TAKEAWAY: GUARDRAILS FOR VALUATION Representative SaaS Business ($15mm ARR) 1 2 3 4 5 CARR CAC PAYBACK CHURN CLTV / CAC CASH FLOW % Fwd Growth (Mos) (Monthly) (New ARR/Mo Burn) Good 50% 24 1-3% 3x <1x Better 50-100% 12 - 24 <1% 3-5x 1x Best 100%+ <12 Net negative 5x+ >1x www.bvp.com/cloud 33