Key Performance Indicators Jean Roberson Key Performance Indicators

Key Performance Indicators Jean Roberson

Key Performance Indicators KPIs evaluate the success of an organization or of a particular activity in which it engages. Often success is simply the repeated, periodic achievement of some levels of operational goal (e. g. zero defects, 10/10 customer satisfaction, etc. ), and sometimes success is defined in terms of making progress toward strategic goals

Key Performance Indicators • Quantitative indicators that can be presented with a number. • Qualitative indicators that can't be presented as a number. • Leading indicators that can predict the outcome of a process • Lagging indicators that present the success or failure post hoc • Input indicators that measure the amount of resources consumed during the generation of the outcome • Process indicators that represent the efficiency or the productivity of the process • Output indicators that reflect the outcome or results of the process activities • Practical indicators that interface with existing company processes. • Directional indicators specifying whether or not an organization is getting better. • Actionable indicators are sufficiently in an organization's control to effect change. • Financial indicators used in performance measurement and when looking at an operating index.

What really matters? ? “If you don’t have revenue you are not an entrepreneur” Revenue and Sales Metrics Historical Performance • Contracts • Revenue • Customers • Monthly recurring revenue (MRR) • Annual recurring revenue (ARR) • Revenue per customer • Lifetime Value (LTV) • Churn

What really matters? ? “If you don’t have revenue you are not an entrepreneur” Revenue and Sales Metrics Predictive • Marketing Qualified Leads(MQL) • Sales Qualified Leads(MQL) • Trials • Conversion Rates • Pipeline • Churn • Month over month growth • Increased or decreased revenue per customer

What really matters? ? “If you don’t have revenue you are not an entrepreneur” Revenue and Sales Metrics Customer Health • Trouble tickets • Time to response • Customer satisfaction • Returns • Renewals • Cancellations • Product usage or activity

What really matters? ? “Never run out of cash” Financial • Burn Rate – how much cash are you burning each month – cash from customers less cash expenses • Months of burn – how many months before you run out of cash? • Revenue • Growth rates • Market share • Margin • Cash flow breakeven – when do you stop burning cash?

What really matters? ? “Don’t let great get in the way of good” Product • • Milestones Achieved Product Roadmap Release Schedule Minimal Viable Product (MVP) Customer input What will customers pay? How much will it cost to produce?

How to present? ? “Don’t let great get in the way of good”

Total ARR by Quarter 1000000 900000 800000 700000 600000 500000 400000 300000 200000 100000 0 Q 1 13 Q 2 13 Q 3 13 Q 4 13 Q 1 14 Q 2 14 Q 3 14 Q 4 14 Q 1 15 Q 2 15 Q 3 15 Q 4 15 Q 1 16 Q 2 16 Q 3 16 Q 4 16* * 3 Year Contracts 2 Year Contracts 1 Year Contracts * = Projections

MRR Growth $ 50, 000 120% 15% average month over month MRR growth 110% growth in MRR since October of 2015 $ 45, 000 $ 40, 000 95% 100% 91% $ 35, 000 80% 77% $ 30, 000 64% $ 25, 000 60% 55% $ 20, 000 45% 40% $ 15, 000 32% $ 10, 000 20% $ 5, 000 $- 0% 31 -Oct 30 -Nov 31 -Dec 3 Year Contracts 31 -Jan 2 Year Contracts 28 -Feb 31 -Mar 1 Year Contracts 30 -Apr % Growth from October 31 -May 30 -Jun

Key Metrics – MRR – Customers – Cash Burn 2017* MRR (000’s) 2016* Q 1 16 Q 2 16 Q 3 16* Q 4 16* 360 440 500 650 New MRR (000’s) 60 90 60 150 % Growth in MRR 17% 23% 10% 32% MRR Churn (0%) (2%) 50 59 64 80 Average MRR/Customer 7330 7450 7500 8000 Net Cash Burn (220) (100) (200) Enterprise Customers • *= Projections, • Contracts are billed annually in advance •