[pstrazzulla]

Please share the script!

So essentially it's taking the average churn for a given customer, and running a monte carlo simulation to see what the expected scenario is?

Turns out, low churn and high margin companies are worth a ton! Especially with low interest rates and a public equities market that shouldn't return more than 4% real over the next few decades. Not a lot of other places to put your capital.

[stcredzero]

Turns out, low churn and high margin companies are worth a ton! Especially with low interest rates and a public equities market that shouldn't return more than 4% real over the next few decades. Not a lot of other places to put your capital.

What margins qualify as "high?" I have a SaaS offering I'm working on, and I was going to charge as a multiple of my compute and network costs. Is 85.7% "high" for SaaS? Or is that meh?

[pstrazzulla]

85.7% is very high, that'd be a great gross margin (revenues - variable costs, such as compute/network costs).

[ttul]

The script is so straightforward. Literally just loop 100,000 times and each time through a loop of 50 years, select a random sample of customer revenue amounts to delete. Sum up the revenue from each run and then use numpy.histogram....

[ttul]

Yes. Margins of even 70% are amazing over a long period of time.