How do you measure the true value of a subscription business? A traditional GAAP financial analysis can’t measure the health of a subscription business because it doesn’t recognize the value of subscription revenue. Revenue acquisition costs are front-loaded and usually high for fast-growing subscription companies. In addition, revenue often accrues over the life of the customer. That means you need to weigh the true cost of acquiring new revenue to find the heartbeat of your business.
Listen to this webinar to learn techniques and benchmarks that will help you assess how to measure, analyze, and understand subscription products and businesses.
Recorded Apr 23, 2014
After listening to this event you should be able to:
- Effectively measure the success of a subscription-based business
- Understand why traditional financial metrics (GAAP) are inadequate for subscription businesses
- Benchmark your subscription business to help you make profitable decisions
Iain Hassall - VP of Finance and Corporate Controller @ Zuora
Dave Key - Managing Director @ Cloud Strategies
Ernie Humphrey - Educational Programs Leader @ Proformative