The biggest vanity metric of the last 10 years has been revenue. Unless you can turn that revenue into profit, you have effectively used VC money to buy business.
Interesting perspective. I'm not sure many would agree that "revenue = vanity" but I do understand your point.
I think revenue growth (say MoM MRR growth) can be important to track, but if you can never achieve profitability you still may not have a successful business (although a lot of "successful" companies aren't profitable.)
100% agreed. It'll be a tough go for many companies.
IMO the more important metrics are around engagement/stickiness, which then leads to revenue. Tracking revenue alone is risky because it doesn't paint a full picture of what's going on.
What your article highlights well is that any metric by itself is useless. You need a system of metrics that quantitatively model your business.
The most terrifying moment for me is when all the metrics are on green - because that means something is going on that I haven’t thought of! (or that my measurement systems are incorrect)
I think that cost-related metrics are going to be super-important in the next 12-24 months.
The biggest vanity metric of the last 10 years has been revenue. Unless you can turn that revenue into profit, you have effectively used VC money to buy business.
Interesting perspective. I'm not sure many would agree that "revenue = vanity" but I do understand your point.
I think revenue growth (say MoM MRR growth) can be important to track, but if you can never achieve profitability you still may not have a successful business (although a lot of "successful" companies aren't profitable.)
Revenue is good. But it’s not the only thing.
“although a lot of "successful" companies aren't profitable” - under conditions of cheap money sure. Let’s check in again in 12 months.
100% agreed. It'll be a tough go for many companies.
IMO the more important metrics are around engagement/stickiness, which then leads to revenue. Tracking revenue alone is risky because it doesn't paint a full picture of what's going on.
What your article highlights well is that any metric by itself is useless. You need a system of metrics that quantitatively model your business.
The most terrifying moment for me is when all the metrics are on green - because that means something is going on that I haven’t thought of! (or that my measurement systems are incorrect)
I think that cost-related metrics are going to be super-important in the next 12-24 months.