SaaS METRIC OF THE WEEK: MRR: Subscription revenue is powerful. It accumulates and compounds over time, and MRR, or Monthly Recurring Revenue, is a predictable (..get it?) SaaS Metric Classic - so this is a deep dive article into everything you ever wanted to know (and much, much more) about these standard metrics, covering different MRR types, differences between MRR and ARR, etc.
PRICING 2: Speaking of that OpenView report - you can download that here. It's a survey of almost 600 SaaS companies, and it's fantastic, measuring a 2x adoption of usage-based pricing in companies surveyed since they started the study back in 2018. There is also a great slide (#16) with a decision tree to decide if usage-based pricing is right for your business.
EMPLOYEES: Here is a great question: How many employees should you have based on your ARR? David Sacks has a great slide from his SaaStr presentation on optimal SaaS Org Charts - Series A is 40-50 at 1m ARR. Yup, that's only $20-$25k ARR per employee - full report here, which expands into what roles you should hire and how the org chart looks.
AHA: This is an excellent read on product design centered on discovery - what the author references as "Aha moments" - through a customer journey from first encounters through to deep adoption that focuses on the concept of long-term retention.
TECHNOGRAPHIC: Add this doozy of a Portmanteau to your dictionaries and spell checker. You should read that whole article also, as I don't know about you, but the number of tech vendors we use to run our tech business stresses me out, with services flopping in and out all the time! This leads nicely into the article: How Many Technologies Can a Company Adopt at Once? Answer - there is always one more (JK, but not really).
T3D3: No - this is not a reference to a droid in Star Wars. It's an update to the much referenced T2D3 metric that Neeraj Agarwal of Battery Ventures wrote about back in 2015. T2D3 is an acronym for "triple, triple, double, double, double." It refers not to In-N-Outs secret burger menu but to a company's annualized revenue growth performance path towards becoming a unicorn. T3D3 is the updated version of that acronym: "triple, triple, triple, double, double, double." Jason Lemkin argues that this change is the "cost" in the explosion of valuations and market caps.
CASE STUDY: Expensify is an overnight success over a decade in the making. It actually took Expensify 13 years to hit 140m ARR but is now growing at 60% year-on-year with only 140 employees (compare that to #4 above) - it's a lean + PLG story.