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.
Is Pipeline Coverage Ratio simply the inverse of the win rate? Many people will translate a 20% win rate into the need for a 5:1 Pipeline Coverage Ratio - Dave "CAC" Kellogg and Ray "Growth" Rike dive into why that just isn't the case! There are multiple variables that need to be considered including:
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SaaS Account Executive Benchmarks including On-Target Earnings, Commission Rates, Quota, Quota Achievement, Renewal and Expansion Responsibilities are a few of the benchmarks that Dave "CAC" Kellogg and Ray "Growth" Rike discuss in this episode.
Account Executive Benchmarks discussion include:
If you are leading a B2B SaaS sales team or have one in your company that directly impacts financial performance this is a must listen episode of SaaS Talk with the Metrics Brothers!
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Logan Bartlett, Managing Director at Redpoint Ventures recently shared the Market Overview Report they presented to their Limited Partners in March '24 at their AGM event at the Chase Center in San Francisco. Ray "Growth" Rike and Dave "CAC" Kellogg review the key insights during this episode.
Insights that Dave and Ray discussion include:
Click here to get the report and to follow along Dave and Ray's conversation - as they sometimes go off the deep end!
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Rubrik, a cloud industry cybersecurity company went public on April 25th - Dave "CAC" Kellogg and Ray "Growth" Rike break down the key metrics that Rubrik used as the foundation to their S-1 and Initial Public Offering. Those metrics include:
The Metrics Brothers also discuss the Rubrik transition to a recurring revenue model and the two-tier stock structure used to ensure voting control remains with the founders and early investors.
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Dave "CAC" Kellogg and Ray "Growth" Rike discuss how a "growth rate" endures for a SaaS company trend over time!
Topics covered during the conversation include:
Growth Endurance is the measure of how a company's growth rate endures over time: GE = current year’s growth rate / last year’s growth rate.
At an 80% Growth Endurance (2021 value) says that a companies growth rate in the next year will be 80% of the current years growth
- example: 70% growth this year would predict 56% growth next year
Growth Endurance has decreased over the last two years and is NOW ~ 65% (2023)
- example: 70% growth this year would predict 45.5% growth next year
Growth Endurance decreasing from 80% to 65% may not sound that bad but let's look at the impact over 5 years at a $10M ARR company today but...
Using a 6.5x "Enterprise Value to Revenue" multiple that projects a material decrease in Enterprise Value 👇
The change in Growth Endurance translates into a $437M decrease in EV (at the same 6.5x multiple)
🤷♂️ If Growth Endurance has decreased by 15% over the past two years and Customer Acquisition Cost & Growth Efficiency have not improved materially over the past 7 quarters it might be time to change <insert ideas here>...
The "T2D3" Growth Model suggests the below ARR growth for a B2B SaaS company
The "56789" Growth Model suggests the below ARR growth for a B2B SaaS company
If you are a fan of B2B SaaS and have a desire or need to stay on top of the most recent trends this episode is a great listen!
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Dave "CAC" Kellogg and Ray "Growth" Rike continue their discussion on the SaaS Metrics Maturity Model which includes the below five levels:
Level 1: Lay the foundation
Level 2: Build trust
Level 3: Link Metrics to Business Strategy
Level 4: Build a metrics culture
Level 5: Agree on strategic trajectory
If you are a creator, user or participant in how your company uses metrics to measure performance, inform decision making and/or report performance to your boss, your board and your investors this conversation will be valuable!!!
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Dave "CAC" Kellogg and Ray "Growth" Rike discuss the 5 root causes that created the need to develop a SaaS Metrics Maturity Model for companies as they scale.
The top five root causes that lead to the 15 primary problems in how companies use metrics include:
This episode discusses the key challenges in using metrics and the approaches to address those challenges. This discussion builds up to the introduction of the Metrics Maturity Model and the 5 levels of maturity:
If you use, develop or just are a student of SaaS Metrics - this episode is full of insights and ideas on how to accelerate your company's metrics maturity model to level 5!!!
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Dave "CAC" Kellogg and Ray "Growth" Rike discuss the Customer Lifetime Value to Customer Acquisition Cost (LTV:CAC) Ratio - a metric many consider the ultimate compound metric that investors love.
During this episode topics covered include:
If you have ever heard of the LTV:CAC Ratio or just are interested in some of the details and finer points from CAC and GROWTH - this is a entertaining and information episode!
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This is a replay of one of the most popular SaaS Talk episodes (#5) published in season #1. Dave "CAC" Kellogg and Ray "Growth" Rike dive deep into all things Customer Acquisition Cost (CAC) including the CAC Ratio.
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Aileen Lee, Founder and Managing Partner at Cowboy Ventures recently wrote an article entitled "Welcome Back to the Unicorn Club, 10 Years Later" (1/18/24) which was a follow up to an article she wrote in November, 2013 entitled "Welcome to the Unicorn Club: Learning from Billion-Dollar Startups".
Our SaaS Talk™ with the Metrics Brothers co-hosts, Dave "CAC" Kellogg and Ray "Growth" Rike do a deep dive into how private and public company valuations are calculate, explore the difference between Market Capitalization and Enterprise Value, and uncover a few of the "inside baseball" secrets to how $1B Unicorn may be worth much less.
Topics discussed include:
The number of unicorns has grown from 39 in 2013 to 532 in 2023 per Cowboy Ventures (1,000 according to Battery Ventures). Unfortunately ~ 40% are trading for a much lower price on secondary markets than the last post-money valuations.
If you love the idea of creating or being part of a VC backed company worth more than $1B, or are just interested in the material reduction in the creation of new unicorns, this episode is full of detail, insights and a little humor!
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