The SaaS business model & metrics: Understand the key drivers for success

In this talk, David Skok, author of the now famous SaaS Metrics 2.0 blog post will talk through those key metrics and their impact on the overall SaaS business model.
Wish you were here? Sign up for 2 for 1 discount code for #WebSummit 2019 now: news.websummit.com/live-stream

[@kevin78515]

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)

[@gouribhalerao]

Really great session!! Although couldn't understand what's meant by "Quota" here...especially in the metric Salesperson Unit Economics at 20:15

[@mfrshi]

@@gouribhalerao quota is salesperson’s target

[@christophergrubb3555]

This guy is a total legend. This 20 minutes will carry me for the next 5 years of my life. Soooo thankful for this.

[@chetnathelife]

100% Agreed! This video is a treasure..

[@VDJones]

5 yrs later. Did it serve you well?

[@kevinlevine5543]

This is one of those great training sessions you want to study over and over.

[@bigdata9605]

PHD knowledge right there

[@ahadulislam7185]

No

[@peterkjerfve4237]

Thank you! Supervaluable, well structured and eye opening, and in only 20 minutes!!

[@nimda2sdfsdfsd]

Just Superb! Talk! Truely amazing.

[@ivanwes7916]

Brilliant! The most valuable 20 mins ever!

[@Scantaxx88]

Such a great talk.

[@dsuthapong]

I can't belive this is free! This is so helpful and awesome. Thank you so much!!!!

[@bocus5263]

Super useful and clearly explained. Thank you very much !

[@javiertrujillo5016]

So much powerful information in a simple presentation

[@saedam3513]

An immense wealth of information wow. Amazed. Thank you.

[@arj123sub]

Great video. and must watch to get the context of SaaS growth

[@ImranKhan-tm2gv]

Awesome talk. To the point and so much information

[@firatlokman]

Great explanation, thank you Mr. Skok

[@jessenielsen69]

Amazing presentation. Just what I needed! What are other great videos that teach about the SaaS business?

[@angeloveeran7793]

This was simply brilliant and needed so badly in understanding the matrix of SaaS

[@bootlabstechnologies5889]

Brilliant Session!

[@MURILAOBONITAO]

Excellent, high level!

[@nash.p9781]

David Skok, you are magnificent.

[@fabulateHQ]

Spoken like someone who knows it inside out! 👏

[@mannn2403]

very informative and useful session

[@vinaykumarsingu5130]

Before this, there were many blindspots for me in Saas business model. But this talk cleared lot of questions for me

[@jacoblowder6270]

Great video, great content. Thank you!

[@brucemunro9555]

Awesome! Thanks ! Distilled simplicity.

[@gracelandbase]

Best video on SAAS metrics

[@kristofferkliemann7286]

Amazing!!!

[@aslannoureddine9923]

hands on ! super useful !

[@massiveaction6217]

I am 2 hours new to this and find thus very intriguing.

[@ashishanand3004]

Wow! Blown my mind.

[@Max-bh8tg]

What a smart guy

[@nimda2sdfsdfsd]

is thre a link of the video of the talk he is mentioning link please

[@eliedaccache8438]

Mind bender!!

[@Hhhhsh94]

Thank you

[@amarnathreddy6507]

An eye opener session for people who are into SAAS.

[@luisdariodavilamartinez5538]

Amazing stuff

[@JuanPerez-zc1om]

Nice video teaches ways to improve your business.

[@blakeharrold8133]

Brilliant

[@issaaczala5125]

Amazing.... Excellent..

[@yunusmj6066]

Incredible

[@salvatorevaldez_]

what a great talk

[@agustincortes1236]

Amazing video!

[@vegetossgss1114]

very interesting thanks!

[@pault.5241]

Great Video!

[@olaogunnusi4130]

You Sir are a "God" amongst men

[@mathieusimard]

Do you have a template for those metrics

[@sangeetakhurana9635]

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.

[@denniszenanywhere]

Amazing. Anyone who has tested this approach?

[@AlonAvramson]

Equations are simple but the parameters are complex.

[@tyleramazonpl1859]

Good for SDR BDR AE Sales people?

[@realitynuggets6204]

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.

[@mgill404pfft]

where's the second talk he mentions at the end of the video?

[@gouribhalerao]

Really great session!! Although couldn't understand what's meant by "Quota" here...especially in the metric Salesperson Unit Economics at 20:15

[@mailrgn]

means sales target

[@ruixueli8998]

Can someone tell me who’s this guy? It’s amazing

[@ruchisingh8517]

what's his blog name?

[@JoeDustin]

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.

[@shivam_trivedi]

What do you mean by "Average Deal Size" in funnel section ?

[@AhmedKhan-dv6kf]

Shivam Mohan Trivedi deal as in one sale

[@DineshChauhan-wb2jr]

Nice ppt

[@Silent_Control]

19:07 Skipped that part?

[@rak111esh]

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.

[@angeloveeran7793]

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

[@rak111esh]

@@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.

[@kleinesmaccify]

The other infamous Lord Kelvin saying is “heavier-than-air flying machines are impossible” :)

[@Admates]

Everyone is saying life changing or amazing when he just basically said: more sales ppl = more money. good salesperson = more money.

[@TheGoodContent37]

Sell cheap drug, even at a loss and then when they are addicted charge higher giving less. It's not rocket science people.

[@somuroy4633]

the quality of presentation is so poor, a 3rd grader makes better deck. Quite diasppointed

[@RakeshSharma-yd8hk]

Brilliant