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Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today

Clouded Judgement

In it's truest form, ARR is used by pure SaaS business models to describe the aggregate annual value of the entire customer set. Many laude the SaaS business model because ARR is inherently predictable - you know what you’re revenue will be over the coming 12 months, and sometimes even further out than that.

AI 183
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That’s a nice little $1-2M SaaS company you have here. Call me to discuss if it will scale!

The Angel VC

At that point it becomes a lot harder because the next set of customer acquisition channels will likely be much more expensive. But it would also lead to the generation of a large number of small-ish but still very viable SaaS businesses, many of which could generate very decent profits for their founders. It’ll depend on who you ask.

Scale 192
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SaaS, Subscription, and On-Premises Software – Don’t Confuse Subscription with SaaS

OPEXEngine

The terms aren’t universally understood, nor are the implications of each on the financial model of a company, so the following is an effort to provide an overview. At OPEXEngine, we pull apart the different nuances of each business model to make sure we are benchmarking companies correctly. In addition, it affects cash flow.

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Facebook Workplace’s Julien Codorniou on turning companies into communities

Intercom, Inc.

As Workplace’s global head, Julien Codorniou has been spending the past few years exploring how to make his department align with Facebook’s mission while executing an entirely different business model that relies on companies promoting community within their workforce. Workplace is about connecting people.

Scale 151
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SaaS Growth: Top Strategies and Trends for SaaS Growth

ProfitWell

By almost all key metrics, now is a great time to get into the SaaS business model. Running your own server to handle your customer's valuable data requires a huge investment to match the same level of security and reliability that comes baked into services like Amazon AWS and Microsoft Azure cloud. AI Integrations.

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Using Gross Margin to Score Your Product’s Maturity

OpenView Labs

For example, 84% GM means that for every dollar of product sold, a business keeps 84 cents. As a founder, you can use this 84 cents to pay salaries, office rent, dividends, or invest in R&D. While inevitable and with multivariate causality, it speaks to the product’s maturity and business model.

Scale 52
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When and How to Build Second Products

Casey Accidental

To continue its growth, instead of investing in new product value, Eventbrite kept grafting new growth loops onto this core loop to acquire more event creators and drive more ticket sales per event, creating a much more complicated growth model that looks like the below. This is what I realized when I joined Eventbrite.

Payments 113