Q1 earnings season for Cloud businesses is now behind us. The 54 companies that I’ll discuss here (which is not an exhaustive list, but is still fairly comprehensive) all reported quarterly earnings sometime between April 29th — June 9th. In this post I’ll take a data-driven approach to evaluate the overall group’s performance, and highlight individual standouts along the way. As a venture capitalist at
I had a question though. Some other websites mention the metric CAC Ratio: The CAC ratio provides insight into the ultimate profitability of S&M investments. It is calculated by multiplying new annualized quarterly revenue by gross profit and dividing by S&M expense for the quarter. A CAC ratio of .5 shows that half of the investment is paid back within a year, and assuming low churn, paid back in full in two years.
Is this the same as gross margin adjusted CAC ratio you mention? The calculation was different so wanted to check.
Great work!! did you do all that manually? quick comment, the quarterly performance vs. consensus graph is flipped for March vs. April (could not find a way to message you)
Very insightful article! Thank you!
I had a question though. Some other websites mention the metric CAC Ratio: The CAC ratio provides insight into the ultimate profitability of S&M investments. It is calculated by multiplying new annualized quarterly revenue by gross profit and dividing by S&M expense for the quarter. A CAC ratio of .5 shows that half of the investment is paid back within a year, and assuming low churn, paid back in full in two years.
Is this the same as gross margin adjusted CAC ratio you mention? The calculation was different so wanted to check.
If SHOP is included, would love to see CHWY and so PTON.
PTON runs monthly subscriptions. It's like AAPL and is a powerful company(S/W and H/W)
excellent analysis! thanks!
Great work!! did you do all that manually? quick comment, the quarterly performance vs. consensus graph is flipped for March vs. April (could not find a way to message you)