The Ledger
Every statement that passed quotation and attribution checks. Mix any filter with any other: certainty 1/5, debate potential 5/5, or both at once.
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Gill: Native SaaS vendors will capture dominant market share from traditional incumbents
“I really believe that the SAS companies really are going to take over a lot of the markets. It's a much harder transition this time. It's not just, I need to build a, the, a similar solution on a new architecture. It's I've got to do that and transform the bus…”
Gill: SaaS sales spending represents investments in future recurring revenue
“Fundamentally, if you're looking at the sales and marketing expense on the P and L of a SAS company, you're comparing that to the revenue this period on the P and L of the SAS company, you're comparing the wrong thing, right? You're comparing an investment tha…”
Gill: Multi-year SaaS contracts provide no extra value over one-year deals
“There's no reason for me to think of a three-year deal as more valuable than a comparable one-year deal. Our retention rates are very high. We're gonna get, We're going to get the second and third year even if even if it's not locked into that initial contract…”
Gill: Wall Street's calculated billings metric for SaaS is not meaningful
“I spend a great deal of time talking to the street about why the calculated billings number is not very meaningful.”
Gill: Legacy software incumbents rarely build successful cloud products in-house
“We see a lot of acquisition, but we don't see a lot of perpetual license companies really growing solid cloud solutions in house.”
Gill: NetSuite customer cohort value expands year-over-year despite attrition
“If you look at a company like, ah, NetSuite at a high, high retention, low churn SaaS company, and you do a cohort analysis, you'll get a, you get a year over year, ah, increase in value of the entire install base of customers. So more than a hundred percent, …”
Gill: NetSuite maintains an 86% gross margin on recurring subscription revenue
“A company like NetSuite has a gross margin on recurring revenue that's 86%, so it's a very profitable annuity.”
Gill: NetSuite reached net income and cash flow positivity during 2009 recession
“Revenue growth slowed for recurring revenue, slowed from in the forties to about 16% in 2009. But that was the year we became net income positive. That was the year we became operating cash flow positive.”