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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. Many investors laugh (and some rightly so) at the fact that software companies’ valuations are often described as a multiple of revenue.

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Customer Success benchmarks: headcount and budgets

ChurnZero

Customer Success benchmark: headcount How many people should be on a Customer Success team? However, we are using common benchmarks of one CSM per $1M in revenue, or one CSM per $2M in revenue for companies with mature or scaled Customer Success departments to assess team size. When asked about non-headcount budgets; 8.3%

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Customer Success benchmarks: headcount and budgets

ChurnZero

Customer Success benchmark: headcount How many people should be on a Customer Success team? However, we are using common benchmarks of one CSM per $1M in revenue, or one CSM per $2M in revenue for companies with mature or scaled Customer Success departments to assess team size. When asked about non-headcount budgets; 8.3%

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SaaS Is Growing Up: 4 Business Model Changes To Adopt with Notion Capital

SaaStr

Some of the changes we’ve seen in the last year or two include: CAC reduction Headcount optimization Price complexity Quality of revenue A different environment means a different strategy, and Notion Capital lays out four business model changes that could be helpful based on what peers are doing. Strive for $150k of revenue per FTE.

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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. Revenue multiples are a shorthand valuation framework.

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Clouded Judgement 12.8.23 - Q3 Earnings Preview

Clouded Judgement

Companies have reduced headcount, but new bookings aren’t getting any easier Quarterly net new ARR growth : Some green-shoots! Revenue multiples are a shorthand valuation framework. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Top 5 Median: 16.0x

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From first touch to qualified lead: How to use live chat for sales

Intercom, Inc.

Increase your leads without increasing your headcount. But one of the major benefits of live chat for sales is that it allows you to capture and qualify more leads without needing to increase headcount. Unity’s inside sales team drove 80% of its revenue through live chat. Learn more ?.