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ADOPTION OF PRODUCT LED GROWTHSTRATEGIESMost companies arePLGCompaniesAllCompaniesFree trial offering74%45%Product analytics for decision making67%31%Self service buying experience61%28%Bottoms-up sales55%31%Product qualified leads53%29%Referral programs50%31%Dedicated growth FTEs47%27%discussed – has only beenFreemium offering38%18%adopted by 18% of companies.experimenting with PLG butrelatively few have gone ‘all in’(just 33% of respondents reportPLG being fundamental to theirbusiness).Free trials remain the mostpopular product led growthstrategy. Freemium – while muchSource: 2019 OpenView SaaS Metrics Survey, N 639. PLG Companies defined as those leveraging more thanthree of the PLG strategies surveyed.OV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved1818

PRODUCT LED GROWTH BY TARGETCUSTOMER SEGMENT% o f re sp o nde ntsPLGNon-PLGProduct led growth is especiallyprevalent among companiestargeting VSB/SMB customers.52%58%64%75%That said, 1 in 4 companiestargeting large enterprises alsoemploy PLG tactics – PLG is forthe enterprise, too.48%42%36%25%VSBSMBMidmarketSource: 2019 OpenView SaaS Metrics Survey, N 639. PLG Companies defined as those leveraging more thanthree of the 9 PLG strategies surveyed.OV 2019 EXPANSION SAAS BENCHMARKSEnterpriseTa rge t S e gme ntProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved1919

PRODUCT LED BUSINESSES GROW FASTERAT SCALEPLG companies grow slowly in theMe dia n Gro wth Ra tePLGNon-PLG120%very early days, as it takes time tobuild a community of free users andconvert those users to paying100%customers.80%After 10M in ARR, the magic of60%PLG kicks in and these companiescan scale faster. They aren’t as40%limited by their ability to hire,onboard and feed leads to20%enterprise sales reps and they’ve0% 1M 1-2.5M 2.5-10M 10-20M 20-50MSource: 2019 OpenView SaaS Metrics Survey, N 639. PLG Companies defined as those leveraging more thanthree of the 9 PLG strategies surveyed.OV 2019 EXPANSION SAAS BENCHMARKS 50Mbuilt up significant goodwill fromtheir users.ARR S ca leProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved2020

WHAT KEEPS FOUNDERS UPAT NIGHT?OV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenView Advisors, LLC. All Rights Reserved21

DISTRIBUTION OF FOUNDER AGEP erce nta ge o f Re sp o nde ntsThree-quarters of founders werebetween 30-49 years old when47%they founded their company.It takes more reps and time at28%the helm to gain the experiencerequired to lead a software19%company and confidence to6%make the right investments inorder to create shareholderYounger than 3030-3940-4950 or oldervalue.Source: 2019 OpenView SaaS Metrics Survey, N 639.OV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved2222

TOP FOUNDER CONCERNS56%50%37%16%19%21%22%23%We learned that only two thingsreally matter at the end of theday: product execution andGTM execution.26%These were founders’ top twoconcerns regardless ofcompany size with just oneexception (hiring was the #1priority for those with 1-2.5M inARR).Source: 2019 OpenView SaaS Metrics Survey, N 639.OV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved2323

FOUNDER CONCERNS BY COST OF REGIONHigh Cost35%30%Product and GTM executionconcerns persist regardless of33%region, but founders in low cost28%24%25%20%Low Costregions are able to commitmore time towards these issues.19%These founders are less worried15%about keeping the lights on –they’re 32% less concerned10%about fundraising and 27% less5%worried about cash burn.0%FundraisingBurning too much cashSource: 2019 OpenView SaaS Metrics Survey, N 639.Note: High cost regions include Bay Area, Seattle, Denver / Boulder, Austin, New York, Boston, and D.C. Metro area.OV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved2424

GROWTH RATES BY FOUNDER AGEYo Y Gro wth Ra teFounders over 30 years of age137%140%operate companies that performbetter. They may not capture120%headlines, but these founders100%see 65% higher growth and83%80%45% less monthly cash burn than60%their younger peers.40%20%0%Younger than 3030 or olderSource: 2019 OpenView SaaS Metrics Survey, N 639.OV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved2525

GO-TO-MARKET INSIGHTSOV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenView Advisors, LLC. All Rights Reserved26

GROWTH RATE BY COMPANY ARRGro wth Ra te (Annua l)SaaS companies grow rapidly inMedianTop Quartile2018 Medianthe early stages – a typical175%company doubles YoY and a top150%quartile company nearly triples.125%Revenue growth tends to decrease100%as companies approach 10M in75%ARR.50%Growth rates are relatively25%unchanged compared to 20180%Less than 1M 1-2.5M 2.5-10M 10-20M 20-50MMore than 50Mdespite increased fundraising andburn levels (more on that later).ARR S ca leSource: 2019 OpenView SaaS Metrics Survey, N 639.OV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved2727

SALES AND MARKETING SPEND BY ARRS a le s a nd Ma rke ting S p e nd (% o f ARR)Bottom QuartileSales and marketing spend areMedianTop Quartilea SaaS company’s largest areas70%of spend after they hit 2.5M of60%ARR, before that it is R&D.50%40%Sales and marketing spend30%peaks when companies are20%scaling through Series C / D –10%watch out for inefficiency inspend and rising CAC Payback0% 1M 1-2.5M 2.5-10M 10-20M 20-50M 50MARR S ca lewithout correspondingimprovements in growth.Source: 2019 OpenView SaaS Metrics Survey, N 639.OV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved2828

SALES AND MARKETING SPEND BYDOMINANT SALES CHANNELS a le s a nd Ma rke ting S p e nd (% o f ARR)Median sales and marketingBottom QuartileMedianTop Quartile70%spend is highest for companiesprimarily generating revenuethrough inside sales.60%50%Best-in-class companies selling40%primarily through self service30%and freemium can bring sales20%and marketing spend below10%20% of ARR.0%Self serviceFreemiumInside salesField salesIndirectD o mina nt S a le s C h a nne l 1Source: 2019 OpenView SaaS Metrics Survey, N 639.1. Dominant sales channel accounts for 50% of ARR.OV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved2929

DOMINANT SALES CHANNEL1 BYCUSTOMER TYPES a le s C h a nne l Mix (% o f ARR)Inside sales is the most popularsales channel in SaaS and is16%16%16%21%used to reach customers of allsizes, even very small15%22%businesses.32%47%16%12%Make sure sales channels are38%supported by your average deal42%40%32%size (do you make enough topay competitive salesVSBInside salesSMBField salesMidmarketSelf serviceSource: 2019 OpenView SaaS Metrics Survey, N 639.FreemiumEnterpriseIndirectMixedcommissions?) and how yourcustomers prefer to buy.Ta rge t C usto mer Typ e1. Dominant sales channel accounts for 50% of ARR.OV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved3030

MONTHS TO RECOVER CAC (CAC PAYBACK)C AC P a yba ck in Mo nth sCAC payback lengthens when1Top QuartileMedianBottom Quartilecompanies achieve greater ARRscale – watch out for worsening25your go-to-market efficiency as20you grow.15In our opinion, companies arestill under-reporting their true10CAC Payback period. Be sure5your payback is fully loaded(including overhead like rent)0 1-2.5M 2.5-10M 10-20M 20-50MSource: 2019 OpenView SaaS Metrics Survey, N 639. 50MARR S ca leand that it is gross marginaffected.1. Excluded companies 1M ARR because they don’t have enough data for predictable CAC payback.OV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved3131

DISTRIBUTION OF AE QUOTASP erce nt o f Re sp o nde ntsMedian rep quota was between 500k-750k, but there’s26%significant variance acrosscompanies. See next page for22%summary of quota by target18%customer segment.15%13%5% 250k 250k-500k 500k-750kSource: 2019 OpenView SaaS Metrics Survey, N 639.OV 2019 EXPANSION SAAS BENCHMARKS 750k-1M 1M-1.5M 1.5MAE Quo ta sProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved3232

DISTRIBUTION OF AE QUOTAS BY TARGETCUSTOMER SEGMENTTa rge t C usto mer S e gme ntReps’ quotas generally increasewith the size of a company’sVSB54%SMB26%36%11%35%15%7%7%7%target customers.1 in 3 enterprise AEs has aquota in excess of 1M,compared to less than 1 in 10Midmarket19%23%21%21%17%for VSB/SMB reps. Make surethat reps are “paying forEnterprise13%11%22%22%32%themselves” – a quota of 5x OTEis a safe rule of thumb per other 250k 250k-500kSource: 2019 OpenView SaaS Metrics Survey, N 639.OV 2019 EXPANSION SAAS BENCHMARKS 500k-750k 750k-1Mstudies. 1MAE Quo taProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved3333

PRICING INSIGHTSOV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenView Advisors, LLC. All Rights Reserved34

PRIMARY PRICING METRICD istributio n o f Re sp o nde ntsCharging based on users is stillthe primary approach for10%Company sizesoftware companies.16%4%Relative to last year, we’reUsage-basedseeing an increase in thenumber of companies thatSeats or user-based29%Performance-basedcharge based on company size.41%OtherSource: 2019 OpenView SaaS Metrics Survey, N 639.OV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved3535

PRIMARY PRICING METRICS o f twa re C a te go ryInfrastructure /developer softwareAs with 2018, horizontalapplications keep to the course9%34%34%13%9%of user-based pricing paved bySaaS bellwethers like ly, we’ve continued toVerticalapplication19%28%36%observe more openness to15%newer pricing models (usagebased) amongst infrastructureOtherCompany size10%30%Usage-basedSeats or user-based35%10%15%Performance or success-basedsoftware vendors, led by theOthersuccess of AWS.Re sp o nse sSource: 2019 OpenView SaaS Metrics Survey, N 639.OV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved3636

PRICING CHANGES3 in 5 of companies surveyedchanged their pricing last yearYes, multiple timeswith 1 in 5 changing pricing20%Yes, onceNomultiple times.Pricing changes are generally40%extremely impactful to growth,gross margin and profitability –see next slide for more detail.40%Source: 2019 OpenView SaaS Metrics Survey, N 639.OV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved3737

IMPACT OF PRICING CHANGES ON ARRGROWTHD istributio n o f Re sp o nde ntsAmong the companies that1%Decreasechanged pricing, just 1%9%0-9% increase17%10-24% increase25-49% increaseexpected ARR to decrease as aresult.14%50-99% increaseBy contrast, the median impact100% increaseof a pricing change was morethan 25% increase in ARR23%36%growth.Source: 2019 OpenView SaaS Metrics Survey, N 639.OV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved3838

ACV BY TARGET CUSTOMER TYPEThere’s a strong correlationVSB31%45%12%9%between target customer size,sales channel and ACV.SMB11%50%25%7%7%Take a close look at your ACVand target market to understandMidmarket20%47%26%5%whether you’re on track to buildan enduring business (pro tip:Enterprise8%41% 1k 1k-10k40% 10k-50k 50k-250k11%stop selling Enterprise deals for 25k).OtherRe sp o nse sSource: 2019 OpenView SaaS Metrics Survey, N 639.OV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved3939

ACV BY DOMINANT SALES CHANNELD o mina nt S a le s C h a nne l 1Self serviceNo-touch channels like selfservice and freemium generally27%35%Freemium64%17%6%15%14%7%14%start with smaller initial ACVs asindividual users or teams getfamiliar with the product – onceInside salesField salesIndirect39%11%43%31%29% 1k14%40%12% 1-10k 10-50k29% 50-250k15%6%companies get a “foot in thedoor” there can be significantpotential for expansion.24% 250kRe sp o nse sSource: 2019 OpenView SaaS Metrics Survey, N 639.1. Dominant sales channel accounts for 50% of ARR.OV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved4040

ACV BY SOFTWARE TYPES o f twa re C a te go ryInfrastructure /developer softwareAs in prior years, infrastructure /developer software companies6%47%34%13%continue to achieve the highestACV levels – usage-basedHorizontalapplication29%34%29%8%pricing models in particular candrive further ACV expansion.VerticalapplicationOther20%29%32%32%7% 1k25%45%10% 1k-10k 10k-50k 50kRe sp o nse sSource: 2019 OpenView SaaS Metrics Survey, N 639.OV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved4141

FINANCIAL & OPERATINGINSIGHTSOV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenView Advisors, LLC. All Rights Reserved42

PERCENT REVENUE FROM SUBSCRIPTIONBY TARGET CUSTOMER TYPECompanies targeting smallerBottom QuartileMedianTop Quartile100%customers earn a greater shareof their revenue fromsubscriptions.95%90%Companies selling to enterprisecustomers generally layer85%services on top of subscriptions.80%Per research on public SaaScompany valuation, revenue is75%treated equal so long as more70%VSBSMBMidmarketEnterpriseRe sp o nse sthan 80% comes fromsubscriptions.Source: 2019 OpenView SaaS Metrics Survey, N 639OV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved4343

GROSS MARGIN ON SUBSCRIPTIONSGross margin is a key and oftenoverlooked lever in any business11%– more than half of companies19%surveyed have gross margins inexcess of 70%. Best-in-class6%companies across all ARR scales27%see gross margins of at least11%80%.As a reminder, gross margin26% 50% GM50-59% GM60-69% GMSource: 2019 OpenView SaaS Metrics Survey, N 639.OV 2019 EXPANSION SAAS BENCHMARKS70-79% GMshould always include hosting,80-89% GM90% GMas well as any services andcustomer onboarding costs.Proprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved4444

LOGO RETENTION RATESLo go Re te ntio n Ra te s (Annua l)Top tier companies see logoretention rates of at least 85%.11%Be careful of accelerating your6%sales and marketing spend if35%you have a churn problem!Median retention rates do differ21%depending on deal size: 1k: 71% 1-5k: 83%27% 65% retention65-74% retention85-94% retention 95% retention 5k-25k: 90%75-84% retention 25k-100k: 90% 100-250k: 93%Source: 2019 OpenView SaaS Metrics Survey, N 639.OV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved4545

NET DOLLAR RETENTION RATESN e t D o lla r Re te ntio n Ra te s (Annua l)10%About 1 in 3 companiessurveyed reported net dollar11%9%retention over 105% and 1 in10 reported NDR over 125%.9%Net dollar retention tells the15%whole story about what is16%happening within your customerbase and should be tracked atthe cohort level to visualize31% 75%75-84%85-94%95-104%trends over time.105-114%115-124% 125%Source: 2019 OpenView SaaS Metrics Survey, N 639.OV 2019 EXPANSION SAAS BENCHMARKSProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved4646

NET RETENTION BY TARGET CUSTOMERTYPEN e t D o lla r Re te ntio n Ra te s (Annua l)Net retention is considerablyBottom QuartileMedianTop Quartilehigher for companies targeting115%midmarket or enterprise110%companies than for those105%targeting VSB/SMB companies.100%95%Regardless of segment, a90%competitive NDR rate lies85%between 100% and 110%.80%75%VSBSMBSource: 2019 OpenView SaaS Metrics Survey, N 639.OV 2019 EXPANSION SAAS BENCHMARKSMidmarketEnterpriseTa rge t C usto mer Typ eProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved4747

RETENTION RATES VS. GROWTHRe te ntio n Ra te s (Annua l)Avg. Logo RetentionThe ability to expand newcustomers facilitates rapidAvg. NDR120108%companies see 100% net96%94%10085%82%growth. The fastest growing86%dollar retention.80For comparison, median net60dollar retention for public40companies was 107% (at thetime of S-1 filing).200 30% Growth30-100% GrowthSource: 2019 OpenView SaaS Metrics Survey, N 639.OV 2019 EXPANSION SAAS BENCHMARKS 100% GrowthAnnua l Gro wth Ra teProprietary 2019 OpenViewAll RightsReservedProprietary 2019OpenViewAdvisors,Advisors,LLC. AllLLC.RightsReserved4848

RESPONSIBILITES OF CUSTOMER SUCCESSP erce nt o f Re sp o nde ntsLess than 1 in 10 of the80%69%70%73%customer success team – these59%60%companies surveyed lacked ateams are primarily tasked with52%managing retention.50%40%30%Upsell and expansion are less20%common for CS to

of our third annual Expansion SaaS Benchmarks survey. This report was designed specifically to enable operators to compare themselves against their exact peers across the metrics that matter most in a SaaS business. This year's survey was live from May - June 2019. There were 639 respondents ( 70% of participants were CEOs, CFOs, or VPs of