Open in app

Sign In

Write

Sign In

Sammy Abdullah
Sammy Abdullah

18.2K Followers

Home

About

2 days ago

Q2 SaaS Margins & Op loss

Are SaaS companies burning less cash? We looked at the operating income and margin of every SaaS company that has IPO’d since October 2017 (62 companies). The data is below and shows that operating margin and loss have improved. Below is the data.

SaaS

2 min read

Q2 SaaS Margins & Op loss
Q2 SaaS Margins & Op loss
SaaS

2 min read


4 days ago

Q2 SaaS cash efficiency & payback period data

Are SaaS companies spending less to add new revenue? We looked at the ‘cash efficiency’ of every SaaS company that has IPO’d since October 2017 (64 companies). The definition of cash efficiency is net new revenue/operating loss, so the higher the figure, the more revenue is being added for each…

SaaS

3 min read

Q2 SaaS cash efficiency & payback period data
Q2 SaaS cash efficiency & payback period data
SaaS

3 min read


6 days ago

Q2 SaaS metrics and financials (NDR, growth, efficiency)

We keep close track of every SaaS IPO in the past five years (since MongoDB in October 2017). Those 62 companies have all now issued their Q2 2023 earnings reports (Except Zscaler, but we’re not waiting on them). Below we summarize key financials and metrics.

Venture Capital

3 min read

Q2 SaaS metrics and financials (NDR, growth, efficiency)
Q2 SaaS metrics and financials (NDR, growth, efficiency)
Venture Capital

3 min read


Sep 14

SaaS acquisition multiples ~8x

Alongside multiples of publicly traded SaaS companies, public SaaS acquisitions are some of the most relevant you can look at for deriving SaaS revenue multiples. These transactions are all cash, the financials are public and audited, and these are all control transactions so the data is about as pure as…

Venture Capital

3 min read

SaaS acquisition multiples ~8x
SaaS acquisition multiples ~8x
Venture Capital

3 min read


Sep 12

SaaS best practices for sales, onboarding, and CS

We met with a SaaS business that in our view is operating using best practices. Below some of my notes which you may find helpful for your own SaaS business. Customer Success. At this company, customer success reps are specialized by industry so that they can speak the customer’s language…

Venture Capital

3 min read

SaaS best practices for sales, onboarding, and CS
SaaS best practices for sales, onboarding, and CS
Venture Capital

3 min read


Sep 11

Average R&D Spend at 140 SaaS co’s

What is an appropriate level of development or R&D expense for a successful SaaS business? We looked at 141 SaaS IPOs at the time of IPO (since Dropbox in March 2018 ) to get a sense for how successful SaaS businesses allocate to R&D. The raw data and observations are…

Venture Capital

3 min read

Average R&D Spend at 140 SaaS co’s
Average R&D Spend at 140 SaaS co’s
Venture Capital

3 min read


Sep 5

“Strategic” investors don’t matter

Strategic investors, defined as corporations that make venture investments, can be a valuable source of capital but are they critical? No. We dug through the filings of 202 tech companies and found that only 32 of them had a strategic investor (16%). The list is below.

SaaS

3 min read

“Strategic” investors don’t matter
“Strategic” investors don’t matter
SaaS

3 min read


Sep 1

Tech founder ownership at exit

The list below shows founder or CEO ownership of 202 tech companies at IPO. The median level of founder ownership shown is 15% while the average is 20%.

Tech

3 min read

Tech founder ownership at exit
Tech founder ownership at exit
Tech

3 min read


Aug 29

Klaviyo should ignite SaaS IPOs

On August 25th, Klaviyo filed an S1 which is a prospectus companies issue prior to IPO. We read through it, and we believe Klaviyo is likely to restart the market for software IPO’s, so long as they look like Klaviyo (nice growth and slightly profitable). Below are some of the…

Venture Capital

4 min read

Klaviyo should ignite SaaS IPOs
Klaviyo should ignite SaaS IPOs
Venture Capital

4 min read


Aug 28

SaaS Founder Ownership at IPO

The founders of Jfrog owned 24% of the business at IPO. Viant’s founders owned 93% and Datto’s founder owned 15%. Braze’s founders owned only 4% combined. The range of founder ownership at exit/IPO can be quite wide and is dependent on any number of factors, including the ability to command…

SaaS

2 min read

SaaS Founder Ownership at IPO
SaaS Founder Ownership at IPO
SaaS

2 min read

Sammy Abdullah

Sammy Abdullah

18.2K Followers

co-founder at Blossom Street Ventures. Email me at sammy@blossomstreetventures.com

Following
  • Sarah Soledad

    Sarah Soledad

  • ShaneThe Balance Guy

    ShaneThe Balance Guy

  • Stephen Huerta

    Stephen Huerta

  • Brittany Beth

    Brittany Beth

  • Colby Ranae Hanks

    Colby Ranae Hanks

See all (54)

Help

Status

Writers

Blog

Careers

Privacy

Terms

About

Text to speech

Teams