Of course this can be abused (if you give a discount for the whole first year you shouldn't subtract from MRR), but there's no one size fits all policy here.
Also, any discount subtracted from MRR needs to show up in COGS, and and VC worth his salt will find it there.
a discount for the first month (on a once coupon) or the first 3 months (a repeating coupon) SHOULD be subtracted from MRR.
Otherwise, you have to record an expansion a few months in when the customer starts paying their contracted monthly price...
There's not (necessarily) anything wrong with this.
Stripe as 3 coupon types: once, repeating, and forever.
Forever coupons clearly shouldn’t be subtracted from MRR (and Stripe doesn’t give you that option).
Once and repeating are more complex. If you’re on a monthly plan...
Big learning from the past 24 hours?
You can configure Stripe to report MRR in this deceitful way with the flip of one switch
Founders can export juiced MRR waterfalls directly from Stripe
VCs look at Stripe exports in diligence
This trick is widely known
via @mfts0
Sure it’s not revenue, but cARR is a useful metric. You want to know the terminal value of your contracts. But it can’t be the only metric.
One of my favorite (original) metrics is the BS Ratio.
BS Ratio = cARR / ARR
1.0 - 1.2: You're doing fine
1.2 - 1.5: Getting questionable
> 1.5: Flee for the hills
@GustoHQ Is a great example of how to not do AI support.
High volume slop. Tons of hallucination. Harder than ever to reach a real person.
Bearish.
@SaaSGrid_HQ has saved countless hours by starting on Clerk day 1
Hope to see lots of you at @SaaStrAnnual!
Find us @saastr next week at Booth S011 where we'll have SaaS metrics Jeopardy and be handing out some great SaaSGrid swag as prizes! 👀🧢
Check out everything we've been up to at @SaaSGrid_HQ this quarter!
Lots of fun SaaSGrid updates in our Q1 update! 🎉
🔎 Smarter filters and drill-downs
📖 New case studies
👩🏻💻 Expanding the team
Check out what's new in our latest blog post:
saasgrid.com/post/enhanced-d…
Ethan Ruby retweeted
We just released our latest case study with @BranchingMinds 🎉
With @saasgrid_hq , they have complete visibility into their data through customizable dashboards, real-time SKU-level tracking, live HubSpot syncs and more.
Read the full case study on our site - link in comments!
@saasgrid_hq and @HubSpot are better together!
I'm thrilled to deepen our relationship with HubSpot as an official partner, and bring our customers real-time pipeline, ARR, and retention metrics.
SaaSGrid is now live in the @HubSpot App Marketplace!
With this integration you can:
✅ Sync HubSpot data to SaaSGrid automatically
✅ Track key SaaS metrics in real time
✅ Connect other sources like Stripe & QBO for a single source of truth
Link in the comments!
Is SaaS dead?!?!
You can probably guess my answer. I wrote about one of the dumbest takes going around the internet these days (and that's really saying something): ethanruby.substack.com/p/is-…
#VivaLaSaaS
New blog, 'The Inputs Driven CFO': ethanruby.substack.com/p/the…
Throughout my time at Craft and @saasgrid_hq I've gotten to work with hundreds of SaaS CFOs. Many of them are inspiring leaders, who go far beyond just reporting the numbers and actually steer their company towards improved performance. (Others... not so much).
This blog is my attempt to distill what I think the mostt effective CFOs have in common.
SaaSGrid's full suite of sales pipeline metrics is now out of beta! Super proud of our team for all their hard work making this happen.
Our vision is for SaaSGrid to be the end-to-end source of truth for every dollar in your business. By coupling sales metrics with our existing ARR, retention, efficiency, and billing metrics, we're now making that a reality.
Read more here: sacks.substack.com/p/the-pip…
1/ It's a big day at SaaSGrid: we're launching our sales pipeline metrics module, our biggest product release ever!
@DavidSacks and I wrote blog about why and how you should be tracking your sales pipeline metrics: sacks.substack.com/p/the-pip…