Does SaaS = Software-as-a-Subscription?
No, but it's honestly not that far off.
Even with all the talk about usage-based pricing, payments/FinTech and B2B marketplaces...
- 82% of SaaS revenue still comes from software subscriptions
- The next largest contributor is professional services (8%)
- Usage or pay-as-you-go takes third place (6%)
If you look more closely, though, things are slowly changing:
1. One-in-two SaaS companies charge for professional services. For these folks, ~15% of revenue comes from ProServ.
In the current environment, more folks are billing for ProServ separate from software rather than letting ProServ costs eat into gross margins.
2. One-in-five SaaS companies have a pure usage-based or pay-as-you-go revenue stream. For these folks, ~35% of revenue comes from pure usage.
Yes, usage-based pricing and subscriptions can/do co-exist -- and the norm is hybrid pricing rather than either/or.
3. One-in-ten have a payments or FinTech revenue stream. For these folks, ~27% of revenue comes from it.
This is especially common in vertical SaaS (think: Toast, MINDBODY, Shopify).
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The takeaway: prepare for multiple revenue streams and more monetization complexity. The new SaaS is "subscription+".
#saas #revenue #saasbenchmarks