As it stands, SaaStock is considered one of the world's biggest gatherings of the SaaS community. A latest forecast from Grand View Research estimated that the SaaS market was worth $165.9 billion last year, expanding at a compound annual growth rate of 11 percent from 2022 to 2028 to $344.3 billion. And adding to the mix, according to recent statistics, the subscription billing management market is set to grow to 7.8 billion by 2025 at a compound annual growth rate of 14%. With all that and adding the insight we have on subscription business for SaaS and expansion to the UK and Ireland, it was a perfect fit for the Younium team to be part of SaaStock 2022 Dublin as partners. Our recent office opening in Philadelphia proves us that subscription business is not in the future; it is present for SaaS, and subscription management solutions tailored for SaaS are integral for managing the subscription life cycle.
SaaS is buzzing, and this year's annual SaaStock in Dublin showed the case to be proven, with 5,000 founders and executives gathering to hear from over 150 business leaders.
We all see the economic uncertainty, and this was the topic that everyone brought with them to pick up on advices how to act in 2023.
In that light here we bring you key takeaways:
Important metrics 2023
- Growth is number one for valuation, but now (with the economic situation), financial effectiveness and going towards profitability earlier is more critical for SaaS. CFOs will take the lead in decision-making. Finance teams are crucial team members who need to position themselves as vital partners for go-to-market strategy and take responsibility for data. Empowering them with the right tools that will free up their time to be more efficient in tracking and automating billing will be something founders in SaaS will need to look at.
- Gross margin is an essential SaaS metric. Here we see the key roles that finance teams play, especially when we discuss having accurate metrics in place and not having revenue leakage, which our commercial director Wolter covered in a webinar on this topic From Revenue Leakage to Revenue Generation.
A key recommendation is to forecast more frequently and plan for different scenarios. Understand your SaaS metrics and KPIs. Stay calm, and make a plan, this opens the door to reacting quickly to changing market conditions.
Markets and ICP
- Respect your ICP and enable all your teams to have a clear ICP and sell to the right target group. Have in mind your markets, and specifics of same, as Hanno Renner, Co-founder and CEO of Personio stated in live event podcast.
Transformation is happening
That said, we understand the importance of data, and looking at our insights and our customers, how emphasizing is done on forecasting in the subscription business. SaaStock Dublin was under umbrella of data and transformation from software to data companies. SaaS companies are seeing the importance of data as key driver of growth, and the shift from software to data companies is happening. Initial steps taken over most of the SaaS industry.
Undernote of this years SaaStock was on Diversity-Inclusion-Equality, and it is getting more recognized; SaaS industry has requested to work harder to bring marginalized voices to center stage. Echoing on "Diversity is being invited to the party; inclusion is being asked to dance" from Verna Myers choosing the music to play at the party is equality was said on the event.
And what about venture capital? SaaS funds are there; they can be raised, as Armand Naessens, Investment Analyst at Netherlands-based venture capital company Newton, stated in our blog on Raising SaaS funds in times of economic crisis. VCs are more risk-averse with doling out money for one reason: they need to give at least 5X back to their investors. You're your SaaS metrics in place; your subscription metrics are vital. VCs will look at a holistic view of your organization. Yet again, we hear data and metrics.
SaaStock Dublin 2022 went by in a second with a high energy level with a lot of incredible talks about subscription management, meetings with our partners, customers (potential customers), and peers on sharing insights with the most exciting new SaaS companies in the industry.
It was amazing and inspiring to meet up and to meet prospective customers from i.e UK, Germany, and Ireland, but now it is time to get data in place.
Watch Younium Founder and CEO Niclas Lilja and Commercial Director Wolter Rebergen in action at SaaStock 2022 Festival.