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5 Interesting Learnings From Workday at $9 Billion in ARR

SaaStr

27%+ Free Cash Flow margins, 26% non-GAAP profit margins, and $8 Billion in the bank, so generating massive cash $57 Billion market cap, so trading at 6x+ ARR Workday is 20 years old this year. Wow, what an engine at Workday. Subscription backlog up 19.7%, to $25 Billion (!).

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B2B Startups Spend 15% of Revenue on Sales and 10% on Marketing, Per SaaS Capital

SaaStr

Engineering and G&A come down after $20m ARR but not sales and marketing. Renewals become a cash generating engine. And public B2B companies spend as much as they can to still maintain their target profitability margins. Nor has sales & marketing ever really come down as you scale.

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Perplexity launches ad revenue sharing program for publishers

Search Engine Land

Perplexity’s CBO Dmitry Shevelenko acknowledges the program may impact profit margins but sees it as necessary for long-term success. What they’re saying: “It’s a much better revenue split than Google, which is zero,” says Automattic CEO Matt Mullenweg.

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How to Increase Profit Margin: 5 Strategies for Any Business

Hubspot

Every company has its eyes on its bottom line and, in turn, is mindful of its profit margin — the most definitive metric of how successful your sales efforts are, relative to your expenses. Ways to Increase Profit Margin. If you want to improve your profit margin, you can't go in blind.

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AI adoption in CX is rising, but implementation challenges remain

Martech

According to Nextivas 2025 CX Landscape report, 89% of CX decision-makers say their execs understand CXs impact on profit margins. According to The Future of Customer Engagement from Apply Digital, only 5% of senior execs said personalization engines were delivering sufficient ROI.

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SaaS Rule of 40 Drivers Using KeyBanc’s 2021 SaaS Survey

SaaStr

In simple terms, the “Rule of 40” states a healthy SaaS company’s a) revenue growth rate plus b) profit margin should exceed 40%. . In equation form, Revenue Growth % + Profit Margin % > 40%. The “Rule of 40” treats 1% of revenue growth as exactly equivalent to 1% of profit margin.

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How to Successfully Cut Costs and Keep Your Team Together in Tough Times

Sales Hacker

Sales should be one of the last places to reduce costs — after all, salespeople are the engine of the revenue machine. Consider switching up your compensation plan if you have a product with tightening margins or if margins need to be defended. One thing you can try is to comp your reps on profit margin instead of on revenue.