🎯 Key Takeaways for quick navigation: 00:34 *📊 Metrics are important for improving SaaS businesses and aligning teams.* 02:14 *💰 Growth rate and profitability are key factors in computing valuation for SaaS companies.* 04:35 *📈 Tracking net new ARR (Annual Recurring Revenue) is crucial for understanding SaaS business growth.* 06:01 *🔢 Running a SaaS business like a funnel simplifies operations and helps focus on important metrics.* 09:18 *💼 Hiring salespeople on time is critical for meeting booking goals in SaaS companies.* 12:58 *💸 Understanding customer churn rates and achieving negative churn is crucial for long-term SaaS business success.* 16:29 *💵 Utilizing unit economics helps understand customer segments and optimize the profitability of a SaaS business.* 20:53 *📈 Optimizing the funnel, tracking bookings, focusing on customer retention, achieving negative churn, and understanding profitability through unit economics are essential for SaaS success.* Made with HARPA AI
So then what is the secret sauce to get to repeatable, scalable and profitable while still growing the product? B2B sales needs the product to evolve and scale while still selling. I know there is no easy answer but this is not a unique problem.
The concepts are exceptional. I appreciate you shared. However, in case of negative churn, the customer one who is churned may give a negative feedback. I mean, if the first customer who is churned will no more advocate for the business. so isn't it a predictable loss. Maybe, he would have recommended the business to someone who has the value worth 8K.
Interesting and valuable story of metrics. Would like to know a bit about the best sales person or people David's ever worked with. Seems to marginalize the sales team a bit, but perhaps for sake of brevity.
Rule of 40 -> One thing which is critical here is the current scale. If you are a 500k ARR company, 40 is not what you should be aiming at. If you are a 100M ARR company, that's great.
At an $800k ARR what should be the target Rakesh? What estimate valuation would the above ARR, with 15% growth and 3% churn and 10% profitability. 10 year trading history
@@angeloveeran7793 Sorry the comment above is not as valid in the current downturn economic scenario. I do not have enough info here. In the old world, ignore profitability to get 50%+ (or 100+%) growth 📈 at 1M was the advice we heard a lot.
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1. Rule of 40
2. Repeatable, Scalable, Profitable
3. Net new ARR = New ARR + Expansion ARR - Churned ARR (5:00)
4. Bookings = Sales people x PPR (Productivity per Rep) (9:40)
5. LTV should > CAC (Cost Acquire Customer) (12:30)
6. 14:00
7. Negative churn matters (16:00)
8. Balance Sheet & Profit and Loss Statement DON'T work for SAAS
9. Guidelines for SAAS success: (a) LTV > CAC * 3 (b) Month to recover CAC < 12~18 (18:46)
Really great session!! Although couldn't understand what's meant by "Quota" here...especially in the metric Salesperson Unit Economics at 20:15
@@titatatuta quota is salesperson’s target
This guy is a total legend. This 20 minutes will carry me for the next 5 years of my life. Soooo thankful for this.
100% Agreed! This video is a treasure..
5 yrs later. Did it serve you well?
Any progress
What happened?
Pussy
This is one of those great training sessions you want to study over and over.
PHD knowledge right there
No
I can't belive this is free! This is so helpful and awesome. Thank you so much!!!!
🎯 Key Takeaways for quick navigation:
00:34 *📊 Metrics are important for improving SaaS businesses and aligning teams.*
02:14 *💰 Growth rate and profitability are key factors in computing valuation for SaaS companies.*
04:35 *📈 Tracking net new ARR (Annual Recurring Revenue) is crucial for understanding SaaS business growth.*
06:01 *🔢 Running a SaaS business like a funnel simplifies operations and helps focus on important metrics.*
09:18 *💼 Hiring salespeople on time is critical for meeting booking goals in SaaS companies.*
12:58 *💸 Understanding customer churn rates and achieving negative churn is crucial for long-term SaaS business success.*
16:29 *💵 Utilizing unit economics helps understand customer segments and optimize the profitability of a SaaS business.*
20:53 *📈 Optimizing the funnel, tracking bookings, focusing on customer retention, achieving negative churn, and understanding profitability through unit economics are essential for SaaS success.*
Made with HARPA AI
Most valuable RUclips video I have seen this year 👏
You present your topics with such passion!
Brilliant! The most valuable 20 mins ever!
David Skok, you are magnificent.
Thank you! Supervaluable, well structured and eye opening, and in only 20 minutes!!
Spoken like someone who knows it inside out! 👏
This was simply brilliant and needed so badly in understanding the matrix of SaaS
Amazing presentation. Just what I needed! What are other great videos that teach about the SaaS business?
Brilliant Session!
An immense wealth of information wow. Amazed. Thank you.
Before this, there were many blindspots for me in Saas business model. But this talk cleared lot of questions for me
So much powerful information in a simple presentation
I am 2 hours new to this and find thus very intriguing.
Best video on SAAS metrics
So then what is the secret sauce to get to repeatable, scalable and profitable while still growing the product? B2B sales needs the product to evolve and scale while still selling. I know there is no easy answer but this is not a unique problem.
Such a great talk.
The concepts are exceptional. I appreciate you shared. However, in case of negative churn, the customer one who is churned may give a negative feedback. I mean, if the first customer who is churned will no more advocate for the business. so isn't it a predictable loss. Maybe, he would have recommended the business to someone who has the value worth 8K.
Just Superb! Talk! Truely amazing.
where's the second talk he mentions at the end of the video?
Great video. and must watch to get the context of SaaS growth
Really great session!! Although couldn't understand what's meant by "Quota" here...especially in the metric Salesperson Unit Economics at 20:15
means sales target
hands on ! super useful !
Great explanation, thank you Mr. Skok
Awesome talk. To the point and so much information
19:07 Skipped that part?
Do you have a template for those metrics
Can someone tell me who’s this guy? It’s amazing
Amazing video!
Good for SDR BDR AE Sales people?
Amazing stuff
Ave learned alot👏🏾
what a great talk
What do you mean by "Average Deal Size" in funnel section ?
Shivam Mohan Trivedi deal as in one sale
very interesting thanks!
what's his blog name?
Amazing!!!
Equations are simple but the parameters are complex.
Excellent, high level!
Great Video!
is thre a link of the video of the talk he is mentioning link please
Great video, great content. Thank you!
Amazing. Anyone who has tested this approach?
Thanks alot
You Sir are a "God" amongst men
very informative and useful session
Thank you
Incredible
An eye opener session for people who are into SAAS.
Interesting and valuable story of metrics. Would like to know a bit about the best sales person or people David's ever worked with. Seems to marginalize the sales team a bit, but perhaps for sake of brevity.
Amazing.... Excellent..
Wow! Blown my mind.
Mind bender!!
What a smart guy
Rule of 40 -> One thing which is critical here is the current scale. If you are a 500k ARR company, 40 is not what you should be aiming at. If you are a 100M ARR company, that's great.
At an $800k ARR what should be the target Rakesh?
What estimate valuation would the above ARR, with 15% growth and 3% churn and 10% profitability. 10 year trading history
@@angeloveeran7793 Sorry the comment above is not as valid in the current downturn economic scenario. I do not have enough info here. In the old world, ignore profitability to get 50%+ (or 100+%) growth 📈 at 1M was the advice we heard a lot.
Awesome! Thanks ! Distilled simplicity.
I am thinking cosing this video in my super admin dashboard
Brilliant
The other infamous Lord Kelvin saying is “heavier-than-air flying machines are impossible” :)
Nice ppt
Gonzalez Lisa Perez Carol Perez Scott
Everyone is saying life changing or amazing when he just basically said:
more sales ppl = more money.
good salesperson = more money.
Sell cheap drug, even at a loss and then when they are addicted charge higher giving less.
It's not rocket science people.
the quality of presentation is so poor, a 3rd grader makes better deck. Quite diasppointed
49542 Halvorson Ranch
Brilliant