Shifting from SaaS growth to profitability with Zandra Moore @Panintelligence

saas.unbound is a podcast for and about founders who are working on scaling inspiring products that people love, brought to you by https://saas.group/, a serial acquirer of B2B SaaS companies.

In episode #42, Anna Nadeina talks with Zandra, CEO & Co-Founder at Panintelligence, a business intelligence and analytics platform.

Background and Inception of Panintelligence

Zandra Moore hails from Leeds in the north of England, where she was exposed to technology from a young age, thanks to her mother’s pioneering role in the tech sector. This early exposure inspired Zandra to pursue a career in technology, leading her to work with various startups in software development and sales. However, after becoming a mother, she faced challenges in balancing her career with family life. This prompted her to start her own consulting company, where she helped early-stage software businesses find their market fit.

During her consulting journey, Zandra met her future co-founder, who was developing what would become Panintelligence. Their collaboration led to a management buyout, marking the beginning of their shared vision to create a business intelligence and analytics platform. Zandra’s experience with the challenges faced by software companies laid the groundwork for addressing a critical issue: the accessibility of data locked away in various software environments.

Identifying and Solving Problems in SaaS

The early SaaS companies Zandra worked with were solving the problem of enabling remote work. However, this innovation led to a new challenge: data accessibility. As businesses transitioned to paperless, digital environments, the data became increasingly difficult for teams to access and report on. Recognizing this growing issue, Zandra and her co-founder developed a data visualization tool that allowed businesses to query their data without moving it, thus addressing a significant pain point in the market.

Transitioning to Monthly Recurring Revenue

One of the pivotal moments in Panintelligence’s journey was the decision to shift from annual licenses to a monthly recurring revenue (MRR) model. This transition was crucial for creating a scalable business model. Although they had initially bootstrapped the company with some family and friends’ funding, moving to a subscription-based model required additional capital. This change was essential for long-term growth and sustainability, especially as the market dynamics shifted towards profitability and capital efficiency.

Refining the Ideal Customer Profile (ICP)

As the business grew, Zandra realized the importance of refining their Ideal Customer Profile (ICP). They started by leveraging their reseller network. However, Zandra noted that selling through a channel posed challenges, such as a lack of direct customer relationships, leading to potential churn. Over time, they adapted their ICP to focus on software vendors with sustainable business models, moving from large enterprises to early-stage companies poised for growth.

The Shift Towards Profitability

The SaaS landscape has undergone a significant transformation from a growth-at-all-costs mentality to a focus on profitability. Zandra highlighted that many SaaS vendors are now scrutinizing their spending and seeking capital-efficient growth strategies. This shift has led to a greater emphasis on metrics such as net revenue retention and customer acquisition costs, as businesses strive to balance growth with sustainable operations.

Navigating Strategic Partnerships

Zandra’s experience with partnerships has been both enlightening and challenging. While partnerships can provide valuable growth opportunities, they often require significant investment and effort to manage. Zandra advises that successful partnerships demand a deep understanding of the partner’s sales capabilities and alignment on strategic goals. Her success with AWS illustrates the importance of dedicated resources in building and maintaining these relationships.

Key Metrics to Track in SaaS

As the SaaS industry evolves, so do the metrics that founders need to track. Initially, the focus was on growth metrics such as Annual Recurring Revenue (ARR) and customer acquisition costs. However, as the landscape shifted, Zandra noted the increasing importance of metrics related to retention and profitability. Founders must now balance growth with sustainable practices, ensuring that their customer acquisition strategies yield profitable returns.

Trends and Shifts in the SaaS Market

With the ongoing changes in the market, Zandra emphasizes the need for SaaS companies to adapt to new realities. The recent focus on profitability necessitates a reevaluation of team structures, with an emphasis on smaller, more efficient teams. This shift not only impacts operational costs but also influences company culture and the types of talent that are most valuable in the evolving SaaS landscape.

Challenges Faced by Women in the SaaS Industry

As a female founder, Zandra is acutely aware of the challenges women face in the tech industry. Despite the increasing number of women starting businesses, funding for female founders has been declining. Zandra highlights the systemic biases that persist and the need for initiatives that support women in entrepreneurship. By creating networks and providing resources, the industry can better empower female founders to succeed.

Building Strategic Relationships and Leveraging Networks

Zandra’s commitment to supporting women in tech extends beyond her business. She actively participates in initiatives that provide mentorship and resources to female founders. By fostering community and collaboration, Zandra aims to create a more inclusive environment for women in the SaaS industry. Her belief that “you can’t be what you can’t see” underscores the necessity of representation and support for aspiring female entrepreneurs.

Conclusion: A Path Forward for SaaS Founders

Zandra’s journey with Panintelligence serves as a powerful example of the challenges and opportunities within the SaaS industry. As the market shifts towards profitability, founders must adapt their strategies, refine their customer profiles, and cultivate meaningful partnerships. Moreover, the need for diversity and inclusion in tech remains paramount, as empowering women in entrepreneurship will ultimately lead to a more innovative and resilient industry.