Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.
Cracking the Code
OCTOBER 10, 2008
The CLTV is the net present value of the recurring profit streams of a given customer less the acquisition cost. To make the calculation simple, let’s assume that a customer generates $1 of annual recurring revenue for a company with a CAC ratio of 1.0, A profitable business will have a positive CLTV.
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