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patio11's profile
Patrick McKenzie
Patrick McKenzie
Patrick McKenzie
@patio11

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Patrick McKenzie

@patio11

I work for the Internet, at @stripe, mostly on accelerating startups. Opinions here are my own.

東京都 Tokyo
kalzumeus.com
Joined February 2009

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    1. Patrick McKenzie‏ @patio11 3 Apr 2015
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      Replying to @patio11

      9/ This is the cheapest source of funds available anywhere, one reason all sane SaaS businesses love annual prepays.

      1 reply 1 retweet 8 likes
    2. Patrick McKenzie‏ @patio11 3 Apr 2015
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      Replying to @patio11

      10/ You book a liability for unearned revenue which gradually decrements over the course of the year. This makes SaaS look overleveraged.

      3 replies 1 retweet 2 likes
    3. Patrick McKenzie‏ @patio11 3 Apr 2015
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      11/ Larger companies have complicated computer programs which handle revenue recognition, often on a per-day basis over contract term. Yep.

      1 reply 3 retweets 4 likes
    4. Patrick McKenzie‏ @patio11 3 Apr 2015
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      12/ My favorite example is virtual goods, where GAAP says you have to pro-rate revenue for e.g. a magic sword over expected avg player life.

      1 reply 4 retweets 10 likes
    5. Patrick McKenzie‏ @patio11 3 Apr 2015
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      13/ ACV means annual contract value or average contract value. Chiefly in SaaS it quickly communicates your market and sales strategy.

      1 reply 3 retweets 8 likes
    6. Patrick McKenzie‏ @patio11 3 Apr 2015
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      14/ If you say ACV $250 / $5k / $50k / $1.5 million then SaaS folks can pretty much draw out your entire org chart using only that info.

      2 replies 5 retweets 13 likes
    7. Patrick McKenzie‏ @patio11 3 Apr 2015
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      15/ For example, if your ACV is in the $50k+ budget, I will bet dollars to donuts that Sales is bigger than Engineering and has more pull.

      2 replies 3 retweets 13 likes
    8. Patrick McKenzie‏ @patio11 3 Apr 2015
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      16/ LTV (lifetime value) is a *prediction* of average revenue (across all customers or a segment) over customer lifetime.

      1 reply 1 retweet 6 likes
    9. Patrick McKenzie‏ @patio11 3 Apr 2015
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      17/ LTV is really easy to estimate (average billing per interval divided by churn per interval). It should be tattooed on your consciousness

      3 replies 2 retweets 11 likes
    10. Patrick McKenzie‏ @patio11 3 Apr 2015
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      18/ LTV lets you make consequential decisions about e.g. ad spend (rule of thumb: cost of acquisition < 1/3 LTV => good), sales effort, etc.

      2 replies 1 retweet 15 likes
      Patrick McKenzie‏ @patio11 3 Apr 2015
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      19/ Think that's it for the moment. Have questions? Fire away.

      10:53 AM - 3 Apr 2015
      • 3 Likes
      • Matt Nunogawa Patrik Ragnarsson Guillaume Ceccarelli
      9 replies 0 retweets 3 likes
        1. New conversation
        2. Greg Robertson‏ @gregrobertson 3 Apr 2015
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          Replying to @patio11

          @patio11 We you "report" monthly revenue are you counting all the revenue from an annual contract or just 1/12?

          1 reply 0 retweets 1 like
        3. Patrick McKenzie‏ @patio11 3 Apr 2015
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          Replying to @gregrobertson

          @gregrobertson For revenue, one should report 1/12th prorated over each of the twelve months of the contract.

          1 reply 0 retweets 1 like
        4. 6 more replies
        1. New conversation
        2. Beeminder‏ @bmndr 3 Apr 2015
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          Replying to @patio11

          Beeminder Retweeted Stripe

          @patio11 You've recommended @churnbuster before. Does @stripe's new auto-update feature (https://twitter.com/stripe/status/557990123414245376 …) partly/mostly obviate it?

          Beeminder added,

          StripeVerified account @stripe
          #shipped: saved cards stay working even when the card gets replaced. Less churn for you, less typing for the world. https://stripe.com/blog/smarter-saved-cards …
          1 reply 0 retweets 1 like
        3. Churn Buster‏ @churnbuster 3 Apr 2015
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          Replying to @bmndr

          @bmndr @patio11 So, many customers were in the auto-update beta last year and it's *great*, we love it! But failures are still a real pain.

          1 reply 0 retweets 0 likes
        4. 1 more reply
        1. Travis Northcutt‏ @tnorthcutt 3 Apr 2015
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          @patio11 please do these tweetstorms more, on whatever subject you like.

          0 replies 0 retweets 2 likes
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        1. Dillon Zhang Forrest‏ @dillonforrest 3 Apr 2015
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          Replying to @patio11

          @patio11 no questions, but thanks for sharing. most useful tweet storm i've seen in maybe ever. cheers! 🍻

          0 replies 0 retweets 1 like
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        1. New conversation
        2. Beeminder‏ @bmndr 3 Apr 2015
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          Replying to @patio11

          @patio11 So many questions! (Also I love how I could read this whole mini-essay on my pebble watch :)) 1. Recommendations like @Baremetrics?

          1 reply 0 retweets 0 likes
        3. Beeminder‏ @bmndr 3 Apr 2015
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          Replying to @bmndr

          @patio11 We need one that works if you don't use Stripe subscriptions. Most awesome-looking ones assume that. eg @HookFeed @FirstOfficer_io

          1 reply 0 retweets 0 likes
        4. 1 more reply
        1. Derek Clark‏ @clarky07 3 Apr 2015
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          .@patio11 why does Riot insist on giving blue side the camera angle advantage in LoL :-P

          0 replies 0 retweets 0 likes
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        1. Dieter Van der Stock‏ @dietervds 3 Apr 2015
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          Replying to @patio11

          @patio11 That was a great and quick read, thanks!

          0 replies 0 retweets 0 likes
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