The Evolution of Vertical SaaS and Its Impact on Customer Retention

ServiceTitan, a vertical SaaS company for the trades recently filed their S-1 and went public on December 12, 2024. Dave "CAC" Kellogg and Ray "Growth" Rike discuss many details regarding the S-1 including the basic enterprise value creating performance metrics and some very interesting aspects of the IPO structure.

During this episode, Dave and Ray discuss several aspects of the S-1 and IPO measured against industry benchmarks including:

• ARR Growth Rate
• Rule of 40
• Net Dollar Retention Rate
• CAC Payback Period
• Gross Margin
• S&M as a percentage of revenue
• R&D as a percentage of revenue
• ARR per FTE
• Revenue breakdown by category (Subscription, Gross Transaction Value, Services)
• Down round from last rounds of funding as a private company
• Compounding IPO Ratchet
• Different classes of stock and voting rights

One of the sources of information used for this episode was the Meritech Capital S-1 breakdown which can be read here.

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