5 Interesting Learnings from Zendesk at $1.6 Billion in ARR; Plus Weekly SaaS News and Updates

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Hey SaaStr Community,

There are a lot of “VC-isms”, and one you hear a bit is The Clear Path.

What’s that? It’s a way of summarizing the combination of current growth, TAM, and future prospects into where things are going.

While it can be more than annoying to hear all your hard work as a founder reduced to how “clear your path” is to the next stage, it’s actually an incredibly useful heuristic for communicating.

One Thing Your Team and Investors Always Need to See: A Clear Path

READ MORE

5 INTERESTING LEARNINGS FROM ZENDESK AT $1.6 BILLION IN ARR

Zendesk has really grown up. As we’ll see, it’s growing a very impressive 30% at $1.6 Billion in ARR, and has slowly and steadily gone quite

upmarket. It’s moved beyond its tiniest customers, of an ACV of < $1k, but other than that, it’s going upmarket without giving up its SMB roots.

In fact, Q1’22 was Zendesk’s highest first-quarter revenue increase in history.

THE LEARNINGS

This edition of the SaaStr weekly is sponsored in part by WorkOS

SAASTR ANNUAL 2022 EXPANDS ITS VIP INCLUSION PROGRAM TO 2,000. PLEASE APPLY NOW AND JOIN US!!

Equality, Inclusion and Balance have been part of SaaStr’s core values since inception.

It’s now more important than ever to fight for inclusion and equal rights for all.

As part of that, we’re now expanding the no-cost tickets and VIP passes to 2022 SaaStr Annual to 2,000 participants.

Please apply now, and please tell your colleagues and friends.

APPLY NOW

This edition of the SaaStr weekly is sponsored in part by Laika

Q&A: AS A CO-FOUNDER, WHEN DO YOU KNOW IT’S TIME TO QUIT?

It's a tough decision, and usually when you're making it, you're so, so tired. And that's not the best time to make a decision.

THE ANSWER

VIDEO OF WEEK: BALANCING GROWTH AND EFFICIENCY IN TOUGHER TIMES WITH POINT NINE MANAGING PARTNER CHRISTOPH JANZ

In the last few weeks, the VC funding environment has changed dramatically. In this session, Point Nine Managing Partner Christoph Janz will share tactical advice on how to weatherproof your financial plan for the funding downturn.

WATCH NOW

SAASTR ANNUAL AGENDA IS LIVE! SELECT YOUR SESSIONS NOW!

SAVE 20% ON TICKETS

SaaStr is seeking new team members! We're hiring in Sales, Marketing, Event Content, and Customer Success. If you're ready to help us grow the SaaStr community, see all the opportunities!
Paragon is looking for an Account Executive to help us grow by partnering with SMB and mid-market customers while helping us shape the team culture and work environment from ground zero.

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Classic Episode: How to Market to Both Developers and Operators with with Shippo Co-Founder & CEO Laura Behrens Wu

LISTEN NOW

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Mind the Gap: Balancing Growth and Efficiency in Tougher Times with Point Nine Managing Partner Christoph Janz

LISTEN NOW

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Classic Episode: Succeeding As a Young Enterprise Founder with Front Co-Founder and CEO Mathilde Collin

LISTEN NOW

Listen on Apple Podcast, Google Podcasts or Spotify

Maybe Slack was right to sell at 27x ARR after all

My biggest hiring mistake I've made past 5 years that I never made before:

I hired folks who didn't really, really, really want the job

So far, none have worked out

Very few SMB SaaS startups start off with NRR much above 80%

But very few thrive if they don't at least get to 100%

Biggest existential challenge for SMB SaaS

So here’s where I’m confused

If SaaS multiples are truly tied to interest rates

Who exactly modeled 0% forever in their DCF models??

Everyone modeled in zero percent forever?

255 Kansas, Suite 300, San Francisco, CA 94103

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