Biz and Tech Podcasts > Business > Run the Numbers
Run the Numbers is a twice-weekly podcast about financial metrics and business models, designed for ambitious people operating tech startups. It's a collection of things host CJ Gustafson (CFO at Partstech and writer of Mostly Metrics) has learned and thought about in the trenches as a tech CFO.
This show is meant to serve as a playbook of sorts for the stuff CJ wishes he knew earlier in his career, both from experience and from copying people smarter than himself.
Topics frequently touch upon Startup SaaS Metrics, Annual Budgeting, Financial Forecasting, Headcount, Equity, Dilution, and Fundraising – and how all of these drive business performance and growth.
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Last Episode Date: 28 October 2024
Total Episodes: 109
In this episode, CJ Gustafson interviews Lily Yang, CFO of Strava, to delve into the company's business model, growth strategies, and the role of community engagement in driving user retention. They discuss how Strava's business model has evolved as they've moved into diverse activities, demographics, and countries. Lily sheds light on Strava’s growing revenue streams and the impact of brand partnerships in boosting both reach and revenue. She provides insight into the importance of retention for subscription-based B2C businesses, revealing how Strava forecasts for a consumer base marked by variable activity and seasonality. They talk about the conversion rate from free to paid, Strava’s strategy to stay competitive in a crowded digital fitness market, and what’s next for the company. Finally, Lily shares career insights, recounting challenges as a minority in finance, pivotal career-shaping moments, and valuable advice for aspiring finance professionals.If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.—SPONSORS:Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today. Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.NetSuite provides financial software for all your business needs. More than 40,000 companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅, head to NetSuite https://netsuite.com/metrics and get the CFO’s Guide to AI and Machine Learning. Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.—FOLLOW US ON X:@cjgustafson222 (CJ) —TIMESTAMPS:(00:00) Preview and Intro(01:36) Sponsor – Leapfin | Mercury(03:55) The Evolution of How Strava Makes Money(06:47) How Strava’s TAM Has Changed as It’s Expanded(08:36) Strava’s Ideal Customer Profile(11:12) How Strava Works with Run Clubs(12:22) The Role of Brand Partnerships(14:44) B2C Retention(16:25) Sponsor – NetSuite | Maxio(18:55) Gamification(19:59) Active Users and Retention Rates(24:24) Subscription Forecasting and Variability(30:16) Forecasting for Free Users(33:02) Conversion Rates in This Model(34:40) Strava’s International Reach(35:43) What’s Next for Strava(37:12) Staying Competitive in a Saturated Market(40:27) Navigating Biases as a Minority in Finance(42:42) Tips for Positive Self-Talk(44:16) Moments That Have Shaped Lily’s Career(46:50) Long-Ass Lightning Round: Comfort Zones and Running with Bad News(49:23) Finance Software Stack(49:55) Craziest Expense Story Get full access to Mostly metrics at www.mostlymetrics.com/subscribe
Kyle Poyar, author of Growth Unhinged and a leading expert in pricing, packaging, and product-led growth, joins CJ for this episode. Together they explore the evolving landscape of SaaS metrics in the age of AI with a focus on the paradigm shift from access-based pricing to outcome-based models. They also examine success-based pricing and how to attach metrics to these models. The discussion delves into AI’s impact on ARR (annual recurring revenue), questioning its relevance in this new era and the implications of these changes for CFOs, who must now navigate more complex revenue structures and margins. As AI reshapes the industry, Kyle and CJ discuss the potential rise of professional services revenue, which SaaS metrics may fall by the wayside and what new metrics will emerge. This episode provides deep insights into the future of SaaS pricing in the age of AI and the metrics that will define success.If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.—SPONSORS:Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.NetSuite provides financial software for all your business needs. More than 40,000 companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅, head to NetSuite https://netsuite.com/metrics and get the CFO’s Guide to AI and Machine Learning. Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today. —FOLLOW US ON X:@cjgustafson222 (CJ)@poyark (Kyle Poyar)LINKS:Growth Unhinged: www.growthunhinged.com Kyle on LinkedIn: www.linkedin.com/in/kyle-poyar —TIMESTAMPS:(00:00) Preview and Intro(01:50) Sponsor – Mercury | NetSuite(06:05) AI Pricing Versus Conventional SaaS Pricing(09:32) Defining an Agent or “Agentic” AI(12:41) Charging per Work Completed Versus Access-Based(14:51) Usage-Based Versus Success-Based Pricing(16:04) The Challenges of Success-Based Pricing(17:34) Sponsor – Maxio | Leapfin(19:50) Attaching Metrics to Success(26:22) Moving from Recurring Revenue to Reoccurring Revenue(29:03) Establishing Baselines and Fixed Budgets(31:04) The Ability to Prove Strong ROI(34:52) The Limitations of ARR in This AI Model(38:10) Rethinking ARR and How We Use It(39:28) The Future of Professional Services Revenue(43:43) New Positions for People in the Go-to-Market Strategy(47:51) The Effect of AI and the Development of In-House AI Platforms on Renewal Rates(50:39) Which SaaS Metrics Will Fall Away in the AI Pricing World(51:49) New Metrics to Pay Attention To(54:07) Wrap Get full access to Mostly metrics at www.mostlymetrics.com/subscribe
In this episode, CJ sits down with Marc Greenberg, former VP of Finance & Strategy at Pixar and current CFO at Altruist, for a fascinating conversation about his career in finance. Marc sheds light on the complex budgeting process at Pixar and the long lead times, challenges, and seasonality of the movie industry. He explains how decisions are made about sequels and other financial considerations involved. The conversation also covers the acquisition of Pixar by Disney in 2006 and his firsthand experience with Steve Jobs. Marc then discusses his current role at Altruist, a modern vertically integrated custodian built exclusively for RIAs. He touches on key metrics like lifetime value and customer acquisition costs. He also talks about the evolving role of CFOs, the impact of AI on financial operations, and the lessons learned from taking a company public. Marc offers valuable advice on hiring, feedback, and the value of storytelling in the CFO role, before sharing some of the the craziest expense stories we’ve ever heard on the show.If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.—SPONSORS:NetSuite provides financial software for all your business needs. More than 40,000 companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅, head to NetSuite https://netsuite.com/metrics and get the CFO’s Guide to AI and Machine Learning. Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today. Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.—FOLLOW US ON X:@cjgustafson222 (CJ)—TIMESTAMPS:(00:00) Preview and Intro(02:28) Sponsor – NetSuite | Maxio(05:02) Learning the Art of Storytelling at Pixar(08:57) The Most Successful Movies from Marc’s Time at Pixar(10:57) Budgeting for Movies with Long Lead Times(14:27) The Seasonality of the Film Industry(17:44) Sponsor – Leapfin | Mercury(19:41) Merchandise as a Revenue Stream(22:10) Disney’s Acquisition of Pixar and Lucasfilm(24:46) Meeting Steve Jobs(25:26) What Altruist Does(29:15) Altruist’s Customers and LTV(33:20) How Strong Retention Relates to CAC(37:51) Marketing to the Consumer Versus the Advisor(40:23) AI and the Changing Role of the CFO(43:15) Learnings from Taking Blend Public(47:47) Advice to First-Time CFOs(48:36) Qualities That Make a Great CFO(49:29) Feedback, Patience, and Relationships in the Long-Ass Lightning Round(52:43) Finance Software Stack(53:22) Craziest Expense Story Get full access to Mostly metrics at www.mostlymetrics.com/subscribe
In this episode, CJ interviews Naeem Ishaq of Checkr, Inc., and three-time CFO. Naeem shares insights into what a CFO should aim to accomplish in their first 100 days at a new company, including key topics for their first board meeting and the importance of training the board on relevant metrics. The discussion delves into navigating diverse business models, where Naeem unpacks the nuances of forecasting for consumption-based versus SaaS models, including the application of deterministic and probabilistic modeling. Naeem is possibly the first CFO to be a guest on this show that uses AI and large language models significantly in revenue forecasting. He sheds light on how he does this, highlighting the best variables for these models. Having experienced the crypto winter during his time at Circle and the Covid pandemic during his time at Checkr, Naeem also gives helpful advice about managing volatility in business. If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.—SPONSORS:Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today. Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.NetSuite provides financial software for all your business needs. More than 40,000 companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅, head to NetSuite https://netsuite.com/metrics and get the CFO’s Guide to AI and Machine Learning. —FOLLOW US ON X:@cjgustafson222 (CJ)—TIMESTAMPS:(00:00) Preview and Intro(02:15) Sponsor – Maxio | Leapfin(04:59) A CFO’s First 100 Days at a New Company(06:47) Topics for Your First Board Meeting(09:24) Training Your Board on the Metrics or “Templatizing”(10:24) Realigning Expectations on the Business Forecast(11:33) Takeaways or Accomplishments from the First Year(12:41) Building Relationships with the C-Suite(15:44) Sponsor – Mercury | NetSuite(17:54) Aligning with the CEO(21:10) Forecasting for Consumption-Based Versus SaaS Models(23:25) Deterministic Versus Probabilistic Modeling(25:18) Using LLMs for Revenue Forecasting(27:55) Metrics for Consumption-Based Models(32:47) Managing Volatility in Business Models(36:19) Unique Seasonality(38:40) Adjusting to the Crypto Winter at Circle(42:35) Coping with the Pandemic at Checkr(48:01) Working with Balaji from Coinbase(50:20) Long-Ass Lightning Round: Patience and Living in the Moment(53:10) Finance Software Stack(54:47) Craziest Expense Story Get full access to Mostly metrics at www.mostlymetrics.com/subscribe
In this solo episode, CJ provides a comprehensive guide on annual planning and delves into the complexities of budgeting for hypergrowth companies. He covers topics such as building sales capacity, modeling out rep time, over-assignment, designing marketing budgets, and costing out the full P&L. He discusses the role of various departments in the annual planning process, including R&D (Research & Development), marketing, sales, customer success, and customer support. The podcast highlights the significance of headcount in budgeting, the intricacies of sales capacity modeling, and the necessity of interdepartmental collaboration. CJ offers practical tips for managing expenses, planning for future growth, and ensuring that sales teams are adequately supported to meet their targets. The episode is a deep dive into the strategic and operational aspects of financial planning in high-growth environments.If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.—SPONSORS:Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today.Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.NetSuite provides financial software for all your business needs. More than 38,000 thousand companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅ NetSuite: https://netsuite.com/metrics and get a customized KPI checklist. Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.—FOLLOW ME ON X:@cjgustafson222 (CJ)—TIMESTAMPS:(00:00) Preview and Intro(01:20) Sponsor – Leapfin | Mercury(03:54) Key Stakeholders in the Annual Planning Process(06:02) Bottoms Up Versus Tops down Budgets(09:00) Creating a Budget Envelope(12:53) Sponsor – NetSuite | Maxio(14:50) Building Sales Capacity(17:00) Quota to OTE Ratio(18:07) Ramping(21:00) Over Assignment(23:08) Seasonality(24:56) The Sales Pod and Surrounding Resources(26:45) Sales Capacity Planning Mistakes(32:25) Marketing: Generating Pipeline Coverage(33:23) Over-Assignment in Marketing(35:01) The Marketing Funnel(38:34) Setting the Pace of the Marketing Pipeline(39:30) Tracking Marketing Costs(41:05) Common Mistakes with the Marketing Budget(43:42) Expenses: Follow the Headcount(45:53) A List of Possible Expense Types(49:05) The Three Buckets of Cost of Goods Sold(50:16) Cost Benchmarks at Department Level(53:47) Laptops(54:22) Annual Bonuses(56:14) Tips for Budgeting for Hypergrowth(1:02:08) Wrap Get full access to Mostly metrics at www.mostlymetrics.com/subscribe
Michael Linford, the COO and CFO of Affirm joins CJ to delve into the Buy Now, Pay Later (BNPL) business model and its rise to mainstream popularity. They discuss the importance of transparent, consumer-friendly financial products and how Affirm differentiates itself by avoiding the predatory practices common in traditional credit models. Michael explains how Affirm structures its fees and generates revenue. He sheds light on the company’s approach to credit underwriting and the significance of short loan durations. The conversation also covers key metrics like customer acquisition and lifetime value, whether the merchant or end consumer should be the focus, and why Affirm doesn't rely on a North Star metric. Michael also shares his thoughts on the company’s approach to managing economic swings, before sharing advice on balancing patience with ambition in one's career and the value of an engineering-based approach to problem-solving.If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.—SPONSORS:Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.NetSuite provides financial software for all your business needs. More than 38,000 thousand companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅ NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today.—FOLLOW US ON X:@cjgustafson222 (CJ)—TIMESTAMPS:(00:00) Preview and Intro(02:37) Sponsor – Mercury | NetSuite(04:17) The History of the Pay-Over-Time Business Model(07:57) The Middle of America and Paying Manually(11:17) The Need for Honest and Transparent Credit(16:06) Sponsor – Maxio | Leapfin(18:27) How Affirm Makes Money(23:03) Affirm’s Credit Underwriting Process(26:00) Affirm’s No-Consumer CAC Model(29:43) Why Affirm Has No North Star Metric(34:15) Managing Economic Swings and Consumer Sentiment(39:52) The Impact of Purchase Size(44:13) Why Deferred Interest Products Are Immoral(48:56) An Engineer’s Approach to Being a CFO(53:40) Balancing Patience with Ambition in Your Career(56:11) Long-Ass Lightning Round: Taking Feedback(1:00:01) Craziest Expense Story Get full access to Mostly metrics at www.mostlymetrics.com/subscribe
In this episode, CJ sits down with Jon Cochrane, VP of Strategy at Maxio, to unpack the latest insights from Maxio’s newly released benchmarking report. Maxio, known for its industry-leading SaaS metrics and billing solutions, serves over 2,400 subscription customers. Jon and CJ dive into practical takeaways from the report, revealing the real rate at which companies are growing, among other insights. They discuss trends in pricing, usage-based versus subscription models, and sector-specific performance, noting which sectors have excelled and which are falling back. The conversation also touches on consumer sentiment and B2B market performance. In addition, they explore the concept of "founder mode," introduced by Paul Graham, and its influence on growth and innovation. Jon and CJ share their unconventional career paths, comparing how their backgrounds have shaped their approaches. This episode is a must-listen for finance professionals seeking both data-driven insights and career advice.If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.—SPONSORS:NetSuite provides financial software for all your business needs. More than 38,000 thousand companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅ NetSuite: https://netsuite.com/metrics and get a customized KPI checklist. Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today. Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.—FOLLOW US ON X:@cjgustafson222 (CJ)CONNECT ON LINKEDIN:https://www.linkedin.com/in/jonathandcochrane/ (Jon Cochrane)—TIMESTAMPS:(00:00) Preview and Intro(02:55) Sponsor – NetSuite | Maxio(05:44) The VP of Strategy Role at Maxio(06:43) Maxio’s New Benchmarking Report(08:08) The Rate at Which Companies Are Growing(09:02) Practical Takeaways Provided by the Report(10:11) How Maxio Sourced the Data(11:24) The Role of Consumer Sentiment(16:41) Sponsor – Leapfin | Mercury(18:35) Growth in Transportation and Supply Chain Tech(22:02) Cyber Insurance and CYA for the CFO(25:55) Invoicing: Subscription Versus Usage(30:21) Ratio of Stage of Company to Size of Invoice(32:57) Five-Year Planning and Average Deal Size(35:40) Break Points in the Average Price Point(39:07) Subscription Versus Usage for Early-Stage Businesses(41:22) Moving from Subscription to Usage-Based or Vice Versa(42:16) The Path from Accountant to CFO(50:07) Surprising Stories Though from Jon’s Audit Career(53:24) Founder Mode(56:56) Wrap Get full access to Mostly metrics at www.mostlymetrics.com/subscribe
In this episode, CJ interviews Stephen Grist, a seasoned seven-time CFO, to discuss what a CFO should aim to accomplish in their first 100 days at a company. Stephen provides an extensive playbook. He covers assessing and shoring up a team, understanding cash drivers, and implementing necessary systems and processes. He also emphasizes the importance of evaluating potential exit strategies from the start and the need for strong FP&A support. The conversation dives into how to approach your first board meeting as an incoming CFO and the critical relationships you should build. Stephen also shares insights into forecasting R&D spend and breaks down the allocation between incubating, investing, and maintaining products. He offers advice on developing internal projects versus customer-funded projects, managing technical debt, and determining R&D payback benchmarks. Having led global teams, Stephen shares tips for building cross-border centers of excellence and discusses some of the challenges faced in such environments. Tune in for one of the most fascinating stories the podcast has featured to date, along with Stephen's expert advice and engaging storytelling.If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.—SPONSORS:Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today. NetSuite provides financial software for all your business needs. More than 38,000 thousand companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅ NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.—FOLLOW US ON X:@cjgustafson222 (CJ)@Sjgrist (Stephen Grist)—TIMESTAMPS:(00:00) Preview and Intro(02:16) Sponsor – Maxio| Leapfin(04:56) A CFO’s First 100 Days at a New Company(10:49) Building a Finance Team Versus Joining One(13:48) Sponsor – NetSuite | Mercury(15:31) The Need for an FP&A Team and Storytelling(19:16) How to Approach Your First Board Meeting(20:49) Important Relationships to Invest in as a New CFO(24:47) Puzzel’s Structure Within the Development Organization(26:22) Internal Research Versus Customer-Funded Development(29:17) Investing in Technical Resources(32:12) Deciding to Sunset Products(34:21) R&D Payback Periods and Benchmarks(36:06) Squaring Up Technical Debt(38:02) Tips for Building Centers of Excellence Abroad(42:53) Functions Most Commonly Moved Abroad(43:56) A Fascinating Anecdote About Managing Cross-Border Teams(47:00) Long-Ass Lightning Round: The French VAT Department(48:29) Waiting for the Right Role(49:13) Puzzel’s Current Digital Transformation(50:28) Craziest Expense Story: Breast Reduction Surgery Get full access to Mostly metrics at www.mostlymetrics.com/subscribe
In this episode, CJ interviews Anthony “Tony” Boor, Executive Vice President and CFO of Blackbaud, who shares the unique path he took from working at a motorcycle shop in New Mexico to becoming a CFO. Tony reflects on his first management experiences and the lessons learned as he navigated his early career. The conversation dives into the evolving role of CFOs, particularly as they take on more GM responsibilities. Tony offers insights into Blackbaud's business model, its revenue layer cake strategy, and their expansion into verticals like payments, which sees over $100 billion processed through their platform annually. He discusses how they monetize this and secure a competitive edge. Tony also introduces his approach to efficiency metrics, including ARR per OTE, and elaborates on key financial concepts like EVA and ROIC. The interview explores his consolidation philosophy focused on simplifying, standardizing, and automating, and how this has played out at Blackbaud. Tune in to hear Tony’s insights on building the right team to propel a career forward in the long-ass lightning round and a fascinating embezzlement story.If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.—SPONSORS:Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today.Planful is a financial performance management platform designed to streamline financial tasks for businesses. It helps with budgeting, closing the books, and financial reporting, all on a cloud-based platform. By improving the efficiency and accuracy of these processes, Planful allows businesses to make better financial decisions. Find out more at www.planful.com/metrics.Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.NetSuite provides financial software for all your business needs. More than 38,000 thousand companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅ NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.—FOLLOW US ON X:@cjgustafson222 (CJ)—TIMESTAMPS:(00:00) Preview and Intro(02:05) Sponsor – Leapfin | Planful(04:05) Tony’s Early Career(08:49) The Changing Role of the CFO(13:32) The Evolution of Blackbaud’s Strategy(17:01) Sponsor – Mercury | NetSuite | Maxio(19:50) Blackbaud’s Customers(21:21) The Purpose-Built Nature of Blackbaud(24:45) Why Add Payments(32:02) Efficiency Metrics: ARR per OTE(35:41) Net Dollar Retention(37:34) Return on Invested Capital(39:40) Economic Value Added(40:42) Residual Cash Earnings(41:57) Consolidation and Blackbaud’s Pillar Model(45:16) Centralized Back Offices(51:07) Long-Ass Lightning Round: A Large Acquisition Mistake(52:53) Building the Right Team Underneath You(56:21) Craziest Embezzlement Story Get full access to Mostly metrics at www.mostlymetrics.com/subscribe
Daniel Kang, VP of finance at Mercury, joins CJ for a dive deep into the nuances of annual planning. Dan talks about why if annual planning feels like a finance exercise, it is destined to fail and will feel like pulling teeth. He describes how to use this exercise to lead a broader strategic discussion about a company's direction for a process that is more impactful and less tedious. Dan also highlights that if you’re searching for big ideas during the annual planning process, there may be underlying issues with your company's roadmap or innovation processes. He touches on the idea that planning tends to expand to fit the time allotted, explains why most companies spend too much time on it, and warns against the trap of false productivity. The conversation delves into how the planning process evolves with a company's growth, including how to calibrate for each stage and ensure plans are actionable. Throughout the episode, Dan provides frameworks to streamline annual planning for a successful outcome.If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.—SPONSORS:Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.Planful is a financial performance management platform designed to streamline financial tasks for businesses. It helps with budgeting, closing the books, and financial reporting, all on a cloud-based platform. By improving the efficiency and accuracy of these processes, Planful allows businesses to make better financial decisions. Find out more at www.planful.com/metrics.NetSuite provides financial software for all your business needs. More than 38,000 thousand companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅ NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today.—FOLLOW US ON X:@cjgustafson222 (CJ)—TIMESTAMPS:(00:00) Preview and Intro(02:12) Sponsor – Planful | NetSuite(05:17) Why Annual Planning Shouldn’t Feel Like a Finance Exercise(10:13) Prioritisation Versus Ideation(12:26) Identifying Constraints(15:16) Annual Planning and Looking at Spans of Control(16:05) Sponsor – Maxio | Leapfin(18:37) Driving Upfront Strategy Versus Just Finance(22:35) Understanding Your Product(24:56) Why Most Companies Spend Too Much Time Planning(27:31) Exercises in False Productivity(33:51) Calibrating Annual Planning for Each Stage of the Company(38:05) A Breakdown of Stages to Plan For(41:22) The Importance of Planning in Smaller-Stage Companies(43:26) Processes to Actualize Your Plans(45:19) The Part of the Plan That’s Likely to Break First(46:11) The Time It Takes to Hire Good Talent(47:25) Budgets Versus Actuals(50:38) Quick Hitters: Planning Mistakes, Forecasting for Interest, Tips and Tricks Get full access to Mostly metrics at www.mostlymetrics.com/subscribe
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