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(From scratch build-up in order to demonstrate key relationships)
Drivers Assumptions
Churn rate of 10% All deals, both new and renewal, are on
Sales starting at 2.0 per quarter Every order comes on the last day of th
Growing at 15% QoQ Thus revenue (Qn+1) = ending ARR (Qn
Copyright Kellblog by Dave Kellogg, under a Creative Commons Attribution-NonCommercial 4.0 International License
3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
19.1 23.4 28.5 34.0 40.5 47.9
4.6 5.3 6.1 7.0 8.1 9.3
0.3 0.3 0.5 0.6 0.7 0.8
23.4 28.5 34.0 40.5 47.9 56.4
4.4 5.0 5.6 6.4 7.4 8.5
both new and renewal, are one year in duration and prepaid
er comes on the last day of the quarter (so no in-quarter revenue from any booking)
nue (Qn+1) = ending ARR (Qn) / 4
"Billings"