The Metrics Brothers (fka SaaS Talk)

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.

Delve into a decade of SaaS metrics trends, analyzing KeyBank's metrics over 11 years. Explore the challenges in meeting the 'Rule of 40' and potential shifts to the 'Rule of 60'. Gain insights on future industry trends and the evolving role of AI in outbound strategies.

Dave "CAC" Kellogg and Ray "Growth" Rike discuss all things Bookings, Total Contract Value, Annual Contract Value, Billings and revenue including:Bookings vs Total Contract Value vs Annual Contract ValueBillings - more than an invoice?Revenue - CARR, ARR and GAAPB2B SaaS companies regularly use the above terms, but unfortunately not always consistently defined, calculated and/or utilized.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 dive deep into the ICONIQ | GROWTH 2023 - The New Era of Efficient Growth Report to discussed several key report components including:Enterprise Five MetricsResiliency RubricTrade-off between Growth and EfficiencyExpansion vs New Logo contribution to New ARROperating Expenses as a % of RevenueBenchmark utilization cautions, concerns and insightsGo grab the ICONIQ | Growth Report - take it for a read while listening to this episode to see if some of the key points Dave and Ray make resonate with your own personal perspectives.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 discussion on the importance of measuring revenue retention. This week they cover Net Revenue Retention (NRR) - a top three B2B SaaS Metric. 'During this episode they cover many aspects of how to calculate and use Net Revenue Retention including:Cohort method versus formula methodThe impact of Usage-Based Pricing on the NRR calculationNRR benchmarks using a Good, Better, Best frameworkIdeas on how to optimize and increase NRRIn addition, Dave and Ray answer three audience submitted questions - fulfilling their goal to address the questions that the B2B SaaS industry has about everything SaaS!See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The hosts discuss SaaS metrics from the Klaviyo S-1, including ARR, CAC Payback Period, GRR, and NRR. They explore the nuances of SaaS metrics and the lack of a standard definition. Topics also include Klaviyo's pricing model, customer churn, ARR calculation, and the abundance of information in Klaviyo S1 documents.

On this episode, Dave "CAC" Kellogg and Ray "Growth" Rike discuss Gross Revenue Retention (GRR), aka Gross Dollar Retention (GDR), and the different nuances to consider when calculating this metric.In addition, Dave and Ray discuss why this metric is important, how to calculate GRR and how to use the results to inform decision making.The Metrics brothers discuss the following nuances of calculating Gross Revenue RetentionThe definition of GRRCohort vs Formula MethodWhat to exclude and include in GRRHow is GRR impacted by Product Led Growth and/or Usage-Based Pricing environmentsHow does Churn and GRR compare...are they the same thing?GRR vs NRR - which is most important?If you love the nuances and details of SaaS Metrics - this is a thought provoking episode that highlights the nuances to consider when calculating Gross Revenue RetentionSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

On this episode, Dave "CAC" Kellogg and Ray "Growth" Rike discuss Customer Lifetime Value, and the different input variables required to calculate this compound, multi-variable metric.The Metrics brothers discuss the following nuances of calculating Customer Lifetime ValueThe basics - CLTV or LTVRevenue or Gross ProfitWhich number to use for churn in the formula (GRR, Logo Churn, all ARR or only available to renew ARR)Which number to use for the Average Revenue Per Account (ARPA) - new customers only or all customersIf you love the nuances and details of SaaS Metrics - this is a thought provoking episode that highlights the important of gaining alignment of the CLTV and CAC metrics in your B2B SaaS companySee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

On this episode, Dave "CAC" Kellogg and Ray "Growth" Rike discuss in detail how Usage-Based Pricing (UBP)  impacts the calculation of Customer Acquisition Cost and it's efficiency derivatives including CAC Ratio and CAC Payback Period.They discuss the three primary different types of Usage-Based Pricing Models including:Pure usage-based or consumption-based pricing with no minimum commitmentsMinimum commitment agreement that includes up to #x units and then overage $/unit over the minimumAnnual Subscription agreement to the platform and a $/unit of usage in addition to the annual subscriptionEach of the above models can impact what is consider Annual Recurring Revenue (ARR), Variable Recurrring Revenue (VRR) and/or pure variable revenue - and that will accordingly impact the CAC efficiency metric calculation methodology.If you love the nuances and details of SaaS Metric and how emerging GTM models impact traditional metrics calculations - this episode is for you!See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.