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

Clouded Judgement

Subscribe now ARR (Annual Recurring Revenue) vs ERR (Experimental Runrate Revenue) ARR (Annual Recurring Revenue) is one of the most popular SaaS (Non-GAAP) metrics. On top of that, churn and expansion tend to be quite predictable with low volatility. Why do software companies get “credit” simply for revenue?

AI 183
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A Look Back at Q4 '23 Public Cloud Software Earnings

Clouded Judgement

The first few months of this year felt like a lot of churning in the market. It looks at the YoY dollar change in quarterly revenue from the hyperscalers (just looking at Azure / AWS because the data goes back further) going back a few years. Beating consensus revenue estimates is the first aspect of a successful quarter.

Cloud 177
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The Most Common SaaS Sales Potholes and How to Avoid Them with Mark Roberge (Podcast #498 and Video)

SaaStr

However, even the savviest entrepreneurs might be unaware of some of the blind spots that could be costing revenue. . Says Roberge, “We’re using a sales comp plan that was invented in the 1980s, and it’s causing our customers to utilize their licenses at a lower rate, and it’s causing revenue contraction.”. When should you scale?

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Four Sales Compensation Tactics for Consumption-Based GTM with MongoDB’s SVP of Sales

SaaStr

What’s evolved over the years and is driven by hyper-scalers like Google Azure, AWS, Twilio, and Stripe is the consumption-based model. Driving Market Acquisition When designing a compensation plan, you have to decide what behaviors you want to drive. The first might be market acquisition. This is MongoDB’s approach.

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20 quick insights on Customer Success and SaaS metrics with Dave Kellogg

ChurnZero

tech ops, AWS, technical support). A: I’d ignore early-outs in available to renew (ATR) churn calculations. The other answer: if they’re not a customer, they don’t count in churn; so maybe you don’t count them as customers until the end of the out period. * Q: Should you track partial churn (i.e.,

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SaaS Growth: Top Strategies and Trends for SaaS Growth

ProfitWell

SaaS revenue is expected to reach $143.7 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. This, in turn, helps reduce churn. billion by 2022. billion of that.

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Using Gross Margin to Score Your Product’s Maturity

OpenView Labs

Now, for each segment, isolate its revenue and COGS. If revenue hides all sins, gross margin reveals them via segmentation. “If revenue hides all sins, gross margin reveals them via segmentation. Offering free usage is par for the course as a SaaS customer acquisition strategy.

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