Blue Horizon’s reading list is a curated collection of articles for SaaS founders and management teams. We are entrepreneurs and operators who have lived through the process of founding and scaling software companies. Here are the articles and resources we found useful this week.

Revenue Per Employee Benchmarks for Private SaaS Companies
by SaaS Capital

Revenue per employee grows as company size increases, clearly demonstrating the scalability of the SaaS business model…Bootstrapped companies tend to show higher revenue per employee than equity-backed companies although the delta does narrow as companies exceed $5 million in ARR…Equity-backed companies with $1 million to $3 million in ARR have a median ARR per employee of $66,667 while bootstrapped companies of the same size show a median ARR per full-time equivalent (FTE) of $100,000.

Kellblog Predictions for 2022
by Dave Kellogg

– Covid goes from pandemic to endemic
– Web3 hype peaks
– Disruptors get disrupted
– Venture capital continues to flow
– The metaverse remains meta

Predictable Revenue Forecasting is Possible with Usage-Based Pricing
by OpenView Partners

Without question, the biggest predictor of revenue realization sits within the sales forecast. The more accurate the sales forecast is for contract bookings, the greater the confidence that Finance will have in using these numbers in their predictability models. A lot of time, energy and RevOps budget is being put into sales forecasting accuracy, so one might expect that revenue realization accuracy will be improved in time.

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Blue Horizon acquires and invests in profitable software businesses with stable recurring revenue streams. The Blue Horizon platform combines long-term capital and industry expertise with an operating model that enables businesses and their leaders to focus on growth and profitability.