In this episode, CJ is joined by Jeff Cooper, the CFO of Guidewire, a publicly traded vertical software company serving the insurance industry. Jeff explains the strategic advantage Guidewire has in owning the control point within a customer's tech infrastructure and how they achieved this. He sheds light on the challenges and benefits of Guidewire's industry-specific business model, including long sales cycles, non-standard fiscal years, and the risks of burning through their market. He also discusses ARR as the most important metric, how he decides on the metrics he reports on, and how to think about the value of professional services within your valuation and value proposition.
If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.
—
SPONSORS:
Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.
Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.
Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.
NetSuite provides financial software for all your business needs. More than 37,000 thousand companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅ NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.
—
FOLLOW US ON X:
@cjgustafson222 (CJ)
—
TIMESTAMPS:(00:00) Preview and Intro
(01:57) Sponsor - Maxio | Mercury
(04:20) How Guidewire Monetizes Its Business
(08:48) Guidewire’s Strategic High Ground and How They Earned It
(13:53) The Benefits of Owning the Control Point in a Customer's Tech Stack
(16:09) Guidewire’s Long Deal Cycles and Sales Capacity Model
(18:47) Sponsor - NetSuite
(20:09) Navigating Big Deals, Long Sales Cycles, and Seasonality
(22:33) Guiding to ARR
(24:38) The Pros and Cons of Having Fiscal Year End in July
(28:27) Concerns Over Burning Through Your Market
(31:39) Professional Services: In-house Versus Outsourcing
(36:11) The Nature of a Good Partner Ecosystem
(38:44) Communicating the Most Important Metrics
(42:03) Long-ass Lightning Round: One of Jeff’s Biggest Metric Mistakes
(44:33) The Advice Jeff Would Give His Younger Self
(45:53) Jeff’s Finance Software Stack
Get full access to Mostly metrics at
www.mostlymetrics.com/subscribe
Run the Numbers