Rob Bernstein

So if you're sort of over one on SaaS magic number, you're under pressing into the market, you're below 0.5, you're kind of risky, and you could argue maybe even buying the business.

So you could stay at kind of 0.75,

you know, if you're a little over efficient, invest in longer term payback areas like new markets, new geographies, new product lines.

If you're below, you know, you should kind of slow down and figure out if the product market fit is starting to, uh,

you know, degrade.

So that's the way I've looked at it.

Yeah, I mean, there's a number of different ways to do it, but effectively you take, you know, you take the current revenue this quarter minus last quarter.

So you see how much new revenue did you just create?

And then you divide that by the sales and marketing costs of the quarter before.

Now that assumes it's a roughly quarter sales cycle, but you could take that out by doing

trailing 12 months magic number, which takes out any kind of confusion or seasonality or anything that presents itself.

You're basically trying to assess how much sales and marketing does it cost you to get that incremental dollar of recurring revenue.

And if that ratio stays within the bands I talked about, you're in a good spot.

You just don't want to be, again, too dilutive or too much missing the opportunity.

We've looked at that, but no, no, I haven't.

Not during those quarters, we didn't, no.

Our gross margins have carefully expanded also for about 34.

I mean, they were kind of 30% now, you know, we're touching 70%.

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