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 RateRule of 40Net Dollar Retention RateCAC Payback Period Gross Margin S&M as a percentage of revenueR&D as a percentage of revenueARR per FTERevenue breakdown by category (Subscription, Gross Transaction Value, Services)Down round from last rounds of funding as a private companyCompounding IPO RatchetDifferent classes of stock and voting rightsOne of the sources of information used for this episode was the Meritech Capital S-1 breakdown which can be read here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

KeyBanc Capital Markets in partnership with Sapphire Ventures recently published their 2024 SaaS Metrics Benchmark report. During today's episode, Dave "CAC" Kellogg and Ray "Growth" Rike dive into this years highlights including:Growth RatesNet and Gross Revenue RetentionRule of 40Go-to-Market Organization RatiosMarketing Strategies and ProductivityHuman Capital EfficiencyValuation Multiples - By Growth RateIf you are a SaaS executive, employee or investor this episode is a great listen!See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Sales Operations function evolves dramatically as a company scales and Meghan Gill, SVP Sales Ops and Sales Development at MongoDB has lived that reality. Meghan started in Marketing at MongoDB as employee number 8 as the first non engineering hire, and then seven years later took over Sales Operations in preparation for their IPO.CAC and Growth discuss the evolution of Sales Ops with Meghan and discuss several key topics including:The career journey from Marketing to Sales OperationsThe evolution of Sales Operations post IPOSales Operations vs Revenue OperationsGTM changes required when converting to Usage-Based PricingCentralized planning to decentralized global planning - an operations perspectiveHearing how the role of Sales Operations evolves from pre IPO to post IPO and continuing to $2B+ directly from a person who has been in the middle of making that journey possible makes for a highly informative conversation and a unique guest centric SaaS Talk with the Metrics Brothers episode!!!See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

CAC and Growth discuss the recent Scaling SaaS from $1M to $20M ARR ICONIQ Growth report that provides a long term view on the performance metrics benchmarks that SaaS companies exhibit at granular stages of growth including $5M, $10M, $15M and $20M ARR.Benchmarks covered include:Enterprise Five Benchmarks (Median and Top Quartile)Growth Plateau Challenges started at $25M ARRNew Logo GrowthOperating Expense TrendsAnnual Contract Value Growth by StageNew ARR vs Expansion ARRARR per FTEBurn MultipleThe ICONIQ Growth "Scaling SaaS from $1M to $20M ARR" Report provides unique insights and perspectives on the benchmarks that define success as measured by both the top quartile and median benchmarks for the 107 private SaaS companies that are included in this research.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Remaining Performance Obligation (RPO) metric has become a more standard metric that public company Wall Street analysts have started to follow closely to help evaluate the bookings growth of recurring revenue companies. CAC and Growth cover the following topics regarding RPO including: Why was the Remaining Performance Obligation createdWhat does the Remaining Performance Obligation (RPO) metric tell investorsHow is RPO calculatedThe difference between RPO and deferred revenueHow multi-year agreements impact both the RPO and Deferred Revenue calculationsIf you are interested in how public company analysts use the RPO metric or are just a student of the SaaS industry - this episode dives deep into an increasingly important SaaS investor metric!See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Discover the critical role customer retention costs play in the SaaS model. The hosts break down essential metrics like the Customer Retention Cost Ratio and Customer Renewal Cost Ratio. They discuss the nuances of measuring customer success and the various factors impacting retention strategies. The conversation delves into the distinction between costs for retention and upselling, highlighting how customer support and marketing efforts can elevate satisfaction. Tune in for insights that could shift your approach to maximizing recurring revenue!

Are headline valuations in B2B SaaS really what they seem? Discover the surprising nuances behind investment announcements as experts discuss the shift from focusing solely on capital raised to highlighting company valuations. Delve into the complexities of stock classes, liquidation preferences, and how these factors can mislead investors. Explore the evolving landscape of valuations, tracing trends back to the unicorn era, and learn why real purchase prices often surpass reported market cap figures. It's a must-listen for SaaS leaders!

Contracted Annual Recurring Revenue (CARR) and Annual Recurring Revenue (ARR) are commonly used terms in the SaaS and Cloud Industry but are not standardized leading to inconsistent calculation. In fact, they were the first two metrics the SaaS Metrics Standards Board published standards upon.Dave and Ray discuss the current definitions, calculations and how Usage-Based Pricing is impacting the historic ARR reporting model.During today's episode CAC and Growth cover the following topics:Contracted Annual Recurring Revenue (CARR) - Definition and CalculationAnnual Recurring Revenue (ARR) - Definition and CalculationUsage-Based Pricing and impact on revenue reportingIntroduction of Recurring and Re-ocurring revenueReporting variable revenue from Usage-Based Pricing modelsWith ARR not being a FASB / GAAP Revenue reporting standard - the opportunity and challenges for having multiple calculation and reporting models is easy to identify - but hard to rectify.If you are using, considering using or do not use Usage-Based Pricing this conversation and episode is a great listen.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

In this insightful discussion, Dave Kellogg, a SaaS investment guru, and Ray Rike, a growth strategies expert, unravel the vital concept of Free Cash Flow (FCF). They delve into how FCF serves as a benchmark for measuring company performance and its crucial integration with the Rule of 40. The duo breaks down various calculation methods, exploring the impact of capitalizing sales commissions and R&D. FCF emerges as a pivotal metric not just for B2B SaaS firms, but for investors navigating a maturing industry.

Dive into the latest insights from the 2024 Cloud 100 report, which reveals a jaw-dropping aggregate valuation of $820 billion and a scorching growth rate of 70%, driven largely by AI companies. Discover how the top 10 firms represent nearly 30% of total enterprise value and what this means for public offerings. The hosts discuss valuation trends, the concept of 'Centaur' metrics, and the contrasting fates of large versus small SaaS businesses, all while providing a light-hearted twist on their friendship.