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 Churn Rates

One of the most interesting parts of the report and this episode is that expansion growth rates of software will increase for those with embedded generative AI. In addition, the adoption of Generative AI solutions will be spread across three primary modalities of Gen AI software including:

• Native Generative AI Point Solutions
• Broader platforms with embedded Generative AI
• Internally developed Generative AI software

If you are a traditional SaaS company and are looking to navigator the unchartered waters of the Generative AI software era, the McKinsey report and this episode are great sources of ideals and insights.

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

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 value" in the stock market
• Examining Valuation Multiples What They Miss, Why They Differ, and the Link to Fundamentals
• How Cash and Debt impacts Enterprise Value
• EV/EBITDA vs EV/FCF vs EV/Revenue Multiples

An inspiration for this episode was from a paper written by Michael Mauboussin with the title: "Examining Valuation Multiples What They Miss, Why They Differ, and the Link to Fundamentals". You can read the paper by clicking here.

If you are a SaaS professional or even just interested in learning more about how SaaS companies are valued, this conversation is full of interesting insights and details on the concept of SaaS company valuations.

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

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 opportunities include:

• Pipeline Generation
• Pipeline Conversion
• Win Rates + ACV
• Customer Retention
• Customer Expansion

CAC and Growth discuss some of the key metrics that measure the performance and health of each of the above areas. In addition, as two former B2B SaaS operators, they cannot help but dive into some of the key issues and solutions that go beyond "trouble shooting" and move into potential solutions to enhance revenue growth efficiency and improve performance.

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

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 Retention
• Sales and Marketing expenses as a % of Revenue
• ARR per Employee

The full report and interactive benchmarking tool can be reached at: benchmarkit.ai/2024benchmarks

If you work in the B2B SaaS or Cloud industry this episode is a must listen!

NOTE: Benchmarkit was founded by SaaSTalk co-host, Ray "Growth" Rike"

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

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 Pipeline Coverage Ratio when deals are pushed into or pushed out of the quarter
• How is Pipeline Coverage Ratio different in a 30 day sales cycle versus a 180 day sale cycle
• Bottom line - why Pipeline Coverage Ratio is NOT as simple as 1/Win Rate

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

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 2022)
• Quota Assignment by ACV
• Quota Achievement
• Renewal and Expansion Responsibilities

If you are leading a B2B SaaS sales team or have one in your company that directly impacts financial performance this is a must listen episode of SaaS Talk with the Metrics Brothers!

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

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 trends - a return to a time long ago in a land far away
• The value of Growth vs Profitability - the trends and the facts
• Down Rounds, Shut Downs and No Rounds

Click here to get the report and to follow along Dave and Ray's conversation - as they sometimes go off the deep end!

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

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 Income

The Metrics Brothers also discuss the Rubrik transition to a recurring revenue model and the two-tier stock structure used to ensure voting control remains with the founders and early investors.

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