Goodhart: Net revenue retention masks real customer churn in SaaS businesses
Jonah Goodhart · 1468 How Moat Picked $100k ACV, Grew to $50M+ ARR, Exited to Oracle for "$850M" · Aug 1, 2019 · at 9:51
Moat co-founder Jonah Goodhart debates host Nathan Latka on whether net revenue retention metrics distort a founder's understanding of gross customer churn.
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“I wouldn't like that. Cause I think it makes it harder to understand what's fundamentally going on with the business. And so the, all that CEO reports in that case is we're net one 30 or we're net one 40. And what you don't understand is that a piece of the business is actually churning.”
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