Sep 10, 2021

Top Ways Freemium or Bottoms-up SaaS Companies Spend Money

Quick visual for the SaaS Fans out there.

This chart shows how the company has ran over the LTM (Last 12 months) as a % of Revenue Growth.

Monday.com is one to look at. Take a look at this chart.

Monday.com Paid Google Ads Spend (PPC) — Monday.com Spending on Paid Google Ads

They do not have a big sales team. Yet they're spending a lot on Marketing and Sales.

In fact, they're spending about +$1m per month on just Google Ads alone. They've seemingly figured out the secret to YouTube and Facebook Ads as well.

Keep an eye on this efficient way of scaling. Their growth is through the roof and it depends on Ad Campaigns.

Here is the breakdown as of 8-19 against Implied ARR% relative to the company's growth.

	YoY ARR Growth	S&M	R&D	G&A
Lightspeed POS	218%	41%	23%	17%
Zoom	191%	19%	4%	9%
Monday.com	94%	103%	20%	12%
Twilio	67%	27%	19%	11%
Datadog	67%	29%	30%	7%
Bill.com	62%	24%	31%	28%
DocuSign	61%	44%	14%	10%
Asana	61%	72%	44%	31%
Shopify	57%	17%	12%	5%
HubSpot	53%	45%	19%	9%
Elastic	44%	39%	26%	14%
KnowBe4	42%	43%	11%	26%
MongoDB	40%	45%	25%	11%
Smartsheet	40%	52%	24%	14%
Okta	38%	45%	19%	15%
BigCommerce	38%	43%	28%	21%
RingCentral	37%	44%	14%	11%
Atlassian	36%	16%	34%	12%
DigitalOcean	36%	10%	21%	18%
Wix	34%	40%	24%	8%
Zendesk	29%	50%	25%	14%
Squarespace	28%	42%	23%	9%
Dropbox	12%	19%	27%	9%
New Relic	11%	46%	20%	13%

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