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.
🎯 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
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.
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.
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.
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
@@gouribhalerao 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!!!!
David Skok, you are magnificent.
Spoken like someone who knows it inside out! 👏
Before this, there were many blindspots for me in Saas business model. But this talk cleared lot of questions for me
You present your topics with such passion!
Brilliant! The most valuable 20 mins ever!
Most valuable RUclips video I have seen this year 👏
This was simply brilliant and needed so badly in understanding the matrix of SaaS
Brilliant Session!
Amazing presentation. Just what I needed! What are other great videos that teach about the SaaS business?
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.
I am 2 hours new to this and find thus very intriguing.
Thank you! Supervaluable, well structured and eye opening, and in only 20 minutes!!
An immense wealth of information wow. Amazed. Thank you.
So much powerful information in a simple presentation
Best video on SAAS metrics
An eye opener session for people who are into SAAS.
Great video. and must watch to get the context of SaaS growth
Can someone tell me who’s this guy? It’s amazing
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
🎯 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
Such a great talk.
Just Superb! Talk! Truely amazing.
Thanks alot
Equations are simple but the parameters are complex.
Great explanation, thank you Mr. Skok
Amazing stuff
Amazing video!
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.
hands on ! super useful !
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.
very interesting thanks!
Ave learned alot👏🏾
what a great talk
Awesome talk. To the point and so much information
Amazing!!!
Great Video!
You Sir are a "God" amongst men
very informative and useful session
Thank you
Amazing. Anyone who has tested this approach?
Incredible
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.
Excellent, high level!
Amazing.... Excellent..
I am thinking cosing this video in my super admin dashboard
Great video, great content. Thank you!
What a smart guy
where's the second talk he mentions at the end of the video?
Awesome! Thanks ! Distilled simplicity.
The other infamous Lord Kelvin saying is “heavier-than-air flying machines are impossible” :)
Do you have a template for those metrics
Mind bender!!
is thre a link of the video of the talk he is mentioning link please
Brilliant
what's his blog name?
Wow! Blown my mind.
Good for SDR BDR AE Sales people?
What do you mean by "Average Deal Size" in funnel section ?
Shivam Mohan Trivedi deal as in one sale
19:07 Skipped that part?
Nice ppt
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.
Gonzalez Lisa Perez Carol Perez Scott
the quality of presentation is so poor, a 3rd grader makes better deck. Quite diasppointed
Brilliant