Is Another SaaSacre In The Offing?
I’m not a financial analyst and I don’t make stock recommendations [1], but as a participant and observer in the software investing ecosystem, I do keep an eye on macro market parameters and I read a fair bit of financial analyst research. Once in an while, I comment on what I’m seeing. In February 2016, […]
Rule of 40 Glideslope Planning
Enterprise SaaS companies need a lot of money to grow. The median company spends $1.32 to acquire $1.00 in annual recurring revenue (ARR) [1]. They need to make that investment for 14 years before getting to an IPO. It all adds up to a median of $300M in capital raised prior to an IPO. With such vast amounts […]
SAP buys Qualtrics – Some quick thoughts
I saw the news on twitter yesterday night that SAP is buying Qualtrics for $8B cash – most of it financed . I am writing this blog post strictly in my personal capacity and it doesn’t represent my employer’s opinions . I have no prior knowledge of this deal. I have worked in the SAP […]
The Domo S-1: Does the Emperor Have Clothes?
I preferred Silicon Valley [1] back in the day when companies raised modest amounts of capital (e.g., $30M) prior to an IPO that took 4-6 years from inception, where burn rates of $10M/year looked high, and where $100M raise was the IPO, not one or more rounds prior to it. When cap tables had 1x, […]
Bookings vs. Billings in a SaaS Company
Financial analysts speak a lot about “billings” in a public SaaS companies, but in private VC-backed SaaS companies, you rarely hear discussion of this metric. In this post, we’ll use a model of a private SaaS company (where we know all the internal metrics), to show how financial analysts use rules of thumb to estimate […]
Zuora files for IPO
After the markets closed on Friday, Zuora announced it had filed paperwork for an initial public offering (IPO) with the Securities and Exchange Commission (SEC). Although the quantity and price of the class A common shares has not been set, the company intends to trade on the New York Stock Exchange with the symbol ZUO. […]
Kellblog Predictions for 2018
In continuing my tradition of offering predictions every year, let’s start with a review of my hits and misses on my 2017 predictions. The United States will see a level of divisiveness and social discord not seen since the 1960s. HIT. Social media companies finally step up and do something about fake news. MISS, but ethical […]
A Look at the Tintri S-1
Every now and then I take a dive into an S-1 to see what clears the current, ever-changing bar for going public. After a somewhat rocky IPO process, Tintri went public June 30 after cutting the IPO offering price and has traded flat thus far since then. Let’s read an excerpt from this Business Insider […]
Why has Standalone Cloud BI Been Such a Tough Slog?
I remember when I left Business Objects back in 2004 that it was early days in the cloud. We were using Salesforce internally (and one of their larger customers at the time) so I was familiar with and a proponent of cloud-based applications, but never felt great about BI in the cloud. Despite that, Business […]
The Evolution of Marketing Thanks to SaaS
I was talking with my friend Tracy Eiler, author of Aligned to Achieve, the other day and she showed me a chart that they were using at InsideView to segment customers. The chart was a quadrant that mapped customers on two dimensions: renewal rate and retention rate. The idea was to use the chart to […]
