Stripe is sufficiently large that when we consider its growth we have to weigh it against the overall growth in the payment space more generally.
Major growth pointsIn its annual missive, Stripe noted that it crossed the $1 trillion total payment volume metric in 2023, a figure that is large, and round, if imprecise.
Certainly the threshold is notable, but when paired with recent growth figures becomes all the more impressive.
Stripe said that in 2023 its payment volume rose 25%.
Any company processing that much total payment volume through Stripe could build their own in-house stack, or pursue a more DIY option.
In enterprise software-as-a-service (SaaS), usage-based pricing, a pricing model in which customers are charged only when they use a product or service, is gaining ground.
According to a report from VC firm OpenView, ~60% of SaaS businesses offer some form of usage-based pricing today.
But while usage-based pricing has its advantages, it can be tougher to keep tabs on from a billing perspective.
There, he ran into blockers collecting usage-based pricing data from different providers and infrastructure and aggregating and analyzing this usage together.
“Competitors in the usage-based space only cater to the revenue teams with a closed-source, billing-first approach,” he said.
The “State of Subscription Apps” report offers a bird’s-eye view into the subscription app universe, as RevenueCat has nearly 30,000 apps using its platform’s tools to manage their monetization.
Outside of Apple and Google, that makes RevenueCat the largest collection of subscription app developers on one platform.
For instance, 59% of the apps that reach $1,000 will go on to reach $2,500 and 60% of the apps that reach $2,500 will make it to $5,000.
The report highlights other aspects of the race to subscription app monetization, as well, including that North America-based apps have 4x the monetization of the global average.
The larger report gets into more specifics that will be useful to subscription app developers, including details about subscription packages, pricing, trial strategies, conversion, refund rates, retention, growth, and more.
At the low end of this range, $31 billion, though Reddit would be worth $4.93 billion based on an expected 158.98 million shares outstanding.
With $804.0 million in 2023 revenue, Reddit is on track to trade for a multiple of 6.9x to 8.0x its revenue, depending on the valuation estimate you want to use.
Reddit’s game plan for AI is one good reason why it’s pricing its shares closer to Meta than Snap.
Reddit data constantly grows and regenerates as users come and interact with their communities and each other.
Investors might consider Reddit a side-bet on AI itself, even if the company’s core business isn’t creating AI models.
Profitable car rental service Turo is still ready for an IPO, but its growth cratered in 2023Turo, the venture-backed, peer-to-peer car rental service reported its fourth-quarter and full-year financial performance this week in an updated IPO filing.
The company has put the capital to good use, posting quick revenue growth since 2019, positive operating income since 2021 and net profit since 2022.
In 2021 Turo’s growth rebounded from 2020’s pandemic-driven woes impressively, rising 213% that year to $469 million.
However, triple-digit growth was short-lived at the car rental company, which saw its revenue growth slow to 59% in 2022 when it recorded $746.6 million worth of total revenue.
TechCrunch calculates that its Q3 2022 to Q3 2023 growth rate was 13.6%, while its Q4 to Q4 growth over the same time frame was a slightly sharper 14.3%.
That’s impressive revenue growth no matter what time period we’re talking about — but especially these days.
Those prior disclosures allow us to frame Databricks’ recent growth cleanly.
Partially fueled by the rapid ascent of Databricks SQL, Databricks’ growth rate of more than 50% makes it a one-off company in enterprise software growth terms among companies of its size.
Among public software companies tracked by the Bessemer Venture Partners’ Cloud Index, the fastest growing public software company today is SentinelOne, which grew at 42% in its most recently reported quarter.
That presumes, of course, that its growth rate continues to increase and doesn’t decelerate too much further.
TikTok announced today that its revamped creator fund has increased total creator revenue by over 250% within the last six months.
The company says the fund, which launched a year ago and eventually replaced TikTok’s original $1 billion Creator Fund, is exiting beta in the coming weeks.
Since rolling out longer videos, TikTok says users are spending 50% of their time watching longer content, while viewership of longer videos has increased nearly 40% over the last six months.
When TikTok first launched the revamped fund, it estimated that creators would be able to make more than 20 times what they were previously earning on TikTok.
TikTok’s new creator fund seeks to appease creators and encourage them to post their longer videos on TikTok, instead of just YouTube.
During Target’s investor event on Tuesday, the retail giant announced it is launching a paid membership program, Target Circle 360, on April 7 to compete with rivals Amazon and Walmart.
Target Circle 360 acts as the paid version of its free loyalty program Target Circle, which has existed since 2019.
Additionally, it’s renaming Target RedCard credit and debit cards to Target Circle, which will now give customers an extra 5% off purchases.
However, if you have a Target Circle credit card, it will still cost $49.
Walmart also sees success from its paid membership, Walmart+, which debuted in 2020 for $98/year.
As remote work becomes increasingly prevalent, organizations globally are adapting, especially regarding onboarding procedures for new employees and navigating cross-border payment complexities.
RemotePass, one such business out of the UAE, has raised $5.5 million in Series A funding led by New York-based 212 VC.
CEO Kamal Reggad and Karim Nadi founded RemotePass in late 2020 to allow businesses to onboard, manage and pay their talent base in countries where they lack local legal presence.
Several companies are actively facilitating remote work and aiding employees in receiving payments from employers.
“Addressing today’s workforce challenges like talent mobility and remote work, RemotePass stands out as a key enabler.
If Reddit prices too high out the gate, it loses out on potential buyer interest and could trade down from its IPO valuation instead of building momentum.
Reddit’s most recent primary round in 2021 raised $410 million at a $10 billion valuation from investors, including Fidelity, Quiet Capital and Montauk Ventures, among others.
The market has obviously changed since then, and going out at that $10 billion valuation wouldn’t be smart.
What happens nextThe $5 billion valuation that Reddit may pursue is not risk-free.
Reddit offering shares to its top users is likely a ploy to avoid the stock entering meme-trading territory, Martin said.
