Jonah Goodhart

I liked the idea that a hundred percent of your customers staying with you is the top that you can have.

And then what are you lower than that?

Cause some people are going to cancel for a variety of reasons.

And that was how we always looked at Jonah.

I wouldn't like that because I think it makes it harder to understand what's fundamentally going on with the business.

And so all that CEO reports in that case is we're net 130 or we're net 140.

And what you don't understand is that a piece of the business is actually churning.

Well, not just per logo, but I would do it based on revenue and customers.

And I would look at it as a clean number.

So what I tell entrepreneurs, in fact, I had a call with somebody today, literally take what the contracts are that are written for a particular quarter, go back a quarter or two.

The contracts that you had written as of the start of that quarter, how much money were those specific customers going to generate for that quarter?

And then how much money did they actually end up generating?

That was your churn for the quarter, whatever you netted out from that group.

And if you were to annualize it, times it by four, and you get a sense of what your annualized churn is.

Separately, if you want to look at what did you add in bookings, what was new versus expansion, that's great.

And I think you can look at all of those metrics as an important part of understanding in business.

But I think people...

oftentimes confuse those things and it makes it hard to make sense of a business so getting back to your question was were we a sas company we absolutely were and one of the first things that we did with mayfield back in 2012 is we started thinking about our pricing model and we said all right we're gonna have to walk away from uh certain deals we're gonna have to walk away from someone who says hey we will write a fifty thousand dollar or a hundred thousand dollar check

in order to do business with you, but it's going to be a one-time deal.

And we said, no go, not interested.