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02.28.2020

SaaS revenue per employee

We took a look at the employee count and revenue of 77 publicly traded SaaS companies to determine revenue per employee. The data is below and shows a median of $263k. For newer companies that IPO’d after 2018, the median……

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02.26.2020

Great cohort performance

The holy grail of ecommerce is to grow your cohorts over time. In other words, the customers you acquire today spend even more the following year and year after that, such that your existing customer base is a source of……

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02.25.2020

The founding of Twitter

Recently I read Nick Bolton’s book “Hatching Twitter.” It is the story of Twitter and it is fantastic. Below I paraphrased some of my favorite sections, but if there is any book about startups to read, this is it. One……

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02.24.2020

Profitability isnt a must to exit

I cringe writing that title because we’re sticklers for cash efficiency and achieving cash break even. However, we looked at 123 tech companies at IPO: 87 of them were not profitable (71%) and 74 were not generating positive cash flow……

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02.21.2020

The most important metric in software

Dollar retention is the most important measure in SaaS. There are two ways to measure it: gross dollar retention and net dollar retention. Gross dollar retention looks at how much of the customer base you’ve kept year over year without……

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