Hua: Apptimize's annual revenue churn was over 20% last year
Nancy Hua · 1083 How she 2x ARR yoy in mobile testing space to $6m in ARR · Jul 12, 2018 · at 12:17
Nancy Hua, CEO of Apptimize, explains to Nathan Latka that unmonitored customer usage previously caused high revenue churn.
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“I think it was, like, 20% A little more than 20%, even, I'm remembering.”
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More from Nancy Hua
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“I think that these multiples are just, like, really random. Cause they're just kind of like in SAS, I've seen anything from like a five X to like a 40 X, you know?”
Hua: Apptimize ramps sales reps for one quarter before full quota
“They're off their, they're on their ramp quota for the first quarter. And then after that, they're on a full quota.”
Hua: Churn is a lagging metric that creates false security
“And so we started tracking usage and different adoption metrics and that gave us way more leading indicators because turn is the ultimate lagging indicator where you're like, you feel safe just ignoring it for a long time because it doesn't come up until final…”
Hua: Apptimize will be cash-flow positive by early 2019
“The target, it sounds like it's going to take like to the beginning of next year, then we'll be pretty cashflow positive.”