Very interesting. Do you know the degree to which Virtual Cabinet or SmartVault need to adapt their functionalities/work-flow from country to country? Are there country-specific regulations on how to handle documentation at corporate level or the core of the software can be re-used and broadly shared regardless of the customer location?
I have had no problems making a Smartvault account from Australia for example just to try out. There is most certainly country-specific regulations, such as the GDPR like regulations non-eu companies are bringing in and so on. That is the core regulation for it.
The more important thing is their actual target market and where they choose to actively market it and how that market reacts to the offering. They have pretty clear intentions on where they do that type of thing.
High reusability among verticals or countries is great for them. I suppose they don't publicly disclose the underlying architecture of the code behind VC or SV but knowing if it's based on micro-services or similar can be really useful imho. Those types of design enable better monetisation based on what packages or functionalities the customer needs, dynamic upselling of new features or even curated third party software and also bring down switching costs for new customers (reducing risk by implementing it step by step as each package can typically be deployed independently).
I will definitely look deeper into GetBusy. As usual you have a very sharp eye for finding jewels. Thanks Tristan
Hi Tristan - Thanks for the write up. What do you know about the company's gross retention rates for their core products? How have those churn rates trended over the last couple of years?
Up until 2020 they reported net MRR individually for each VC and SV, now it is combined. They don't report gross churn but they do give LTV and I believe the average client tenure is 11 years so 11% annual gross churn, or 0.9% monthly.
My figures on Net MRR Churn from 2016-2022 are:
2016 = 0.5%
2017 = 0.7%
2018 = 0.4%
2019 = 0.1%
2020 = 0.5%
2021 = 1.0%
2022 = 0.9%
Broadly I think the churn is plenty good. Not the most amazing SaaS metrics but for the price it is best in class.
Very interesting. Do you know the degree to which Virtual Cabinet or SmartVault need to adapt their functionalities/work-flow from country to country? Are there country-specific regulations on how to handle documentation at corporate level or the core of the software can be re-used and broadly shared regardless of the customer location?
I have had no problems making a Smartvault account from Australia for example just to try out. There is most certainly country-specific regulations, such as the GDPR like regulations non-eu companies are bringing in and so on. That is the core regulation for it.
The more important thing is their actual target market and where they choose to actively market it and how that market reacts to the offering. They have pretty clear intentions on where they do that type of thing.
High reusability among verticals or countries is great for them. I suppose they don't publicly disclose the underlying architecture of the code behind VC or SV but knowing if it's based on micro-services or similar can be really useful imho. Those types of design enable better monetisation based on what packages or functionalities the customer needs, dynamic upselling of new features or even curated third party software and also bring down switching costs for new customers (reducing risk by implementing it step by step as each package can typically be deployed independently).
I will definitely look deeper into GetBusy. As usual you have a very sharp eye for finding jewels. Thanks Tristan
Hi Tristan - Thanks for the write up. What do you know about the company's gross retention rates for their core products? How have those churn rates trended over the last couple of years?
Up until 2020 they reported net MRR individually for each VC and SV, now it is combined. They don't report gross churn but they do give LTV and I believe the average client tenure is 11 years so 11% annual gross churn, or 0.9% monthly.
My figures on Net MRR Churn from 2016-2022 are:
2016 = 0.5%
2017 = 0.7%
2018 = 0.4%
2019 = 0.1%
2020 = 0.5%
2021 = 1.0%
2022 = 0.9%
Broadly I think the churn is plenty good. Not the most amazing SaaS metrics but for the price it is best in class.