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Most Helpful

I'm here! Few ideas here:

  • General 3-statement accounting questions (impact of D&A across statements, what impacts cash, etc.)
  • General modeling questions (approach to revenue build (% growth, rep-based build, etc.), approach to expense builds and key drivers including fixed versus variable costs, etc.)
  • Lightweight software questions (and don't expect candidates from non-tech groups to know many of these)
    • 3-statement impact of CapEx and CapSW
    • 3-statement impact of deferred revenue // monthly versus annual billing
    • Basic understanding of revenue/ARR modeling and roll-forwards
    • Basic understanding of retention metrics and benchmarks for good/bad (gross, gross punitive, net)
    • Basic understanding of unit economics (LTV/CAC) and sales rep logic (quotas, attainment, turnover/ramping, etc.)
 

very helpful comment, thank you! are there any good resources to learn about saas metrics you can recommend?

 
[Comment removed by mod team]
 
[Comment removed by mod team]
 

My comment was getting underneath the impact of deferred revenue. If someone pays annually upfront, you collect 12 months of payment but only recognize one month of revenue at a time. This creates a deferred revenue balance on the balance sheet that gets unwound each month. If someone pays monthly, the cash received and revenue recognized are the same (if dates line up), so this phenomenon doesn't exist.

 

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