The Metrics Brothers (fka SaaS Talk)

Dive into the fascinating insights from Bessemer's State of AI 2025 Report! Discover the key differences between AI Supernovas and Shooting Stars, and why Vertical AI companies could outshine their horizontal counterparts. The discussion emphasizes the need for structured Proof of Concept programs in customer acquisition. Get ready for 2026 predictions: a new dominant browser interface, generative video breakthroughs, and the rise of an AI-native social media giant. Plus, learn about the crucial role of evaluations and data lineage in product development!

Aventis Advisors recently published a report on AI Valuations which covered the number of investments, size of those investments, median valuations and multiples on AI investments over a 15 year period from 2010 through first half of 2025!Dave "CAC" Kellogg and Ray "Growth" Rike discuss some of the highlights including:AI industry categories includedNumber of financing rounds (2010 - 1H2025)Total Capital Raised (2010 - 1H2025)Median sizes by round (2010 - 1H2025)Valuations (2010 - 1H2025)Valuation multiples (2010 - 1H2025)Large Language Model valuations vs AI Coding Assistant ValuationsSummary of the AI funding environmentYou can follow along to Dave and Ray's conversation by clicking the below link to the reportAventis AI Valuation Multiples ReportSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Explore the distinct financial characteristics of AI products versus traditional SaaS and how they impact gross margins. Discover the nuances of Cost of Goods Sold for both AI and SaaS, and learn about the classification of expenses in this evolving landscape. The discussion delves into the crucial role of operational expenses and the significant investments required to develop competitive AI products. Gain insights on adjusting pricing strategies and the venture capital dynamics shaping the future of AI in SaaS.

AI is driving an unprecedented demand for data centers, and the Metrics Brothers break down essential metrics for understanding this need. They explore FLOPS, power consumption, and how the first multi-GW data center, Prometheus, is setting new standards. Comparisons to Manhattan reveal the immense scale of these facilities. Discussions on energy requirements highlight the staggering projections for future demands and operational efficiency. Tune in as they navigate the implications of these trends on AI infrastructure!

The discussion kicks off with the shift from years to months for reaching $100M ARR in SaaS, thanks to the rise of AI. Examples of hypergrowth companies highlight how they compare to traditional favorites like Zoom and Slack. A deep dive reveals when the clock for growth starts ticking and contrasts Product-Led Growth with newcomers. A cautionary tale emerges about an AI company that couldn't maintain its explosive trajectory, spurring thoughts on sustainability in this fast-paced market. It's a must-listen for anyone curious about the future of growth metrics!

The podcast dives into Google's recent $2.4 billion acquisition of Windsurf's top talent, shedding light on the innovative reverse acqui-hire model. The hosts dissect the evolution of acquisition strategies in tech, contrasting traditional models with this new approach. They explore the complexities of failed deals, like the $3 billion attempt by OpenAI, and discuss the implications for employees and the broader startup ecosystem. The episode also touches on the financial dynamics of talent acquisition and the regulatory landscape affecting AI transactions.

This discussion dives into the transformative world of AI metrics and their growing importance in the software industry. Key topics include Daily Active Users versus Monthly Active Users and the complexity of tokenization. The hosts reminisce about early internet metrics like hits and page views, illustrating how measurement has evolved. They also introduce Occam's Razor, highlighting the value of simplicity in metric selection. Ultimately, the episode balances humor and insightful analysis, making sense of the dynamic landscape of AI.

Figma's recent S-1 filing reveals impressive metrics like a Net Revenue Retention Rate of 132% and a Rule of 40 score of 79, outshining Palantir. The hosts delve into Figma's strategic shift to appeal to a broader audience beyond just designers. They dissect Adobe's failed $20 billion acquisition attempt, analyzing the benefits of Figma staying independent. Additionally, financial performance insights project Figma's valuation potential between $6 billion and $75 billion, exploring the influence of investors as they approach an IPO.

The hosts dive into the latest ICONIQ report, shedding light on how AI is reshaping go-to-market strategies. They discuss trends in funnel conversion rates, revealing advantages for AI-native companies. The challenges of cost per opportunity metrics for smaller firms are highlighted, along with the dynamics of late customer renewals. Insightful contrasts between AI and legacy firms showcase shifts in headcount allocation and sales productivity. Overall, this discussion is a treasure trove for GTM leaders navigating the evolving landscape.

Dive into the debate around the evolving definition of Annual Recurring Revenue (ARR) in the SaaS world. Explore how variable pricing models, like usage-based pricing, complicate revenue reporting. The hosts share insights from industry influencers and their experiences, discussing how these changes impact financial forecasting and investor perception. Uncover strategic pricing models that align business growth with revenue metrics while navigating the complexities of software pricing. It's a thought-provoking look at whether ARR is truly 'dead' or just transforming.