Remove AWS Remove Headcount Remove Payment Features Remove Retention
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Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today

Clouded Judgement

Enterprise software businesses strive for 90-95% gross retention (generally the percent of revenue that sticks with you vs churns altogether), with net expansion in the 120%+ range (the aggregate change in expansion - contraction - churned revenue). Namely, retention!! The biggest culprit is describing non recurring revenue as ARR.

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Clouded Judgement 3.31.23

Clouded Judgement

The majority of COGS (revenue less COGS = gross profit) fall in hosting costs (ie AWS), and some customer support. If we believe that AI will ultimately allow us to do “more with less,” we may see headcount growth slow for traditional roles. What do I mean by this?

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