1% IMPROVEMENT IN CHURN = $100M+ IN VALUATION $140 ARR of 3 Different Businesses ARR in Y6 Mult Equity Value $120 $115 $100 1% Monthly Upsell ~$115M 5x $575M $95 (+1% growth; Net NegaZve $80 $75 Churn) ARR $60 $ $40 0% Churn ~$95M 5x $475M (100% renewal + upsell) $20 $0 1%Monthly Churn Y1 Y2 Y3 Y4 Y5 Y6 ~$75M 5x $375M (-1% growth) ARR (0% monthly churn) ARR (1% monthly churn) ARR (1% net negaZve monthly churn) 1% Churn = $20M ARR = $100M in ValuaKon Note: Assumes monthly new bookings increases by $5k per month. www.bvp.com/cloud 22