Renewals Rates Support Sheet, r1.1

7/27/2019 Renewals Rates Support Sheet, r1.1

1/9


2/9

like 3.0 United States License

Renewals Rates

6/30/2013 Count-based, customers 100%

80 Count-based, seats, gross 120%1,225 /seat/year Count-based, seats, net 80%

40 ARR-based, gross 103%

1,200 /seat/year ARR-based, net 69%

Bookings-based, gross 310%

Bookings-based, net 208%

98,000

48,000 Leaky Bucket Analysis

146,000 Starting ARR 120,000

438,000 New ARR 40,800

15% Churn ARR (36,700)

65,700 Ending ARR 124,100

372,300 Notes:

124,100 Gross = including expansion

83,300 Net = excluding expansion

40,800 Bookings = TCV because we are assuming a prepaid deal


3/9

SaaS Renewals Rate Analysis

Copyright 2005-2013 Dave Kellogg and licensed under a Creative Commons Attribution-Noncommercial-

Here are the key metrics I would track

Leaky Bucket Anaysis

Starting ARRNew ARR

Churn ARR

Ending ARR

Renewals Rates

Customers, count-based

Seats, count-based, gross

ARR-based, gross

ARR-based, net

Bookings-based, gross


4/9


5/9

SaaS Renewals Rate Analysis

Copyright 2005-2013 Dave Kellogg and licensed under a Creative Commons Attribution-Noncommercial-Share Al

Here is a supplement that shows the nuance of annual price upflifts.

Arguably, if the contract imposes an increased price ease as opposed to a cap, renewals rates should be calcula

Since the differences are relatively small and since most contracts impose a cap as opposed to an actual increas

Annual increase cap 3%

Multi-year discount 15%

Initial price 1,200

Year 1 Year 2 Year 3 Total

Flat price 1,200 1,200 1,200 3,600

Increased price at annual cap 1,200 1,236 1,273 3,709

Three-year price with discount off flat 1,020 1,020 1,020 3,060

Three-year price with discount off increased 1,020 1,051 1,082 3,153


6/9


7/9


8/9

Alike 3.0 United States License

Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 1632 27 23 20 17 14 12 10 9

renewal rate

ario is 474

neario is 570


9/9

Year 17 Year 18 Year 19 Year 207 6 5 5

Documents

Renewals Rates Support Sheet, r1.1