In this episode, CJ Gustafson interviews Lily Yang, CFO of Strava, to delve into the company's business model, growth strategies, and the role of community engagement in driving user retention. They discuss how Strava's business model has evolved as they've moved into diverse activities, demographics, and countries. Lily sheds light on Strava’s growing revenue streams and the impact of brand partnerships in boosting both reach and revenue. She provides insight into the importance of retention for subscription-based B2C businesses, revealing how Strava forecasts for a consumer base marked by variable activity and seasonality. They talk about the conversion rate from free to paid, Strava’s strategy to stay competitive in a crowded digital fitness market, and what’s next for the company. Finally, Lily shares career insights, recounting challenges as a minority in finance, pivotal career-shaping moments, and valuable advice for aspiring finance professionals.

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SPONSORS:

Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today.

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 40,000 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 ✅, head to NetSuite https://netsuite.com/metrics and get the CFO’s Guide to AI and Machine Learning.

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TIMESTAMPS:

(00:00) Preview and Intro

(01:36) Sponsor – Leapfin | Mercury

(03:55) The Evolution of How Strava Makes Money

(06:47) How Strava’s TAM Has Changed as It’s Expanded

(08:36) Strava’s Ideal Customer Profile

(11:12) How Strava Works with Run Clubs

(12:22) The Role of Brand Partnerships

(14:44) B2C Retention

(16:25) Sponsor – NetSuite | Maxio

(18:55) Gamification

(19:59) Active Users and Retention Rates

(24:24) Subscription Forecasting and Variability

(30:16) Forecasting for Free Users

(33:02) Conversion Rates in This Model

(34:40) Strava’s International Reach

(35:43) What’s Next for Strava

(37:12) Staying Competitive in a Saturated Market

(40:27) Navigating Biases as a Minority in Finance

(42:42) Tips for Positive Self-Talk

(44:16) Moments That Have Shaped Lily’s Career

(46:50) Long-Ass Lightning Round: Comfort Zones and Running with Bad News

(49:23) Finance Software Stack

(49:55) Craziest Expense Story