AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
How to Calculate NRR
The CAC ratio is an ARR metric, not a revenue metric. Our investors wanted, they were okay with a little bit higher CAC, because we were growing so fast but they wanted to maximize and optimize NRR. So I would say do both. If you got the 100k 200k 300k deal, I think it's okay to see you bought 100 units of ARR in year one and then show a great expansion. And that would be my worry is that you'll do both. It's no longer a contract expansion. Just say we have a bunch of data that says your average customer comes in at 100 and just I'll make it a very simple example. Then