AI
Last Wednesday I had the pleasure of sitting down for a 50-minute chat with SaaStr founder Jason Lemkin as part of their Workshop Wednesdays program. Our ostensible topic was What Really Matters in SaaS in 2025, but we ended up having a wide ranging and fast-paced conversation about many things,
Churn
The other day I was looking at an ARR bridge [1] with a young finance ace. He made a few comments and concluded with, “and net revenue retention (NRR) is thus 112%, not bad.” I thought, “Wait, stop! You can’t calculate NRR from an ARR bridge [2].” It’s
Churn
The SaaStr Annual conference was delayed this year, but Jason & crew know that the show must go on. So this year's event has been rechristened SaaStr Annual @ Home and is being held in virtual, online format on September 2nd and 3rd. The team at SaaStr have assembled
Churn
In looking at this issue across several companies, I've noticed a disturbing trend / missed opportunity in how many SaaS companies classify the reason for customer churn. Roughly speaking, if companies were hospitals, they'd too frequently be reporting the cause of death as "stopped breathing."
Churn
Enterprise SaaS has drifted to a model where many, if not most, companies do multi-year contracts on annual payment terms. How did we get here? * Most enterprise SaaS products are high-consideration purchases. Buyers typically perform a thorough evaluation process before purchasing and are quite sure that the software will meet
Churn
Since Customer Success is (sadly, perhaps) still a relatively new discipline in enterprise software companies, I'd say the whole field is evolving quickly, so it's important to keep up with the changes
Churn
While I've blogged about this presentation before, I only recently stumbled into this full-length video of this very popular session -- a 30-minute blaze through some subtle SaaS basics. Enjoy! I look forward to seeing everyone again at SaaStr Annual 2019.
Churn
Most of the thinking, definitions, and formulas regarding SaaS unit economics is based on assumptions that no longer reflect the reality of the enterprise SaaS environment. For example, thinking in terms of MRR (monthly recurring revenue) is outdated because most enterprise SaaS companies run on annual contracts and thus we
Churn
This post won't save your life, or your company. But it might save you a few precious hours at 2:00 AM if you're working on your company's SaaS metrics and can't foot your quarterly and annual churn rates while preparing a
CAC
My ears always perk up when I hear someone say "net new ARR" -- because I'm trying to figure out which, of typically two, ways they are using the term: * To mean ARR from net new customers, in which case, I don't know why
Churn
I was chatting with a fellow SaaS executive the other day and the conversation turned to churn and renewal rates. I asked how he calculated them and he said: Well, we take every customer who was also a customer 12 months ago and then add up their ARR 12 months
Churn
**** Please note that this post has been superseded by A Fresh Look at How to Measure SaaS Churn Rates. I'm leaving it posted to protect in-bound links only and to provide a referral to my latest material on this subject. **** While I've already done a comprehensive