Tren Griffin @trengriffin I work for Microsoft. Previously I was a partner at Eagle River, a private equity firm established by Craig McCaw. I am on the board of directors of Kymeta. Dec. 14, 2019 1 min read

Here is my favorite chart in the S-1 of Sprout Social:  https://www.sec.gov/Archives/edgar/data/1517375/000162828019012563/sproutsocials-1.htm#sdb8dc66f1d7b4862a42dcb5134b187bf  What clues does this provide about the unit economics of the business? How do these numbers compare to similar companies? Where does a detective trying to value the business look next?

Would you look at cash flow? What do you see?

"LTV of customers and associated customer acquisition costs for a particular year by comparing (i) gross profit from net new organic ARR for the year divided by one minus the estimated subscription renewal rate to (ii) total S&M expense incurred in the preceding year" @d_mccar ?


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