As always an extraordinary read. Your work, process and reasoning IMO are second to none.

Thank You for your incredible commitment to the truth and accuracy as well as the explanatory narrative on why these metrics are so important.

My strongest recommendation with humble gratitude for what YOU publish!

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Appreciate the analysis, this is great way to view results. I have 2 questions on the GM CAC Payback calc:

1) The formula presented appears to apply the margin % to S&M expense, is this correct and if so why would the margin % not be applied to the revenue (ARR change) only?

2) Could you expand on your approach to calculating the ARR when subscription revenue is not explicitly provided in the financials? I've tried re-creating the calc for a few of these and am coming up with varied results.


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This was the best concise writing of how to measure company financials with just a few metrics.

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