[aresant]

An article by Tom Tungz that relates SAAS co marketing budgets to to annuity grabs helps me contextualize this S1.

Asana's gross margin is ~85%!

Their net retention is tracking @ 120% in 2020.

So every $1.00 dollar of sales to a customer last year turned into $1.20 this year.

AKA negative churn.

Which explains the reason you see them spending $105m in sales & marketing to generate $142m in topline.

Obviously this runs its course eventually, but at that point you cool down your S&M & R&D engine and try to keep up with counting all the cash flows.

SAAS is just a remarkable business, absolute cash pigs.

(1) https://tomtunguz.com/does-better-ndr-imply-greater-toleranc...