Victor Levitin

You know, we look at the cohorts of Chorn and we see that the larger the businesses are, the more stable they are.

They get more value from the program, from the software, and they stay for longer.

So for us, the obvious solution to this is just going upmarket.

Our CAC is about $100 per customer.

Yes, that's exactly the number.

We don't optimize for the ratio between CAC and lifetime value.

Rather, we look at the function that we look to optimize is during how many months does it take us to return the marketing spend?

And we look to return the marketing spend within no more than five months, with this currently being three months.

Well, it's around $1,000.

Okay, and walk me through kind of how you calculate that.

So we take the average customer, say $30 a month, then we take the churn.

So take 30, multiply it by, say, 25, you get to 700.

Now, our average customers actually pay us more because if you look at the whole...

That's correct.

Yes.

But when you look at our RPU, we look at recent RPU.

Recent RPU is much higher than $30 because, again, we are constantly pushing up market.

I see.

So it's kind of not accurate to take the average, the $4,000.

600 customers and divide them by the total revenue because the customers that we import today pass north of a hundred bucks.