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So PagerDuty is one of the most interesting SaaS case studies
It IPO'd at $125m ARR selling mainly to SMBs, with just 100 larger customers
But to get to $250m ARR, it went quite enterprise. But not until well >after< IPO
5 Interesting Learnings:
It IPO'd at $125m ARR selling mainly to SMBs, with just 100 larger customers
But to get to $250m ARR, it went quite enterprise. But not until well >after< IPO
5 Interesting Learnings:
#1. PagerDuty’s biggest change has been in going upmarket and more enterprise post-IPO.
That segment is growing 44% vs. 28% overall
It’s an interesting contrast to Zoom, Zendesk, and Slack, which recently have seen enterprise and SMB growth be about equal post-Covid.
That segment is growing 44% vs. 28% overall
It’s an interesting contrast to Zoom, Zendesk, and Slack, which recently have seen enterprise and SMB growth be about equal post-Covid.
#2. NRR is up after going more enterprise, but not as much as you might think
PagerDuty’s NRR of 121% remains very impressive -- but is basically same as when they were more SMB, despite the largest growth being in $500k & $1m+ customers
PagerDuty’s NRR of 121% remains very impressive -- but is basically same as when they were more SMB, despite the largest growth being in $500k & $1m+ customers
#3. 95% renewal rate, even with 10,000+ SMBs.
Even with 10,000+ SMB customers out of 13,800 total, PagerDuty sees an incredible 95% renewal rate
This is far higher than many products that sell to small businesses
You can do it, too -- if you add enough value. #noexcuses
Even with 10,000+ SMB customers out of 13,800 total, PagerDuty sees an incredible 95% renewal rate
This is far higher than many products that sell to small businesses
You can do it, too -- if you add enough value. #noexcuses
#4. 8th straight quarter where at least 33% of its enterprise customer accounts expanded.
This is an interesting way to see NRR presented and maybe a good KPI to track, i.e. what % of your customers each quarter have grown?
At PagerDuty, it’s been 33%+ for 8+ quarters
This is an interesting way to see NRR presented and maybe a good KPI to track, i.e. what % of your customers each quarter have grown?
At PagerDuty, it’s been 33%+ for 8+ quarters
#5. Expanding beyond its core product is key to growth
We’ve seen this time & time again after $100m ARR
PagerDuty’s core product is incident response
* Customers who also use it for security grew 56%
* Customers who also used it for customer service grew 40%.
* vs 28% overall
We’ve seen this time & time again after $100m ARR
PagerDuty’s core product is incident response
* Customers who also use it for security grew 56%
* Customers who also used it for customer service grew 40%.
* vs 28% overall
