Article · 9 min read

How can SaaS startups tackle scaling beyond $50mn in ARR?

Vyushita Sahay · SeedToScale by Accel Free Advanced India

Accel's argument that expansion revenue is the specific thing that carries a company past $50M ARR, with the Twilio and Shopify revenue-mix numbers to show what it looks like when it works.

  • Past 50 million dollars ARR the equation is Revenue = new revenue + expansion revenue minus churn.
  • Twilio held a net expansion rate of roughly 135 to 140 percent for four straight years.
  • Shopify's transaction-based merchant solutions went from 24 percent of revenue in 2013 to 57 percent in 2018.
Open on seedtoscale.com ↗

It answers 4 questions

  1. What does land and expand mean, and does it apply to my company?
  2. How did Snowflake reach 158 percent net revenue retention, and what is actually copyable?
  3. Does usage-based pricing really lift expansion, and should we switch?
  4. How do the best teams expand beyond the first team that bought?

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