ARR bridge and efficiency of a SaaS company in Chennai
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The prompt
A SaaS company based in Chennai, India, sells customer support software to small businesses worldwide and reports in USD. It starts the year with USD 50 million of ARR. During the year it wins USD 15 million of new ARR, existing customers add USD 6 million through upgrades and more users, and it loses USD 4 million to churn and downgrades. Sales and marketing spend to win the new customers was USD 18 million, and gross margin is 80 percent. Its free cash flow margin is 5 percent. Calculate ending ARR, growth, NRR, CAC payback, and the rule of 40.
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3. Speak the case out loud. Your partner shares data when you ask, then scores you with the rubric.
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Candidate view
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Clarifying questions, with the interviewer's answers
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