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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. However, it’s also one of the most loosely used metrics, and is frequently misused. Do you have ARR or ERR?

AI 183
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1 Key SaaS Sales Metric to Fine-Tune Sales Productivity

InsightSquared

For these reasons, accurately tracking key sales metrics and benchmarking your performance against peers and market leaders is critical to getting the most out of your sales resources. Typical SaaS Sales Metrics. Underlying those metrics are processes which can improve or reduce performance in each of the above metrics.

Scale 102
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How to Present an Operating Plan to your Board

Kellblog

The first slide is focused on the ARR leaky bucket, metrics derived from ARR, and ARR-related product.ivity measures. Slide 1: The Leaky Bucket of ARR and Related Metrics. Not to be confused with cash conversion score which is defined as an inception-to-date metric, not a period metric. Expansion ARR as % of new ARR.

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SaaS Financial Plan 2.0

The Angel VC

Therefore the key drivers of my imaginary startup are organic growth rate, marketing budget and customer acquisition costs, conversion rate, ARPU and churn rate. If you have a SaaS startup with a higher-touch sales model where revenue growth is largely driven by sales headcount, the plan needs to be modified accordingly.

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A New Way To Tell if a Company Is Truly Product-Led

OpenView Labs

Like OpenView’s coverage of SaaS metrics and benchmarks? This new way of thinking about R&D spend also requires companies to rethink the relevance of classic SaaS metrics like CAC payback, which only consider Sales and Marketing costs as part of customer acquisition.). Atlassian has an R&D:S&M ratio of 2.9:1.

Scale 98
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What It’s Like Running a Profitable $400M Public SaaS Company with Vimeo CEO Adam Gross 

SaaStr

They also have a media segment, a separate business supporting creators who want to do subscription-based video monetization. Customer acquisition. Vimeo has spent a fair amount historically on advertising, primarily to fuel the more prosumer individual online subscription business. This is how Adam ended up at Vimeo.

AI Search 224
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Intercom on Product: Accelerating your strategy after COVID-19

Intercom, Inc.

” I think the “Sure thing boss, give me more headcount” is obvious. If you’re a SaaS company, that could be new customer acquisition, it could be an expansion or even reduce contraction, reduce churn. Headcount and salaries and comp and all that kind of stuff. That’s one category. Paul: Yeah.

Strategy 228