Evaluating Financials + Key Metrics

What is this?

To go in depth on the financials of a business you should think about Summary Learning: The Financial Model. But it's important to understand what the key metrics are you want to have in mind when evaluating a business. For some businesses the most important metric might be net dollar retention or customer acquisition cost

You'll need a lot more than the three financial statement to get the full picture of how a business is doing. Aside from dollar-based numbers, there is a TON of important metrics that are just as important.

• Retention, Engagement & Churn
• https://a16z.simplecast.com/episodes/retention-engagement-metrics-cohort-analysis-platforms-marketplaces-zKgUegIs
• https://podcasts.apple.com/us/podcast/good-churn-vs-bad-churn-by-magiclab-vp-of-product/id1219400787?i=1000468311267
• Dollar-based retention, logo-based retention
• Unit Economics (LTV/CAC)
• Annual recurring revenue (ARR) growth
• Margins

Tips & Tricks

• Practical "how-to's"

Recommendations

• Leader board of best content we've found
• Open to replacing it as we find better stuff