Software-as-a-Service (SaaS) companies sell software over the Internet, with customers paying a subscription fee to access it – typically monthly or yearly 💻

You probably use many SaaS products, from Netflix to Spotify to even Bloom!

Before SaaS was invented in the 2000s, people used to make a single payment to download a piece of software and own it forever 👨🏻‍💻

But because of advancements in cloud computing technology, which made it cheaper and easier to build software, the SaaS model gained a lot of popularity starting in the 2000s ☁️

For companies, the SaaS model provides a consistent revenue stream, making financial planning more predictable than when doing one-off sales 📈

For customers, the SaaS model can be cost effective and give them easy access without the hassle of installation or maintenance. 🎬

Just think about how easy it is to use Netflix or Disney+! 🎬

The convenience and efficiency of SaaS has led to widespread adoption across various industries including healthcare, streaming, news, financial education and more! 🌐

Now, the vast majority of software companies have SaaS as at least part of their business model, so by learning about SaaS you’ll develop an edge on evaluating a lot of software companies.

Next, we’ll learn about some SaaS-specific key metrics to help you evaluate SaaS companies! 😎