The Metrics Brothers

Bessemer Venture Partners recently released their " State of the Cloud 24 " which included the catch phrase "The Legacy Cloud is Dead - Long Live AI Cloud!" Dave "CAC" Kellogg and Ray "Growth" Rike discuss the report and the opportunities and threats to traditional SaaS companies. Topics discussed include: Social Media Buzz and Sources of "SaaS is Dead" Gen AI VC Funding Categories and Sources Top...

McKinsey recently published a report entitled " Navigating the Generative AI Disruption in Software " that Dave "CAC" Kellogg and Ray "Growth" Rike discuss in his episode. Some of the primary topics discussed include: GEN AI penetration velocity today vs SaaS in the early days GEN AI impact on switching from traditional SW/SaaS vendors Where will the rewards of Gen AI go Impact on SaaS Growth and...

What is the difference between the price and value of a SaaS company? How do metrics such as Enterprise Value to  EBITDA multiples play a role in this discussion? Dave "CAC" Kellogg and Ray "Growth Rike discuss the topic on this episode of SaaS Talk with the Metrics Brother and cover a wide array of topics including: What is a SaaS company worth? What is the definition of "price vs...

Trouble shooting Go-to-Market (GTM) issues is a critical competency to master for every SaaS company as they face the pressures of lower growth and reduced revenue growth efficiency. Dave "CAC" Kellogg and Ray "Growth" Rike introduce a GTM trouble shooting framework that addresses the five primary opportunities to improve GTM efficiency. The five key areas of Go-to-Market efficiency opportuni...

Benchmarkit recently published their 2024 SaaS Performance Metrics Benchmark Report based upon 936 B2B SaaS companies participation. Dave "CAC" Kellogg and Ray "Growth" Rike discuss the recent trends and insights. SaaS Metrics and the corresponding benchmarks discussed include: 2023 Growth Rates 2024 Planned Growth Rates CAC Ratio (Blended, New and Expansion) CAC Payback Period Net Revenue Re...

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: Win Rate versus Closed-Won Rate Conversion - there is a difference What happens to Pipe...

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: On-Target Earnings (2024 vs 2022) Base Salary and Variable Compensation Mix Commission Rates (2024 vs 202...

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: Enterprise Valuations - a return to 2019 Growth Rate...

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: Annual Recurring Revenue Growth Revenue (GAAP) Growth Net Revenue Retention Sales and Marketing Expenses as % of Revenue Free Cash Flow versus Net Incom...

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: T2D3 Growth Model and Mantra from 2015 "56789" Growth Model from Metric Brother Dave "CAC" Kellogg The Impact of Growth Endurance decreasing to 65% in 2023 versus 80% in 2021 Growth Endurance is the measure of how a company's growth rate e...

Dave "CAC" Kellogg and Ray "Growth" Rike continue their discussion on the SaaS Metrics Maturity Model which includes the below five levels: Level 1: Foundation Level 2: Trust Level 3: Strategic Linkage Level 4: Metrics Culture Level 5: Trajectory Level 1:  Lay the foundation Definitions and calculations Pipeline stages, forecast categories, close dates, values, SaaS metrics Semantics - what d...

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: There’s no shared metrics foundation There’s no trust Metrics are not integral to strategy The culture is not metrics-driven Metrics are not...

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: How to calculate Customer Lifetime Value How to calculate Customer Acquisition Cost Benchmarks for LTV:CAC Ratio and the translation to Rate of Return Primary...

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. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info .

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...

ICONIQ Growth recently published their " Essential Go-to-Market (GTM) Board Slides ", which includes the categories and metrics that they recommend be included in the GTM portion of the board deck. The template includes slides for the each category of GTM metrics they recommend including: GTM Scorecard Ideal Customer Profile ARR Funnel Logo Velocity Revenue and Logo Retention Win/Loss Analysis Pip...

Common Paper recently released a benchmark report on Cloud contract terms and conditions based upon data from over 1,000 companies. This is the first benchmarking report we have found that covers SaaS/Cloud Master Service Agreements. Dave "CAC" Kellogg and Ray "Growth" Rike, better known as the Metrics Brothers break down the benchmarks contained in the report including: Agreement Length Paym...

Nick Mehta, CEO of Gainsight joins Dave "CAC" Kellogg and Ray "Growth" Rike to discuss all things Customer Success and metrics! This is a "special episode" that combines deep Customer Success (CS) expertise with moments of light humor, pop culture references, and SaaS industry insider insights! Topics discussed and benchmarks shared during this episode include: ARR per CSM Customers per CSM Custom...

Dave "CAC" Kellogg and Ray "Growth" Rike discuss the top metrics for a Customer Service organization that span the top three goals of CS including resolving, deflecting, and/or preventing cases. During this episode, we lean heavily on CAC's background as a technical support agent for the first two years of his career, and then as the head of the Salesforce Service Cloud. The primary job of Custome...

What are the top metrics for a Professional Services (PS) leader in a B2B SaaS company? During this episode, our hosts Dave "CAC" Kellogg and Ray "Growth" Rike discuss the top PS metrics including: Professional Services Revenue / Billings Gross Margin (%) Billable Utilization Rate ($ and Hours) Non Billable Utilization including reasons Capacity ($ Billables and # Hours) Before diving deep into th...

Dave "CAC" Kellogg and Ray "Growth" Rike discuss the top metrics for a Chief Customer Officer to use presenting to the board and to report to the executive team when the CCO has responsibility for: 1) Customer Success; 2) Professional Services and; 3) Customer Support Net Revenue Retention Gross Revenue Retention Customer Health Score Billable PS Revenue Billable Utilization Gross Margin Cases per...

What are the top metrics for a Chief Marketing Officer to use when presenting to the board of directors and in a Quarterly Business Review. Dave "CAC" Kellogg and Ray "Growth" Rike discuss the below top 7 CMO metrics during this episode: Marketing Sourced Pipeline Generation Marketing Sourced Pipeline Conversion Day 1 Pipeline Coverage Demand Generation Cost per Opportunity Brand Awareness We...

Top 5 Metrics for Chief Revenue Officers that own the entire customer journey, including Customer Acquisition, Customer Retention and Customer Expansion process. Dave "CAC" Kellogg and Ray "Growth" Rike discuss 5 of the top metrics for a Chief Revenue Officer in 2024 including: ARR "Actual vs Plan" - the keep your job metric Pipeline Performance - Coverage & Efficiency Net Revenue Retention CA...

Rule of 40 has been the standard metric B2B SaaS investors and operators have used to measure balanced growth...will the Rule of 40 be surpassed by the new Rule of X recently created by Bessemer Ventures? Join Dave "CAC" Kellogg and Ray "Growth" Rike as they discuss the details about the Rule of X including: Foundational calculation formula for the Rule of X How to find the "Growth Weighted" M in...

How the Enterprise Value of a SaaS company impacted by growth rate is the topic of today's conversation with Dave "CAC" Kellogg and Ray "Growth" Rike - the result is a new metric named "ERG" - the Enterprise Value to Revenue to Growth Rate Multiple. During this episode, Dave and Ray highlight several leading public, B2B Cloud companies and how their Enterprise Value to Revenue multiples are i...