Yes, you noticed correctly, in my quarterly earnings analysis, I do not evaluate stock valuation. You can check the "Deep Dives" section, where I analyze companies, including valuation multiples and comparisons with competitors. The last Deep Dive was on Snowflake, and I will soon publish one on $DUOL.
The CAC Payback Period is calculated as: previous quarter's S&M expenses / net new ARR added in the current period * Gross Margin. I use non-GAAP metrics.
The RDI Index is calculated as: quarterly growth in % / (total R&D expenses over the past year / revenue over the past year).
Thanks for answering my previous question.
Overall strong numbers but decelerating revenue makes it harder to justify the premium valuation (although been less premium with the selloff).
I notice your summaries don’t really take valuation into account. Is that part of your evaluation process? Or perhaps a less important factor?
Yes, you noticed correctly, in my quarterly earnings analysis, I do not evaluate stock valuation. You can check the "Deep Dives" section, where I analyze companies, including valuation multiples and comparisons with competitors. The last Deep Dive was on Snowflake, and I will soon publish one on $DUOL.
Great summary. Can you detail how did you calculate
↘️CAC* Payback Period 5.8 Months (-0.5 YoY)🟢
↗️R&D* Index (RDI) 1.41 (+0.03 YoY)🟢
Thank you!
Hi, great question.
The CAC Payback Period is calculated as: previous quarter's S&M expenses / net new ARR added in the current period * Gross Margin. I use non-GAAP metrics.
The RDI Index is calculated as: quarterly growth in % / (total R&D expenses over the past year / revenue over the past year).