Originally Posted by
Santiago
Just read the presentation for a second time. I'm not expert on SaaS companies, as some of you may be, but I've always thought (and posted here) that the results when based on an online subscription model need to be read differently to the results of other types of company. That's why I take a dim view of people who only note cash burn, without providing the context (what the company is buying with that cash burn). In that sense, and reading them again, I reckon the key metric to watch is LTV (life time value)- LTV per customer has grown from $1700 to $2100 and total LTV of all current customers has gone from $823m to $1.5b (based on current LTV- remember this is improving so that 1.5b of value currently held in existing customers is likely to increase, along with any increase resulting from additional customers). That's an 83% increase in value that the company can reasonably expect to extract on current numbers from their investment. The subscription model accrues 100% of acquisition cost in the current year and delivers the value of that investment in future ones, which I think tends to distract some on this thread who don't understand the bigger picture. As such, on a second reading I'm seeing a very good result- an 83% growth in "stored value" while the value per customer is also improving, and new customers are being added.
.