3 ms·
Those aren’t net new accounts.
by 1123581321 7y ago
Those aren’t net new accounts.
- runako 7y agoAs I indicated: > Factor in whatever churn you want Right, take the $20mm/mo in gross new business & apply your favorite convert rate to that. Then, apply your favorite churn rate to the existing business. You have to pick really pessimistic numbers to get from 2.8mm signups of a $99/mo service to arrive at a $25mm annual revenue number. Specifically: ~.75% of their total claimed signups since 2004. Or ~2.5% of their claimed signups since 2016. (Put another way: if they converted 10% of their signups since 2016, that's > $100mm run rate before accounting for churn.) Basically, to assume they are doing only $25mm annually you have to assume either (as the parallel comment does) they are publicly lying about their number of signups or that they have pretty poor conversion/retention numbers. My guess is option #3: they are doing much more than $25mm annually.