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Table Table 3 Go-to-market & pricing

Three-Year Financial and Operational Trajectory

Performance DimensionYear 0 (Legacy Seat)Year 1 (Migration)Year 2 (Expansion)Year 3 (Scaled Maturity)
Total Enterprise Accounts8009201,1401,450
Platform Access Fee Revenue (\$12k)\$0\$11,040,000\$13,680,000\$17,400,000
Tier 1 Commit Accounts (\$30k)0480 (52.2%)510 (44.7%)550 (37.9%)
Tier 2 Commit Accounts (\$90k)0290 (31.5%)420 (36.8%)590 (40.7%)
Tier 3 Commit Accounts (\$250k)090 (9.8%)150 (13.2%)240 (16.6%)
Accounts Pure On-Demand (\$0.05/CU)060 (6.5%)60 (5.3%)70 (4.8%)
Committed Usage Baseline Revenue\$0\$63,000,000\$90,600,000\$129,600,000
Realized Overage Revenue\$0\$4,850,000\$12,400,000\$24,800,000
Transitional Grandfathering Credits\$0-\$3,200,000-\$900,000\$0
Total Realized ARR\$28,800,000\$75,690,000\$115,780,000\$171,800,000
Average Revenue Per Account (ARPU)\$36,000\$82,272\$101,561\$118,483
Net Revenue Retention (NRR)103.0%124.5%132.8%138.4%
Gross Revenue Retention (GRR)88.0%91.5%93.8%95.2%
Gross Margin %68.0%76.2%79.5%82.4%
Implied ARR Valuation Multiple6.0x8.5x10.0x11.5x
Enterprise Valuation\$172,800,000\$643,365,000\$1,157,800,000\$1,975,700,000

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Reference & Evidence

Source: Table from this essay. Sources and interpretation are given in the article.