SaaS Talk™ with the Metrics Brothers

Metrics brothers, Dave and Ray, discuss the top 5 crucial metrics for Chief Revenue Officers in 2024, including ARR, pipeline performance, net revenue retention, CAC ratio, and CLTV:CAC ratio. They emphasize the importance of these metrics for revenue growth across the customer lifecycle and distinguishing CROs from SVP/VP Sales. The episode provides insights into strategic decision-making and driving revenue growth for companies.

Rule of 40 has been the standard metric B2B SaaS investors and operators have used to measure balanced growth...will the Rule of 40 be surpassed by the new Rule of X recently created by Bessemer Ventures? Join Dave "CAC" Kellogg and Ray "Growth" Rike as they discuss the details about the Rule of X including:Foundational calculation formula for the Rule of XHow to find the "Growth Weighted" M in the formulaWhat is a good "Rule of X" scoreThe Rule of 40 has been around for over a decade - but it was missing one key variable....which is more important growth or profitability? Beyond that, if one variable is more important what are the respective weights of Growth and Profit?CAC and Growth have a little fun while diving deep into the details behind the Rule of X and the Rule of 40.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How the Enterprise Value of a SaaS company impacted by growth rate is the topic of today's conversation with Dave "CAC" Kellogg and Ray "Growth" Rike - the result is a new metric named "ERG" - the Enterprise Value to Revenue to Growth Rate Multiple.During this episode, Dave and Ray highlight several leading public, B2B Cloud companies and how their Enterprise Value to Revenue multiples are impacted when the growth rate is factored in. With a public Cloud/SaaS company median growth rate of 21%, the median Enterprise Value to Revenue multiple of 6.1x and a median ERG of .31 - what does that mean when the ERG is calculated for public Cloud companies such as Workday, Twilio, Domo, ZoomInfo and Hubspot?If you are interested in how growth rate impacts enterprise value in a B2B Cloud company - 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.

Dave "CAC" Kellogg and Ray "Growth" Rike go out on a limb and share their predictions on the Top 5 SaaS Metrics in 2024 - some are old friends and two are brand new for 2024!!!2023 was a year focused on efficient growth, extending cash runways and making progress towards profitability. Simultaneously, certain metrics became more important in correlation to enterprise value to revenue multiples - including the re-emergence of the Rule of 40 being critical to company valuations. Which metrics are Dave and Ray predicting as the Top Five for 2024:Rule of X - a growth-weighted Rule of 40ARR/FTE - the ultimate overall productivity metric for B2B SaaS companiesGRR & NRR - Why the "&" is so important to measuring retention & expansionCAC Payback Period and CAC Ratio - The GTM efficiency metric combinationERG - a growth-weighted enterprise value to revenue growth ratioThe Metrics Brothers focused on the "SaaS Metrics" predictions for this episode - but if you would like to see the more holistic 2024 predictions - take a look at Dave's @kellblog post at: https://kellblog.com/2024/01/02/kellblog-predictions-for-2024/Happy New Year to all and here is to an improving B2B SaaS environment with a balanced approach to growth and profitability!!!See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Dave "CAC" Kellogg and Ray "Growth" Rike discuss the long standing, industry standard SaaS Metrics Benchmark report from KeyBanc Capital Markets, which was released in December, 2023.If you are a long-time SaaS veteran or new to the SaaS industry - this report has been the de facto SaaS Metrics benchmarking report for 14 years. This year's report includes a total population of 106 companies, and often comes up short in comparison to previous year's report. The small population makes segmenting the benchmarks by company size or ACV much very difficult - and benchmarks that are relevant to company size and ACV is critical in making them useful.We encourage our listeners to download the report and follow along at CAC and Growth break it, and several of the metrics that are included... which are primarily for 2022, and some are based upon 2023 estimates.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Dave "CAC" Kellogg and Ray "Growth" Rike continue their break down the recent Battery Ventures - State of the OpenCloud 2023 Report which includes a historic view of performance benchmarks and some predictions on how AI will impact performance metrics in the future.During Part 2 of this episode the co-hosts cover several metrics and SaaS industry trends including:Growth RatesTechnology Buyer Sentiment heading into 2024The impact of balanced growth + profitabilityBusiness model and pricing evolutionStock Option Re-pricingThe human capital impact of AI...beware Sales and MarketingThe entire report is available by clicking here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Dave "CAC" Kellogg and Ray "Growth" Rike break down the recent Battery Ventures - State of the OpenCloud 2023 Report which includes a historic view of performance benchmarks and some predictions on how AI will impact performance metrics in the future.During this episode the co-hosts cover several metrics and SaaS industry trends including:Growth Rates Technology Buyer Sentiment heading into 2024The impact of balanced growth + profitabilityBusiness model and pricing evolutionStock Option Re-pricingThe human capital impact of AI...beware Sales and MarketingThe entire report is available by clicking here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Dave "CAC" Kellogg and Ray "Growth" Rike analyze the recently published OpenView Partners 2023 Benchmark Report which was conducted in partnership with Paddle. Interesting insights into the declining growth rates and increased customer churn trends.Key metrics and the associated benchmarks segmented by company ARR analyzed include:Growth RateRule of 40Net Revenue RetentionGross Revenue RetentionCAC Payback PeriodHeadcountRevenue/FTEThe OpenView 2023 Benchmark Report is at: openviewpartners.com/2023-saas-benchmarks-report/See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Rule of 40 is a long standing metric used by investors to determine the health and enterprise value of a SaaS company, that is misunderstood far too often - so CAC and Growth dedicated an episode to how the Rule of 40 is calculated and how it impact company valuations including:Calculation formulaBest variable for the operating profitability componentBalance of growth and profitability yielding the highest valuation multiplesWhen does the Rule of 40 become valuable versus a vanity metricIf you are a SaaS operator or a public SaaS company investor, this episode covers and important topic and 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.

Presenting performance metrics at a board meeting is a critical skill for every SaaS CEO, CFO and executive team member - Dave "CAC" Kellogg and Ray "Growth" Rike share a few best practices during this episode including:First slide provides a holistic executive summarySecond slide establishes the foundation for every other slideThe importance of showing trends and establishing contextMistakes to avoidThis episode encapsulates much of the content from two different presentations shared at SaaStr annual 23' and SaaS Metrics Palooza 23'See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.