Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today
Clouded Judgement
MARCH 22, 2024
For SaaS businesses that target smaller SMB customer segments, gross retention is typically in the mid to low 80’s with net expansion in the ~105% range. And once a customer has paid back the initial acquisitions costs to acquire it, all future streams of revenue can loosely be described as a cash flow annuity.
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