tag:blogger.com,1999:blog-36664346.post5593520772103131680..comments2024-02-11T01:01:22.792-08:00Comments on Cracking The Code: SaaS business metrics: why are they different?Philippe Botterihttp://www.blogger.com/profile/07026200487300080349noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-36664346.post-10777912761475913852009-12-16T18:56:28.445-08:002009-12-16T18:56:28.445-08:00Nice post! I also read your white paper. For CMR...Nice post! I also read your white paper. For CMRR, are you saying that you include deferred (unearned) revenue when you say "Purchase Orders for future recurring revenues?" If so, is this double counting? Other words, does CMRR include revenue that has not been recognized? Sorry, I'm just a little confused.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-36664346.post-16405908676009932092008-02-17T15:13:00.000-08:002008-02-17T15:13:00.000-08:00The CMRR chart is quite interesting. Given the imp...The CMRR chart is quite interesting. Given the importance of existing contracts, does anyone know roughly what percentage of sales budgets is for farming these existing accounts versus hunting for new accounts?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-36664346.post-31545441117131130712008-01-08T19:40:00.000-08:002008-01-08T19:40:00.000-08:00The "revenue" in the MRR/CMRR definition is the mo...The "revenue" in the MRR/CMRR definition is the monthly subscription revenue, different from billings. You can use MRR and CMRR independently from your billing agreements (which can be monthly, quarterly, annually...). <BR/>To answer your question on the best billing approach, I would say that cash is king: the longer the subscription contract (I have seen up to 5 years) and the higher the upfront payment, the better.Philippe Botterihttps://www.blogger.com/profile/07026200487300080349noreply@blogger.comtag:blogger.com,1999:blog-36664346.post-4543818362375992652007-12-18T07:59:00.000-08:002007-12-18T07:59:00.000-08:00The SaaS valuation you proposed assumed a monthly ...The SaaS valuation you proposed assumed a monthly billing relationship. Is there a SaaS valuation model for *annual* subscriptions? Would you think it is better valuation-wise to be all monthly billing or have some mix of annual subscriptions (or does it hurt the valuation for the SaaS provider to take upfront cash for annual subscriptions?Scott Whartonhttps://www.blogger.com/profile/12079952473684839423noreply@blogger.comtag:blogger.com,1999:blog-36664346.post-77922048988327919692007-07-07T22:26:00.000-07:002007-07-07T22:26:00.000-07:00Hi Philippe,Did you catch the article on SaaS by y...Hi Philippe,<BR/><BR/>Did you catch the article on SaaS by your alma mater?<BR/><BR/>http://www.mckinseyquarterly.com/article_abstract_visitor.aspx?ar=2006<BR/><BR/>cheers,<BR/>harshHarsh Shahhttps://www.blogger.com/profile/11064924801948284495noreply@blogger.com