Is it Really ARR? In 2021, Yes, As Long As Your NRR is 100%; Plus Weekly SaaS News and Updates

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Hey SaaStr Community,

So many startups these days are claiming they have “ARR” from revenue that … doesn’t recur.

Doesn’t ARR stand for Annual Recurring Revenue?

Well, of course, it does. But like “Cloud” and “SaaS”, its real-world definition has evolved. ARR now really means any type of software-related revenue with 100%+ Net Revenue Retention. Even if it’s not truly recurring. Even if it’s consumption-based. Even if there’s no contract at all.

> Let's take a look at 3 great examples

New This Week

5 Interesting Learnings from Squarespace at $700M

Squarespace has 1,200 employees and $700m in ARR. That’s pretty darn efficient. As a result, it’s quite profitable, with $150m in free cash flow in 2020.

Here are the five interesting learnings -->

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

What Marketing Mostly Means at $0m, $1m, $10m, and $40m ARR

At $10m-$20m+ ARR add Brand Marketing and real product marketing. As you cross $10m ARR, usually, you have enough customers that you’ve started to build a real brand. As you truly scale, most of your leads will come from your brand.

You won't need a CMO much before $8m-10m ARR -->

Join CEOs & CTOs of Qualtrics, Thoughtspot, Salesforce Service Cloud, Elastic, Auth0, Zendesk at FREE SaaStr Enterprise 2021!

Join us at SaaStr Enterprise: May 26-27. Core passes are free, or you can upgrade with code saastrweekly to grab a VIP networking pass for $299. (Prices increase to $499 on May 1.)

Sign up for SaaStr Enterprise -->

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

8 Simple Ideas to Inspire The Team

#4 Say thank you. This almost always works. Call out whomever has done a great job. Call out fewer VPs, and more ICs. And it’s totally OK to give them a nice dinner gift certificate, or weekend, or small bonus, or whatever too.

Spend more time with customers not just prospects -->

How Asana Incorporates Customer Insights Into Product Development

Head of Experience Research at Asana, Beth Toland, shares how to make customer insights part of product development and strategy from ideation to delivery.

Watch now -->