Elena Verna: evaluation

Transcript context

…Let me ask you one question that's on people's minds, I imagine, as you talk about this, just what does retention look like? Yeah. So, retention, really, I look at it in two ways, retention, that it comes as a subscriber retention. So, how much [inaudible 00:12:32] subscribers do we get, and how many of them are we capable of renewing? There's also very important aspect of it is, how many of them can we expand? Because if you can get positive or above 100% net dollar retention, which is super important metric for investors... If you don't know about net dollar retention, please read it up, that's like a superpower to get bigger multiple if you can show NDR that is over 100. And then there's actually engagement retention as well, because that is the leading indicator for how your paid retention is going to look like. For paid retention, I know there is so much on the market of, oh, this is a high product, and it's a leaky bucket, and it has really high churn rates. Although, I shouldn't share, it's not public numbers for us to share actual retention, however, what I can say, it's on par with benchmarks of other B2B SaaS products that I've ever worked at. And I worked with Miro, Dropbox, SurveyMonkey, Netlify, Amplitude, and others. So, are we absolutely crushing with paid retention? No. Are we where most of the other companies are? Yes. Our NDR is quite good because when people build, they want to buy more credits to build. So, we're seeing really good revenue retention, but we're honestly more focused right now on engagement retention than even paid retention because our North Star is just to get as much usage as possible, and we will fix and tune our monetization model afterwards. So, engagement retention, I would say, is a by far bigger priority focus for us at the moment. That is incredibly interesting, and I'm optimistic to hear because of the growth rate. Rarely is growth rate this high and retention is on par with great companies.…

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