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Your annual revenue growth rate + your operating margin should equal 40% My immediate reaction: So I guess I need to cut Tarsnap's prices and slow its growth rate? On further thought, I suspect "should equal" should be "should equal or exceed".
Tarsnap is doing awesome. Keep up the good work!
So, if the market (ie mobile payments) is growing 50% YoY and the company is only growing at a rate of 25% that's actually pretty bad.
Maybe I'm missing something important, but I don't see any rationale behind this. What makes 35% or 45% worse than 40%?
Why is pi ~3.14159?
Maybe I'm missing something important, but I don't see any rationale behind this. What makes 35% or 45% worse than 40%?
It might be better seen as an observation of a quality of a good SAAS business. Maybe no one knows. Why is pi ~3.14159?
I think this rule is a nice generalization overall but for my money I would discount natural segment growth from the company's year on year. So, if the market (ie mobile payments) is growing 50% YoY and the company is only growing at a rate of 25% that's actually pretty bad.
I think this rule is a nice generalization overall but for my money I would discount natural segment growth from the company's year on year. So, if the market (ie mobile payments) is growing 50% YoY and the company is only growing at a rate of 25% that's actually pretty bad.
Would you always expect to grow at a rate higher than natural segment growth for a "good" company?
Earlier quoted context omitted.
Some go to school to learn.
You don't need to go to school to learn, so if it's just learning you're interested in school isn't a very good investment.
Earlier quoted context omitted.
It's not user growth -- it is revenue growth. If you've got a hockey-stick curve for revenue and you're losing money, that's not necessarily a problem (within reason). At some point you can start spending less on user acquisition/marketing and you'll go from losing money/growing fast to profitable/growing slower.
This explains even more. I've noticed that a lot of startups delay making any revenue, and that this might not be for bad reasons, because plenty of companies start to really suffer once they start making revenues (but fall short of what they "should" be seeing and how has they "should" be growing) not because there is anything wrong with them as businesses, but because their ADD investors lose faith and interest. So…
It's advantageous to remain in the mystery-land of hype and unrealistic expectations as long as you can keep drumming up easy investor money.