As the Subscription Economy continues to grow, a new framework is needed to measure and analyze business health, and provide insight into the entire customer subscription journey. This new framework is powered by subscription metrics: forward-looking metrics — from ARR to churn — that predict business performance. In this session, finance executives from Slack and SurveyMonkey will discuss how best-in-class companies use metrics to drive growth.

1. ≈
Metrics That Really Matter
How To Drive Cross Functional Accountability?

2. “When it comes to tracking
metrics for subscription
businesses, traditional
systems just can’t account
for the whole picture”

3. page
03
Allen Shim, SVP Finance & Operations

4. Background
Slack is team communication software that transforms the way you work with the people in your
organization as well as with the applications and tools that you rely on everyday. Simply put for the
modern worker, “Slack is where work happens.”
Joined Slack in 2014 and early on was responsible for all of the business functions which has since
narrowed down to Finance and Business Operations (i.e. G&A plus a couple other areas). Prior to
Slack, early employee at YuMe Inc. and eventually helped take the company public in 2013. Started
off in financial services in investment research in NY before moving to the Bay Area to work in finance
at Yahoo.

5. Making sense of a broad TAM opportunity
page
05
SMB
Large
Enterprises
1 - 500
Emp
4,000+
Emp
Enterprises 501 -> 4,000
Emp

6. Slack’s business model
page
06
Generate Interest
Grow Customers
Add New Customers
Engage Customers
Monetize Customers
Leads
(Signup Flow)
Created Teams
Activated
Work Teams
Paid
Teams
Expansio
n
New Business
“Land”
Existing Business
“Expand”

7. Slack’s (hybrid) business model
page
07
Leads
(Signup Flow)
Created Teams
Activated
Work Teams
Paid
Teams
Expansio
n
Sales Handoff
Org level
Upgrades
Ramp
Adoption

8. Accelerating organic adoption
page
08
Q1 iACV
$275K
Q1 iARR $72K

9. How we measure and track this
page
09
Top of Funnel
Created Teams
Activated Teams
KPI’s
NPS / CSAT
DAU / WAU / MAU
Paid Teams
Paid Seats
Seats per Team
ARR per Seat
Net Expansion
Financial
ARR
ACV
Billings
Deferred Revenue
Free Cash Flow

10. page
010
Karim Damji
Vice President, Finance
SurveyMonkey

11. virality is the foundation of our business

12. our freemium self-serve business model and metrics
Free Users
Paid Users
Churn
Ending
Subscribers
AOV / ARPU
• Channel – Organic vs. Paid; LTV:CAC Ratio
• Free to Paid Conversion
• Mix – Annual vs. Monthly; 1st Time vs. Recurring; US vs. Intl; Mobile vs. Desktop
• Upgrades
• Mix – Annual vs. Monthly; US vs. Intl
• Retention rates – Annual vs. Monthly (1st term, 2nd term)
• New vs. Renewal
• Annual vs. Monthly
• US vs. Intl

13. accelerating virality within organizations
Product
improvements
and new
features
Active Users
Sharing /
Collaboration
Surveys
Deployed
Survey
Responses

14. page
014
Parveen Nandal
Vice President, Finance
Zuora

15. our business
model
page
015
0%
100%
50%
ARR
Break
Even
Invest in Field & Grow
FasterOR
Recurring Expense Growth Expense
Sales,
Marketing, Customer Success
Sales,
Marketing, Customer Success
COGS, G&A,
R&D
ARR
Growth Expenses
• Incurred to maximize ARR
• Sales, Marketing and Customer
Success
Recurring Expenses Margin
• Incurred to support existing install
base and organization
• COGs, R&D, G&A

16. key metrics
page
016
• ARR
• Growth Efficiency Index
Growth Costs / increase in ARR
• Recurring Expenses Margin
1- Annualized Recurring Expenses / ARR

17. Framework
To Measure and Drive Growth
page
017
Retention Rate
• Pipe generation
• Conversion by stages
• Demand gen
efficiency
• Go-Lives
• Time to go-live
• Implementation churn
• Margins
• CSAT scores
• Percent uptime
• Volume thru platform
• Ticket resolution time
• Sales velocity

19. thank you.