Hi Thomas, thanks for this insightful post. Truly helps with the perspective to analyze Saas companies. I am quite new to this field and still working on the fundamentals. So I have a basic question for you. In the example you gave, how did you come up with quarterly revenue of $2.6M, $2.9M, $3.1M and $3.4M? I was thinking of existing $2.5M per quarter + $0.25M per quarter (for each new ACV). That would be $2.75M, $3M, $3.75M, $4.75M for the quarters respectively. What am I missing?
Really great piece, well done
Hi Thomas, thanks for this insightful post. Truly helps with the perspective to analyze Saas companies. I am quite new to this field and still working on the fundamentals. So I have a basic question for you. In the example you gave, how did you come up with quarterly revenue of $2.6M, $2.9M, $3.1M and $3.4M? I was thinking of existing $2.5M per quarter + $0.25M per quarter (for each new ACV). That would be $2.75M, $3M, $3.75M, $4.75M for the quarters respectively. What am I missing?