Dave "CAC" Kellogg and Ray "Growth" Rike discuss how a "growth rate" endures for a SaaS company trend over time!Topics covered during the conversation include:T2D3 Growth Model and Mantra from 2015"56789" Growth Model from Metric Brother Dave "CAC" KelloggThe Impact of Growth Endurance decreasing to 65% in 2023 versus 80% in 2021Growth Endurance is the measure of how a company's growth rate endures over time: GE = current year’s growth rate / last year’s growth rate.At an 80% Growth Endurance (2021 value) says that a companies growth rate in the next year will be 80% of the current years growth- example: 70% growth this year would predict 56% growth next yearGrowth Endurance has decreased over the last two years and is NOW ~ 65% (2023)- example: 70% growth this year would predict 45.5% growth next yearGrowth Endurance decreasing from 80% to 65% may not sound that bad but let's look at the impact over 5 years at a $10M ARR company today but...80% Growth Endurance = $189M ARR in Five Years (starting at $10M ARR)65% Growth Endurance = $122M ARR in Five Years (starting at $10M ARR)Using a 6.5x "Enterprise Value to Revenue" multiple that projects a material decrease in Enterprise Value ?80% Growth Endurance = $1.23B Enterprise Value in Five Years65% Growth Endurance = $793M Enterprise Value in Five YearsThe change in Growth Endurance translates into a $437M decrease in EV (at the same 6.5x multiple)?‍♂️ If Growth Endurance has decreased by 15% over the past two years and Customer Acquisition Cost & Growth Efficiency have not improved materially over the past 7 quarters it might be time to change ...The "T2D3" Growth Model suggests the below ARR growth for a B2B SaaS companyGet to $2MNext year: Triple to $6MNext year: Triple to $18MNext year: Double to $36MNext year: Double to $72MNext year: Double to $144MThe "56789" Growth Model suggests the below ARR growth for a B2B SaaS companyYear 5: $10MYear 6:$20MYear 7: $50MYear 8: $75MYear 9:$100MIf you are a fan of B2B SaaS and have a desire or need to stay on top of the most recent trends this episode is a great listen!See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.