The SaaStr Annual conference was delayed this year, but Jason & crew know that the show must go on. So this year’s event has been rechristened SaaStr Annual @ Home and is being held in virtual, online format on September 2nd and 3rd. The team at SaaStr have assembled a strong, diverse line-up of speakers to provide what should be another simply amazing program.
The purpose of this post is to provide a teaser to entice you to attend my session, Churn is Dead, Long Live Net Dollar Retention Rate, bright and early on Wednesday, September 2nd at 8:00 AM.
“I eat SaaS metrics for breakfast,” he thinks. Or at least, “with.”
In this session, we’ll cover:
- Separating a SaaS business into its two component parts
- What makes SaaS companies so interesting for PE buyers
- The SaaS leaky bucket of ARR
- SaaS unit economics 101: CAC, LTV, LTV/CAC, and CAC payback period
- The three, fairly lethal problems with churn rates
- Why “ARR is a fact and churn is an opinion”
- Cohort analysis basics and survivor bias
- Net dollar retention (NDR) rate definition and benchmarks
- Explanatory power of NDR vs. ARR growth and the Rule of 40 in determining valuation multiples
- The NDR implications of Goodhart’s Law
- Applying Goodhart’s Law to NDR
- The next frontier: remaining performance obligation (RPO)
While the topic might seem a little dry, the content is critically important to any SaaS executive, and I can assure you the presentation will be fast-paced, fun, and anything but dry.
I hope you can attend and I look forward to seeing you there.