Why is a $120 million ARR SaaS Company Worth $7 Billion?

Why is a $120 million ARR SaaS Company Worth $7 Billion?

SaaS valuations are at an almost all-time high. The Software Equity Group reported that the median EV/Revenue multiple for public SaaS companies in Q2 2021 was 14.3x. The top 25 SaaS companies in the SEG SaaS Index had EV/Revenue valuations that ranged from 25.3x (Sprout Social) to 90.4x (Snowflake). While Gong’s most recent valuation of $7 billion on $120 million ARR is high – 60.4x – it is not unreasonable. Gong has shown consistent high revenue growth coupled with a strong ROI for its customers.

Why Do Product Manager Value Equations Suck?

Why Do Product Manager Value Equations Suck?

Value equations describe the quantitative and qualitative benefits a customer can receive from implementing a software product. They answer the buyer’s inevitable question “What’s in it for me?” Recently I worked with a SaaS company that had what I considered to be a cool product. They struggled to crisply and credibly explain what value customers would get. They relied on generic statements like reducing customer churn and increasing productivity. When asked to back up their statements with hard numbers and credible customer success stories they drew a blank. Most product managers are in the same boat

The Ugly Truth of B2B SaaS Customer Acquisition Costs

The Ugly Truth of B2B SaaS Customer Acquisition Costs

Acquiring customers is the biggest challenge any B2B software company has. Unless you are lucky enough to have an award-winning solution that sells itself like the mythical product-led growth companies (Slack, Dropbox, and Expensify), you have to grind it out like everyone else. The ugly truth of B2B SaaS customer acquisition cost is that you need to fill the top of your sales funnel with hundreds of thousands of suspects to get a reasonable number of closed sales.

25 Product Management Memes for 2021

25 Product Management Memes for 2021

I belong to a Facebook Group called Product Management Memes. It has over 2,800 members and is simply a meme stash for product managers, marketers, and corporate life. People post amusing stuff every day. There’s no self-promotion or spam, just entertainment, Here are 25 of the most popular posts from the past few months based on likes and shares.