Logi Analytics CEO Steven Schneider explains why the company avoids traditional LTV and CAC formulas when measuring unit economics.
Opinion
Schneider: VC-Funded Analytics Startups Gamble Cash on Unsustainable Customer Acquisition
“One of the challenges we have in the broader analytics space is you have a lot of companies that raise the VC funding, play the roulette wheel, And just spend a lot of cash to do new customer acquisition without necessarily regard to the economics or building …”
Assertion Partly supported
Schneider: Domo Raised $600M and Went Public at a Loss
“Domo is a competitor in our space that raised, I think, six hundred million dollars went public. And it's trading at last I checked less than that. And they certainly went public for a net loss for their investors.”
Assertion Not checkable as stated
Schneider: Logi Is Only Scaled Vendor Focused Solely on Embedded Analytics
“We're the only company of scale that focuses on that use case. Most of our competitors in the space go after direct use cases, go after wide industries they go after any kind of operational type improvement use case they can. We're the only ones out there that…”
Prediction Not checkable as stated
Developers Will Assemble Best-of-Breed Components Rather Than Building From Scratch
“People nowadays aren't going to build products completely from scratch. They're going to go out and get best of breed components to get to market faster and assemble those things into a modern product stack that they deliver.”
Assertion Not checkable as stated
Logi Analytics Shifted From 50% Perpetual to 95% Term Contracts
“Up until about 20 10 and actually really until recently, and really about the 2015 time frame, about half of our business was perpetual. So we'd sell it, they'd package it within their software application and we'd get a maintenance stream, but it was more of …”
Assertion Not checkable as stated
Logi Analytics Reached Mid-$30M Revenue Across 1,900 Total Customers
“So, so if you go back to the inception of the company, we brought on about 1900 customers. So, so quite a few. We're, you know, from a revenue standpoint, we're mid thirties, just to give you some kind of idea, millions of revenue.”