Stay ConnectedThe Metrics Brothers is hosted by Dave “CAC” Kellogg and Ray “Growth” Rike. The Metrics Brothers provides unique insights, strategies, tactics, and metrics that are relevant to AI-Native software and SaaS companies.
Each 25-30 minute episode will cover a topic critical to leading a B2B software company, and chock-full of practical advice that can be introduced and applied in most Native-AI, Agentic AI, and B2B software and SaaS companies.
ServiceTitan, a vertical SaaS company for the trades recently filed their S-1 and went public on December 12, 2024. Dave "CAC" Kellogg and Ray "Growth" Rike discuss many details regarding the S-1 including the basic enterprise value creating performance metrics and some very interesting aspects of the IPO structure.
During this episode, Dave and Ray discuss several aspects of the S-1 and IPO measured against industry benchmarks including:
One of the sources of information used for this episode was the Meritech Capital S-1 breakdown which can be read here.
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KeyBanc Capital Markets in partnership with Sapphire Ventures recently published their 2024 SaaS Metrics Benchmark report. During today's episode, Dave "CAC" Kellogg and Ray "Growth" Rike dive into this years highlights including:
If you are a SaaS executive, employee or investor this episode is a great listen!
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The Sales Operations function evolves dramatically as a company scales and Meghan Gill, SVP Sales Ops and Sales Development at MongoDB has lived that reality. Meghan started in Marketing at MongoDB as employee number 8 as the first non engineering hire, and then seven years later took over Sales Operations in preparation for their IPO.
CAC and Growth discuss the evolution of Sales Ops with Meghan and discuss several key topics including:
Hearing how the role of Sales Operations evolves from pre IPO to post IPO and continuing to $2B+ directly from a person who has been in the middle of making that journey possible makes for a highly informative conversation and a unique guest centric SaaS Talk with the Metrics Brothers episode!!!
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CAC and Growth discuss the recent Scaling SaaS from $1M to $20M ARR ICONIQ Growth report that provides a long term view on the performance metrics benchmarks that SaaS companies exhibit at granular stages of growth including $5M, $10M, $15M and $20M ARR.
Benchmarks covered include:
The ICONIQ Growth "Scaling SaaS from $1M to $20M ARR" Report provides unique insights and perspectives on the benchmarks that define success as measured by both the top quartile and median benchmarks for the 107 private SaaS companies that are included in this research.
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The Remaining Performance Obligation (RPO) metric has become a more standard metric that public company Wall Street analysts have started to follow closely to help evaluate the bookings growth of recurring revenue companies. CAC and Growth cover the following topics regarding RPO including:
If you are interested in how public company analysts use the RPO metric or are just a student of the SaaS industry - this episode dives deep into an increasingly important SaaS investor metric!
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Customer Retention is a hallmark of the SaaS recurring revenue business model. But what is the primary metric to measure the cost of retaining each customer, how is the efficiency to renew ARR calculated, and what goes into that metric?
Dave "CAC" Kellogg and Ray "Growth" Rike go deep into the components of Customer Retention Costs and the value in measuring including:
The SaaS industry has multiple metrics that measure the cost to acquire a customer (Customer Acquisition Cost), the efficiency of acquiring new customers (CAC Ratio), the payback period on Customer Acquisition Costs (CAC Payback Period) and how much recurring revenue is retained every period (Gross Revenue Retention- GRR)...but no standard metric that measures the efficiency of retaining and renewing customers.
During this episode, CAC and Growth dive deep into the topic of the Customer Retention Cost Ratio and the Customer Renewal Cost Ratio!
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New investment announcements in B2B SaaS companies are not quite what they seem!? Over the past few years, public announcements have moved from how much capital was raised to what the valuation of the company was at funding. BEWARE - those valuation headlines are full of nuance and details that are not disclosed!!!
Dave "CAC" Kellogg and Ray "Growth" Rike - also known as The Metrics Brothers go deep into the details that are left out and are present behind the headline valuation announcements including:
If you are in the B2B SaaS industry and interested in the "story behind headline valuation announcements" - this is a great conversation to hear!!!
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Contracted Annual Recurring Revenue (CARR) and Annual Recurring Revenue (ARR) are commonly used terms in the SaaS and Cloud Industry but are not standardized leading to inconsistent calculation. In fact, they were the first two metrics the SaaS Metrics Standards Board published standards upon.
Dave and Ray discuss the current definitions, calculations and how Usage-Based Pricing is impacting the historic ARR reporting model.
During today's episode CAC and Growth cover the following topics:
With ARR not being a FASB / GAAP Revenue reporting standard - the opportunity and challenges for having multiple calculation and reporting models is easy to identify - but hard to rectify.
If you are using, considering using or do not use Usage-Based Pricing this conversation and episode is a great listen.
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Free Cash Flow is a key metric for any SaaS investor and thus for SaaS CFOs and CEOs. Moreover Free Cash Flow Margin is a key variable in the Rule of 40 - a key enterprise value creation metric. Dave "CAC" Kellogg and Ray "Growth" Rike dive deep into the value behind the FCF metric and the different ways to calculate!
During this episode Dave and Ray discuss the following elements of Free Cash Flow:
Free Cash Flow is not a metric limited to B2B SaaS companies but has become an increasingly important metric to SaaS investors as the industry matures as measured by how Enterprise Value has become more correlated to a blend of growth and profitability.
This episode is a great listen for anyone interested in the core financial metrics that impact the value of a B2B SaaS company!
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Bessemer Venture Partners recently released their 9th annual Cloud 100 Report. Dave "CAC" Kellogg and Ray "Growth" Rike dive deep into the impact of AI companies on the top 100 private cloud companies which increased their aggregate enterprise value to $820B and increased their growth rate to 70%!
Key highlights Dave and Ray discuss include:
As a follow-on to the BVP "State of the Cloud 2024 Report" the Cloud 100 highlights the era of AI has moved from hype to reality as measured by growth rates and enterprise value!
If you are interested in the latest "CLOUD" industry trends as measured by company value, revenue growth rates and industry impact this episode is a must listen!
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