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Turing Distinguished Leader Series: With Partner David Zhang, TVC

ReadWriteStart

So they have about 60 million customers now, and they have a view of the net present value of each customer when they’re onboarding them and their models to show it. So they have quantifiable risk profiles and ultimately map them to lifetime value, right? And so a lot of it is performance management. David Zhang.

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Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

To answer the second question and make sure you are building a profitable business, the key indicator to look at is the Customer LifeTime Value (CLTV). The CLTV is the net present value of the recurring profit streams of a given customer less the acquisition cost. A profitable business will have a positive CLTV.