From Order to Invoicing and Beyond: Profitero Streamlines SaaS Financial Operations

by Bryan Schuler

Everywhere you look, eCommerce is booming—loudly. 64 cents of every dollar spent in retail stores are now influenced by digital interactions. Yet, for all the growth—and all the tools available to retailers and brands for managing the digital shelf—there are precious few ways to generate the strategic insights that drive decisive, successful actions.

Founded in 2012, Profitero is filling that gap as a provider of realtime eCommerce analytics and the only SaaS provider that will capture and analyze both a brand’s sales and share of sales in its Amazon category, all in one platform.

SaaS Financial Operations Streamlines Finances

For years, Profitero’s financial operations were managed with spreadsheets and accounting software. As is the case with many SaaS businesses, spreadsheets had become a fill-the-gap financial tool that the company eventually would outgrow. When Erik Lepke joined Profitero as vice president of Finance in 2017, Profitero was beginning to feel the pains and the need for something more.

“When I joined, we were around $6 million in annual recurring revenue (ARR). The spreadsheets were still feasible, but I quickly realized they weren’t going to be sustainable as we continued to grow,” he said. Tasked with managing the financial aspects of the growing business, Lepke began looking at enterprise resource planning (ERP) systems.

“We were ready to go all in, and it was costly, but we figured it would be our last investment in a financial system,” Lepke said. “Thankfully, we discovered SaaSOptics instead.”

Choosing SaaSOptics and QuickBooks provided all the management, metrics and analytics Profitero needed, at a cost that made sense. SaaSOptics integrates and automatically syncs with QuickBooks to provide everything Profitero needs for GAAP-compliant revenue recognition, subscription management and analytics. “SaaSOptics is the main reason we landed with a combination of two solutions versus a large ERP,” said Lepke. “SaaSOptics is very SaaS-specific and tailored to what our business needs. The other systems we looked at didn’t offer anything SaaSOptics couldn’t do and came with a higher price.”

Simplified Contract Add-Ons and Upgrades

SaaSOptics closes the gap that often exists between sales, finance and customer success teams with a Salesforce integration that gives Profitero’s sales team flexibility in the deals they sell and provides a single source of truth for all customer orders, contracts, transactions, revenues, invoices, payments and renewals—accessible by all Salesforce users.

Simplified Contract Add-Ons and UpgradesContract changes, which are common among Profitero customers, haven’t always been easy to manage. Executing contract changes before SaaSOptics required Lepke’s team to manually update spreadsheets. Ensuring that calculations were up-to-date was time consuming, error prone and put pressure on the team to constantly update the spreadsheets. SaaSOptics simplifies complex order changes and saves time by allowing Profitero’s sales team to initiate contract change requests directly in Salesforce. “With the Salesforce integration, changing or upgrading contracts is seamless because every change we track in Salesforce is automatically updated in SaaSOptics,” Lepke said.

“I’m 100 percent confident that we capture all changes, and the metrics we provide to our board and investors are complete and accurate.” The Salesforce integration has eliminated manual entry, freeing up Lepke’s team to focus on other important tasks. “Entering a new contract used to be a manual process of looking up the contract in Salesforce, gathering all the information and inputting it into the spreadsheet so we could track the revenue,” Lepke said. “Today, we can literally see new contracts come into SaaSOptics directly from Salesforce and just click ‘process.’ This saves several hours of our team’s time every week.”

Seamless Invoicing with Cross-Team Visibility

With SaaSOptics, customers, contracts, transactions, revenues and invoices are automatically created from Salesforce data. When Profitero changed its commission plan, directly tying commission to invoicing, the sales reps gained instant visibility into what has or hasn’t been invoiced. “Without the Salesforce integration, getting that information to the sales reps would have been manual and cumbersome,” Lepke said. “SaaSOptics solves that problem quickly and easily. Our reps can log into Salesforce and instantly know when they’re getting paid based on the invoice status.”

The SaaSOptics Platform

Easy, Fast Access to Accurate Metrics

Lepke and his team now have quick, easy access to metrics that help run Profitero’s day-to-day financial operations like ARR growth, customer retention, upsell and churn rates. They also benefit from new metrics that help make smart decisions around future growth. For example, cohort analysis groups customers to help the team understand how churn and retention rates are changing over time.

“We now have a good idea of what to expect in terms of upsell revenue a year or two years after a customer signs up and when they typically upgrade,” Lepke said. “This has influenced decisions on when we reach out to customers to upsell and helped us take a strategic approach rather than assuming or waiting for the customer to come to us.”

Knowing metrics are accurate also provides the peace of mind Lepke needs to confidently navigate audits and report to the board. “SaaSOptics saves a lot of time that we would have spent calculating metrics but most importantly, we know they are 100 percent accurate.”

Ready for Future Growth

As part of a rapidly growing business, it was important for Lepke to find a solution that would scale over time and allow his team to optimize financial operations at every stage. “SaaSOptics has everything we need today and can scale as Profitero evolves,” he said. When asked what advice he would give to other SaaS businesses, Lepke said: “It’s critical to find a system that will scale. Even if you think you’re investing too early, it’s always better to find the right system in the early stages of growth because spreadsheets won’t work long-term and won’t provide the insights you need to grow the business.”

Profitero Case Study

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