE come Software Release Engineer per Uyuni e SUSE Manager e quando non segue la sua passione per i computer e per Geeko coltiva la sua curiosità per l'astronomia (da cui deriva il suo nickname deneb_alpha).
Ivanti’s Patch Tuesday breakdown goes beyond patching your applications and brings you the intelligence and guidance needed to prioritize where to focus your attention first. Catch early analysis on our Ivanti blog, then join industry expert Chris Goettl for the Patch Tuesday Webinar Event. There we’ll do a deep dive into each of the bulletins and give guidance on the risks associated with the newly-identified vulnerabilities.
Fueling AI with Great Data with Airbyte WebinarZilliz
This talk will focus on how to collect data from a variety of sources, leveraging this data for RAG and other GenAI use cases, and finally charting your course to productionalization.
Building Production Ready Search Pipelines with Spark and MilvusZilliz
Spark is the widely used ETL tool for processing, indexing and ingesting data to serving stack for search. Milvus is the production-ready open-source vector database. In this talk we will show how to use Spark to process unstructured data to extract vector representations, and push the vectors to Milvus vector database for search serving.
Unlock the Future of Search with MongoDB Atlas_ Vector Search Unleashed.pdfMalak Abu Hammad
Discover how MongoDB Atlas and vector search technology can revolutionize your application's search capabilities. This comprehensive presentation covers:
* What is Vector Search?
* Importance and benefits of vector search
* Practical use cases across various industries
* Step-by-step implementation guide
* Live demos with code snippets
* Enhancing LLM capabilities with vector search
* Best practices and optimization strategies
Perfect for developers, AI enthusiasts, and tech leaders. Learn how to leverage MongoDB Atlas to deliver highly relevant, context-aware search results, transforming your data retrieval process. Stay ahead in tech innovation and maximize the potential of your applications.
#MongoDB #VectorSearch #AI #SemanticSearch #TechInnovation #DataScience #LLM #MachineLearning #SearchTechnology
HCL Notes und Domino Lizenzkostenreduzierung in der Welt von DLAUpanagenda
Webinar Recording: https://www.panagenda.com/webinars/hcl-notes-und-domino-lizenzkostenreduzierung-in-der-welt-von-dlau/
DLAU und die Lizenzen nach dem CCB- und CCX-Modell sind für viele in der HCL-Community seit letztem Jahr ein heißes Thema. Als Notes- oder Domino-Kunde haben Sie vielleicht mit unerwartet hohen Benutzerzahlen und Lizenzgebühren zu kämpfen. Sie fragen sich vielleicht, wie diese neue Art der Lizenzierung funktioniert und welchen Nutzen sie Ihnen bringt. Vor allem wollen Sie sicherlich Ihr Budget einhalten und Kosten sparen, wo immer möglich. Das verstehen wir und wir möchten Ihnen dabei helfen!
Wir erklären Ihnen, wie Sie häufige Konfigurationsprobleme lösen können, die dazu führen können, dass mehr Benutzer gezählt werden als nötig, und wie Sie überflüssige oder ungenutzte Konten identifizieren und entfernen können, um Geld zu sparen. Es gibt auch einige Ansätze, die zu unnötigen Ausgaben führen können, z. B. wenn ein Personendokument anstelle eines Mail-Ins für geteilte Mailboxen verwendet wird. Wir zeigen Ihnen solche Fälle und deren Lösungen. Und natürlich erklären wir Ihnen das neue Lizenzmodell.
Nehmen Sie an diesem Webinar teil, bei dem HCL-Ambassador Marc Thomas und Gastredner Franz Walder Ihnen diese neue Welt näherbringen. Es vermittelt Ihnen die Tools und das Know-how, um den Überblick zu bewahren. Sie werden in der Lage sein, Ihre Kosten durch eine optimierte Domino-Konfiguration zu reduzieren und auch in Zukunft gering zu halten.
Diese Themen werden behandelt
- Reduzierung der Lizenzkosten durch Auffinden und Beheben von Fehlkonfigurationen und überflüssigen Konten
- Wie funktionieren CCB- und CCX-Lizenzen wirklich?
- Verstehen des DLAU-Tools und wie man es am besten nutzt
- Tipps für häufige Problembereiche, wie z. B. Team-Postfächer, Funktions-/Testbenutzer usw.
- Praxisbeispiele und Best Practices zum sofortigen Umsetzen
Main news related to the CCS TSI 2023 (2023/1695)Jakub Marek
An English 🇬🇧 translation of a presentation to the speech I gave about the main changes brought by CCS TSI 2023 at the biggest Czech conference on Communications and signalling systems on Railways, which was held in Clarion Hotel Olomouc from 7th to 9th November 2023 (konferenceszt.cz). Attended by around 500 participants and 200 on-line followers.
The original Czech 🇨🇿 version of the presentation can be found here: https://www.slideshare.net/slideshow/hlavni-novinky-souvisejici-s-ccs-tsi-2023-2023-1695/269688092 .
The videorecording (in Czech) from the presentation is available here: https://youtu.be/WzjJWm4IyPk?si=SImb06tuXGb30BEH .
Programming Foundation Models with DSPy - Meetup SlidesZilliz
Prompting language models is hard, while programming language models is easy. In this talk, I will discuss the state-of-the-art framework DSPy for programming foundation models with its powerful optimizers and runtime constraint system.
Generating privacy-protected synthetic data using Secludy and MilvusZilliz
During this demo, the founders of Secludy will demonstrate how their system utilizes Milvus to store and manipulate embeddings for generating privacy-protected synthetic data. Their approach not only maintains the confidentiality of the original data but also enhances the utility and scalability of LLMs under privacy constraints. Attendees, including machine learning engineers, data scientists, and data managers, will witness first-hand how Secludy's integration with Milvus empowers organizations to harness the power of LLMs securely and efficiently.
Have you ever been confused by the myriad of choices offered by AWS for hosting a website or an API?
Lambda, Elastic Beanstalk, Lightsail, Amplify, S3 (and more!) can each host websites + APIs. But which one should we choose?
Which one is cheapest? Which one is fastest? Which one will scale to meet our needs?
Join me in this session as we dive into each AWS hosting service to determine which one is best for your scenario and explain why!
Salesforce Integration for Bonterra Impact Management (fka Social Solutions A...Jeffrey Haguewood
Sidekick Solutions uses Bonterra Impact Management (fka Social Solutions Apricot) and automation solutions to integrate data for business workflows.
We believe integration and automation are essential to user experience and the promise of efficient work through technology. Automation is the critical ingredient to realizing that full vision. We develop integration products and services for Bonterra Case Management software to support the deployment of automations for a variety of use cases.
This video focuses on integration of Salesforce with Bonterra Impact Management.
Interested in deploying an integration with Salesforce for Bonterra Impact Management? Contact us at sales@sidekicksolutionsllc.com to discuss next steps.
Taking AI to the Next Level in Manufacturing.pdfssuserfac0301
Read Taking AI to the Next Level in Manufacturing to gain insights on AI adoption in the manufacturing industry, such as:
1. How quickly AI is being implemented in manufacturing.
2. Which barriers stand in the way of AI adoption.
3. How data quality and governance form the backbone of AI.
4. Organizational processes and structures that may inhibit effective AI adoption.
6. Ideas and approaches to help build your organization's AI strategy.
1. Benchmarking
in a SaaS World
Lauren Kelley
www.opexengine.com
2. OPEXEngine Mission
To provide operating executives with key financial and performance
benchmarking and analysis tools to improve business outcomes.
OPEXEngine was founded by operating executives with decades of
experience in building high growth tech businesses and in the investment
community
Two information product lines:
1) Proprietary Annual Confidential Software Benchmarking
2) EDGAR Dashboards for Financial, Sales and Marketing, R&D, and G&A
www.opexengine.com
3. Why Benchmark?
For information
For early warning signs
For efficient decision-making
“We’ve participated in OPEXEngine’s confidential software benchmarking for the
past four years and find the data highly useful. As a fast growth, mid-sized, public
software company, we are data-driven in our management and planning processes
and OPEXEngine’s software benchmarking is a critical information source.” Ralph
Bryant, VP Finance, RightNow (RNOW)
www.opexengine.com
4. Data Driven Decision-Making
Shift from intuition and “gut instinct” decision-
making to data-based analytics and “DDD”
One-standard-deviation increase toward data
and analytics correlated with 5 to 6 percent
improvement in productivity and a slightly larger
increase in profitability in those same firms
Prof. Erik Brynjolfsson, MIT Sloan
Correlation between DDD and market value
CFO owns the data – across departments
www.opexengine.com
5. Critical SaaS Metrics Tracked
Revenue Metrics: Churn/Renewal Rates:
• CMRR • Customer Renewal Rate
• Change in CMRR • Dollar Renewal Rate
• Net New Monthly CMRR • Seat Renewal Rate
Customer Metrics: Payment Terms
• Subscriber #
• Average Contract Value per Customer Hosting Expense
• Average Customer Lifetime Value
• Cost of Customer Acquisition (COCA)
• Cost of Revenue
• Monthly gross margin per customer
• # months to break even
• Customer profitability
• Omniture‟s Magic Number for putting on
gas in sales and marketing
www.opexengine.com
8. Early Stage Software Company
$1M-$20M recognized revenue
Typically venture-backed, A&B round
Focus on figuring out scalable Sales and
Marketing and product refinement for
target market
Building infrastructure for a growth
company, while managing cash
www.opexengine.com
9. Early Stage Benchmarks
< $5M $5M - $20M
1 Year Revenue Growth 50% 32%
Rate
Operating Income - 19.8% -13.6%
Sales Expense 32.2% 30%
Marketing Expense 21% 13.1%
Head Count 23 62
Net Cash from -50% 5%
Operations as a % of
Recognized Revenue
Source: 2011 OPEXEngine Software Benchmarking Industry Report
www.opexengine.com
10. Mid-Sized, Private Software
Company
$20-$50M recognized revenue
Target market and customer profile well defined
Seeing economies of scale but also putting on
gas for high revenue growth and market
leadership
Additional venture funding for major growth push
Profitability “a choice”
www.opexengine.com
11. Mid-Sized Private Benchmarks
$20M - $50M
1 Year Revenue Growth 34.4%
Rate
Operating Income -6.4%
Sales Expense 30%
Marketing Expense 14.2%
Headcount 186
Net Cash from Operations -0.8%
as a % of Revenue
Source: 2011 OPEXEngine Software Benchmarking Industry Report
www.opexengine.com
12. Public Markets Rewarding SaaS
FINANCIAL DASHBOARD OPEXEngine
Company CRM N RNOW SFSF TLEO
Time Period First Half 2012 First Half 2011 First Half 2011 First Half 2011 First Half 2011
($000s)
Market Cap (priced as of the period end date) $19,549,308 $2,606,369 $1,167,955 $2,319,719 $1,516,341
Annualized Revenue to Mrkt Cap Multiplier 9 12 5 8 5
Recognized Revenue $1,050,366 $111,274 $107,145 $140,448 $141,206
Product Revenue as % of Recognized Revenue 93.6% 84.5% 81.5% 75.7% 85.1%
Services Revenue as % of Recognized Revenue 6.4% 15.5% 18.5% 24.3% 19.5%
Recognized Revenue (Prior Period) $771,185 $91,339 $85,556 $94,238 $111,322
Revenue Growth / Prior Period 36.2% 21.8% 25.2% 49.0% 26.8%
3 Year Revenue CAGR 28.1% 17.8% 17.4% 43.6% 23.4%
Total Cost of Revenue as a % of Recognized Revenue 21.3% 30.1% 31.6% 31.7% 34.0%
S&M Expense as a % of Recognized Revenue 51.2% 52.1% 44.3% 48.0% 35.4%
G&A Expense as a % of Recognized Revenue 16.1% 14.6% 11.7% 21.0% 19.3%
SG&A Expense as a % of Recognized Revenue 67.2% 66.6% 56.0% 68.9% 54.7%
R&D Expense as a % of Recognized Revenue 13.2% 18.3% 10.4% 20.9% 18.9%
Total Operating Expense as % of Recognized Revenue 80.4% 84.9% 66.4% 86.2% 73.6%
Total Operating Expense as % of Rev Rec + Change in Def
Rev 64.7% 73.7% 60.3% 59.8% 61.4%
Total Operating Profit Margin 0.8% -13.6% 5.5% -15.0% -5.2%
Total Net Margin -0.4% -15.7% 1.5% -3.0% -7.3%
EBITDA $105,204 $5,433 $8,184 ($9,659) $6,276
Total Headcount (Year End) 5,306 1,084 920 1,047 1,164
Total Revenue Per Employee $198 $103 $116 $134 $121
Total Operating Expense per Employee $159 $87 $77 $116 $89
Total Operating Profit per Employee ($3) ($15) $2 ($24) ($9)
EBITDA Per Employee $20 $5 $9 ($9) $5
www.opexengine.com
13. Case Study: Traditional Budget Process
No
Fnce Work Send „Final‟
Present Meet
Topline topline targets
Prelim to target
Targets with Yes out to Mgmt
CEO ?
Team
Sales
Start What Target?
Here
Send out Dept Mgrs work with
Send to Dept Head
HC & Opex teams to deliver reviews input
Templates Mgrs in recommendations from Mgrs
each Dept
No
Meet
What Target? dept
target
No ?
Finance & Yes
Close Meet
Finished CEO make target Send to Finance
Operating any additional ? for Overall
Plan changes company Rollup
Yes
www.opexengine.com
14. New Approach Using Benchmarks
to Support the Budget Process
MKTG
Depts
Present to
Bench- Update
Start Team for
Here
marking, an Support Sales PS Bench- feedback
alysis & Fin marking & and
rollup Fin Rollup discussion
R&D
www.opexengine.com
15. Best Practices
Incorporate benchmarking data up front in
budgeting and planning process and
review against it monthly/quarterly/annually
Communicate benchmarks regularly to all
executive departments and with Board to
drive Executive Team ownership and
collaboration and build credibility with the
Board
16. OPEXEngine‟s Annual Confidential
Benchmarking – Feb/March 2012
Comprehensive benchmarking of private and mid-cap software
industry with revenues from $1M -$400M
Companies input their data directly into our secure, on-line survey
form where data is aggregated and blinded
5 years of software benchmarking, database of 50,000+
datapoints
Hundreds of software companies participate
Individual Company Report and 60+ page Software Industry
Benchmarking Report covering over 150 individual financial and
operating benchmarks
New interactive tools and secure, on-line portal to develop
custom benchmarking reports
OPEXEngine focuses on operational areas like Finance, Sales and Marketing, G&A, and R&D productivity. In the SaaS sector, we also benchmark a number of critical customer and pipeline metrics.We provide data to help companies fine tune their business model and figure out course corrections. We deliver peer comparisons for a variety of internal management purposes, as well as for valuations, exits, and outside investors. Since we tend to work with high growth, metrics-driven companies, it’s a dynamic business as quite a number of our clients, both the largest ones, and the smaller ones, tend to get acquired… Luckily, there’s always new tech companies coming along and in the course of 6 years, with 50-100% growth rates, we’ve seen early stage companies grow up and become public and expect we will continue to do so.
One of the key SaaS benchmarks, as is often discussed, is churn. We track it by the number of customers up for renewal, as well as the total dollar value up for renewal and now also by the number of seats up for renewal. A couple of trend observations: generally, smaller companies have higher churn than larger. Part of why larger companies get larger is that they don’t have as high churn. But the reality is that most companies have higher churn when they are small because they are still fine-tuning their sales and marketing model, and they may not yet have the best customer support organizations, which are critical to maintaining the customer relationship and renewals. Part of successfully growing your SaaS business is attacking the churn beast. We also see a similar difference in churn rates between companies selling large contract value subscriptions – typically more of an enterprise solution – and companies selling high volume, low cost subscriptions. It makes sense because customers who choose to purchase an expensive software application, even if it is delivered as a SaaS application, typically went through a longer sales cycle, the purchase was more strategic, and they aren’t going to drop it quickly. At the same time, customers that buy a cheaper SaaS application, especially if there is a fair amount of competition in the market for that problem, after a short sales cycle and less invested, may churn more easily.
Here we see a few of the typical SaaS expense ratios. The interesting thing to see is how the Cost of Revenue benchmark doesn’t change dramatically as revenue increases, its about 37% for SaaS companies averaging around $10M, and drops slightly for companies averaging about $30M in revenues, then only drops to about 34% for the largest SaaS vendors over $100M. For the biggest SaaS company, SalesForce, they showed Cost of Revenue as a percent of recognized revenue at 19.5% for FY2011. While Cost of Revenue ratios don’t drop dramatically as revenue grows, R&D as a percent of revenue definitely drops after the early stage under $20M, going from about 24% for the early stage companies dropping by about half for both the mid-sized private companies and average public companies over $100M in revenues at about 12%.Sales as a percentage of revenues drops nicely from 34% to 25% to 15% for the largest companies, although coupled with Marketing, you still tend to see something like 45-50%, or even higher, on sales and marketing among the largest companies.
The market is definitely rewarding recurring revenue model with higher revenue to market cap multiples than “traditional” software firms, even though those SaaS firms are spending at a higher rate, and some even are in the red in some profitability metrics.
This slide was developed by one of our clients, Rally Software, a fast growth vendor of Agile development tools based in Colorado. Hopefully this visual doesn’t represent the budget process at your company, but onemay recognize this budget process chaos. In the traditional budgeting process, Finance sends out operating expense templates to each department with some direction on how much to either grow or decrease expenses, meanwhile Finance is working the topline revenue projections with the head of Sales and CEO and the various elements of the budget go back and forth between departments, finance and the CEO until the plan is finalized and in the end, everyone is just glad when the process is over, regardless of the outcome. In the new model budget process, the finance department sends out its regular package to each operating department, but also includes a copy of relevant operating expense benchmarks for peer companies, and includes benchmarks for all parts of the company, so executives can see how the whole thing fits together, instead of just focusing on their department. Then, department heads come together to discuss each department’s needs and the overall model, and how the company is doing compared to peers and leadership companies. Because of the new process, executives found the budget process to be much more friction-free, and productive (department heads even say they like the budget process!).
So, in the new process, Rally Finance used benchmarking analysis to drive a process whereby department heads could make informed budget requests. Subsidiary benefits to the new process were :increased transparency of the process,It was highly collaborative, the management team felt very strong ownership of the plan, and the overall process helped build credibility with the Board of Directors. And while Finance put the whole thing together and drove the process to a productive and efficient conclusion, no one felt like Finance was the heavy but in contrast, the executive team felt Finance had led a very successful, strategic planning process.
So, to summarize some of the best practices we’ve seen in our benchmarking work with clients. First and foremost – share the data! Finance owns the data but you need informed inputs from the rest of the operations of the company. You’ll get better buy-in on the model from everyone else if you are all on the same page. That also means ensuring that you are all using the same definitions: for example, on revenue recognition, or on customer profitability – which is something that Finance needs to lead. It doesn’t work if Sales has one definition of revenue recognition and Finance has another, or Marketing has a different view of customer profitability than Finance.In conclusion, critical operating investments and performance targets are set all the time without good quality comparisons of those numbers to peer data, especially in small and mid-sized companies. Part of that is because companies don’t have access to easy-to-use benchmarking tools to help them make operational decisions – and OPEXEngine is working to change that. Most of the data tools that are out there today were developed to help the investment community analyze investments, or to help companies present themselves to the investment community, but OPEXEngine is focused on helping operating executives use benchmarks and peer comparisons to improve business outcomes..