Inside Tribe Capital: Building a $1.6B Data-Driven Venture Capital
Spotlight Podcast
The Evolution of Growth Accounting Through Technology
The concept of MAU, monthly active users, and MR, monthly recurring revenue, were popularized by Facebook and software as a service like Salesforce respectively, becoming standard in discussing subscription revenue. The future of growth accounting is tied to technology advancements. In the past, counting monthly active users was impractical due to computational limitations, leading to the use of page views. The evolution of technology made it feasible to count MAU, highlighting the importance of technology in growth accounting. Similarly, MRR requires technology for efficiently collecting payments from customers. The sharing economy introduced GTV, gross transaction volume, for companies like Uber and Airbnb, showcasing the necessity of technology for processing large volumes of transactions. Technology plays a crucial role in enabling businesses to capture and analyze essential metrics for understanding growth and revenue in the modern era.
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