How do I calculate LTV when expansion is meaningful?
LTV = (ARPU × Gross Margin %) × (1 ÷ Monthly Churn %) ÷ 12. When expansion is 40%+ of revenue, add net retention multiplier: LTV = (ARPU × GM) × NRR% × (1 ÷ Churn) ÷ 12. The second formula is brutal honest—it accounts for the fact that your…
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