Metrics
It’s a frothy time and during such times people can develop a tendency to get sloppy about their numbers. The first sign of froth is when people routinely discuss company size using market capitalization instead of revenue. This happened constantly during Bubble 1.0 and started again several years
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
Cloud
I love metrics. I live for metrics. Every week and every quarter I drown my team in metrics reviews. Why? Because metrics are the instrumentation -- the flight panel -- of our business. Good metrics provide clear insights. They cut through politics, spin, and haze. They spark amazing debates. They
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**** Please note that this post has been superseded by A Fresh Look at How to Measure SaaS Churn Rates.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
Cloud
Chatting with some SaaS buddies the other day, we ran into a fun -- and fairly subtle -- SaaS metrics question. It went something like this: VP of Sales: "-- Wait a minute, our ACD on new business is 2.0 years. If customers are renewing for shorter terms
Cloud
I'm a big fan of software-as-a-service (SaaS) metrics. I've authored very deep posts on SaaS renewals rates and customer acquisition costs. I also routinely point readers to other great posts on the topic, including: * David Skok's excellent posts on SaaS metrics * Bessemer's
Cloud
One thing that amazes me is when I hear people talk about how they analyze churn in a cloud, software as a service (SaaS), or other recurring revenue business. You hear things like: * "17% of our churn comes from emerging small business (ESB) segment, which is normal because small
Cloud
I'm pretty busy this week so I was hoping not to dive into the Box S-1, but David Cummings' excellent summary served only to whet, as opposed to satiate, my appetite. Perhaps it was the $168M FY14 operating loss. Maybe it was the $380M in financing raised
Enterprise
The software-as-a-service (SaaS) space is full of seemingly simple metrics that can quickly slip through your fingers when you try to grasp them. For example, see Measuring SaaS Renewals Rates: Way More Than Meets the Eye for a two-thousand-word post examining the many possible answers to the seemingly simple question,
