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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 12.8.23 - Q3 Earnings Preview

Clouded Judgement

.” Here’s a summary of the quarter in 5 charts: Quarterly Growth rates: Still decelerating, but not as quickly Net Retention: Down from historical averages, but starting to level off. Companies have reduced headcount, but new bookings aren’t getting any easier Quarterly net new ARR growth : Some green-shoots!

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Clouded Judgement 4.7.23

Clouded Judgement

That’s a big difference, especially when you layer in the growth in headcount from 2021 to 2022. Essentially companies grew headcount significantly to add less ARR. We’re obviously seeing the rightsizing of this now with headcount reductions. The second chart comes from the latest MS CIO survey (below).

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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. Vimeo has spent a fair amount historically on advertising, primarily to fuel the more prosumer individual online subscription business. They top out of what you can do in advertising and rev share on YouTube.

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The ultimate customer support tech stack for 2022

Intercom, Inc.

Powered by a modern business messenger , it scales your ability to answer more questions from more customers without increasing headcount, budget, or hours logged. InMoment helps your team to keep an ongoing pulse on how your customers feel about your product or service so you can proactively drive retention, engagement, and advocacy.

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How to Improve Customer Retention—Even During a Pandemic

Totango

Customer retention is the continuation of a valued service. In B2B terms, it is still possible to maintain your customer relationship and even improve customer retention during uncertainty, but you will need to focus on five key steps: Understand Your Customer. How Customer Success Can Improve Customer Retention.

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8 Finance Mistakes Growing SaaS Businesses Make and How to Fix Them

SaaSX

This INCLUDES headcount-related expenses. If you are utilizing Gusto or a similar payroll tool, your headcount expenses are likely coming into your P&L as one (or maybe two) line item(s). these figures are going to be WRONG because you haven’t properly accounted for your headcount costs in Sales & Marketing.

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