Meeting Title: Brainforge x Stackblitz Weekly Check Date: 2025-02-28 Meeting participants: Luke Daque, Mitchell Wright, Uttam Kumaran


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1 00:00:18.740 00:00:19.620 Uttam Kumaran: Hey? Mitch.

2 00:00:22.970 00:00:25.000 Mitchell Wright: Hey? What’s going on?

3 00:00:26.580 00:00:28.319 Mitchell Wright: Sorry, my video. There we go.

4 00:00:31.830 00:00:32.390 Mitchell Wright: Stop.

5 00:00:32.409 00:00:33.229 Uttam Kumaran: You know.

6 00:00:34.370 00:00:34.699 Mitchell Wright: What is that?

7 00:00:35.100 00:00:36.220 Uttam Kumaran: How the weekend, though.

8 00:00:37.500 00:00:39.239 Mitchell Wright: Good. Yeah.

9 00:00:39.470 00:00:43.400 Mitchell Wright: Good. Just feel like I barely am staying on top of

10 00:00:43.660 00:00:46.890 Mitchell Wright: some things and just letting a lot of other stuff just.

11 00:00:46.890 00:00:51.300 Uttam Kumaran: What’s like what’s like the day to day on your end? Because I feel like you’re like, so cross

12 00:00:51.540 00:00:52.790 Uttam Kumaran: everything like.

13 00:00:53.790 00:00:56.399 Mitchell Wright: What’s like, what is top of mind right now?

14 00:00:57.330 00:00:59.010 Mitchell Wright: So big one is

15 00:00:59.180 00:01:12.509 Mitchell Wright: really marketing is huge, right? So trying to hire 1st off. And then in between that, trying to make sure that we’re keeping growth going right now. A big part of that is really

16 00:01:13.586 00:01:15.499 Mitchell Wright: driven by

17 00:01:15.900 00:01:28.819 Mitchell Wright: product launches like feature launches, and so all the work around making sure we’ve got stuff lined up every week, and that when we do launch something that we have a big marketing push behind it.

18 00:01:28.820 00:01:29.370 Uttam Kumaran: Yeah.

19 00:01:29.760 00:01:36.319 Mitchell Wright: While also trying to get some more of this always on type marketing going. So

20 00:01:36.580 00:01:44.740 Mitchell Wright: that’s that’s really the big thing is like trying to keep the marketing machine moving and then also building up this foundational stuff

21 00:01:45.060 00:01:46.610 Mitchell Wright: at the same time.

22 00:01:47.450 00:01:55.809 Mitchell Wright: Yeah, we we put out 2 offers to data people. They’re gonna start March 24, th I think it is.

23 00:01:56.370 00:02:06.389 Mitchell Wright: So. So that’s great. And that means like, you guys will get a little bit more love there and attention. Than just like whatever

24 00:02:07.460 00:02:09.040 Mitchell Wright: string together.

25 00:02:10.320 00:02:15.010 Mitchell Wright: But yeah, so that’s kind of yeah. The majority of my day to day is really just

26 00:02:15.270 00:02:21.590 Mitchell Wright: making sure that that stuff is pushing forward.

27 00:02:22.860 00:02:28.639 Uttam Kumaran: Yeah, I think for us, I think we we now today we worked on a bunch of stuff for events.

28 00:02:28.800 00:02:31.020 Uttam Kumaran: We work on stripe, Mr. Arr.

29 00:02:31.460 00:02:35.560 Uttam Kumaran: So I’m pretty sure, at least, if not today, probably by early next week we should have

30 00:02:35.870 00:02:39.979 Uttam Kumaran: that stuff moved over. Basically like, I’m considering, like bare metrics to this.

31 00:02:40.560 00:02:57.339 Uttam Kumaran: That piece taken care of, and we have a pretty good March model now, so we could just do the joins and bring things in. Yeah, I think certainly probably would be valuable. I mean, I’m sort of acting like that a little bit. But to have one person who’s on the analysis side, basically be like.

32 00:02:58.030 00:03:05.560 Uttam Kumaran: next thing. Next thing. Next thing. Next thing, I do think we’ve we’ve done a really good job. And that answering those questions will be a lot quicker than

33 00:03:05.780 00:03:07.370 Uttam Kumaran: when there wasn’t anything

34 00:03:08.800 00:03:23.620 Uttam Kumaran: and then working with with them on whether it’s new data coming in. But I think primarily on getting that data person to sort of take the dashboards and then go build consensus around and like start to permeate within the org

35 00:03:23.620 00:03:25.638 Uttam Kumaran: yeah, something that will take

36 00:03:26.360 00:03:37.077 Uttam Kumaran: I mean, we could do that. I think it definitely helps to come from someone internally who’s like a champion there. You know, it’s just like to get people to actually use the dashboards have the feedback loop.

37 00:03:38.060 00:03:38.850 Uttam Kumaran: yeah.

38 00:03:39.270 00:03:46.114 Mitchell Wright: Yeah. And so that that’s kind of the plan. So they’re both guys that worked with the Purcell, both

39 00:03:46.660 00:03:54.079 Mitchell Wright: data engineers. But they’re gonna be doing kind of like the full stack thing. So one of them is a little bit more came from like analyst

40 00:03:54.190 00:04:03.157 Mitchell Wright: moved into data engineering, and the other is much heavier on the engineering side, so they’ll they’ll they’ll kind of split a little bit with some overlap.

41 00:04:05.090 00:04:08.182 Mitchell Wright: Yeah, so that’s that’s kind of the plan. So yeah, I think that.

42 00:04:08.640 00:04:15.539 Mitchell Wright: so, Stefan, he’s based out of Texas. He’ll be a little bit more of the public face and like analyst.

43 00:04:15.540 00:04:16.079 Uttam Kumaran: Nice.

44 00:04:16.089 00:04:16.489 Mitchell Wright: Things.

45 00:04:17.572 00:04:29.919 Mitchell Wright: And then Alejandro is based out of Spain, and I think he’ll be doing more of the data engineering and maybe modeling work with you guys as as needed. I mean, I think he’ll probably

46 00:04:30.149 00:04:35.839 Mitchell Wright: guide the modeling more than actually doing it. And like, push that off to you guys is sort of the the thought. So.

47 00:04:36.399 00:04:37.179 Mitchell Wright: yeah.

48 00:04:37.960 00:04:48.150 Uttam Kumaran: Cool. Yeah, and I think the only, probably another housekeeping pieces. I think we’re at our month time, so I’ll probably circle back with you on just renewal.

49 00:04:48.300 00:04:50.050 Uttam Kumaran: So I’ll I’ll message you about that.

50 00:04:50.478 00:05:02.189 Uttam Kumaran: That’s but that’s good to hear for us to know that we’re getting some support, because I think overall talking to Luke this week. I’m like, yeah, adoption is gonna be the hardest piece we could go. We could go own that.

51 00:05:02.390 00:05:03.769 Uttam Kumaran: It’s just like

52 00:05:04.170 00:05:19.989 Uttam Kumaran: I feel like if you’re I would rather hand that off to the new person, because that’ll help. They’ll they’ll just get a ton of love and cloud when they go, do that and push that through. I think we’ll probably just keep considering serving you directly for the short term.

53 00:05:19.990 00:05:20.979 Mitchell Wright: Yeah, I think that’s great.

54 00:05:20.980 00:05:22.999 Uttam Kumaran: All the data is right? Yeah.

55 00:05:23.000 00:05:35.610 Mitchell Wright: I don’t think, I don’t think we need you guys to go. Yeah. So essentially like the dream scenario would be like, we get stuff even more built out like they come in. They start doing like a little bit of

56 00:05:35.880 00:05:44.434 Mitchell Wright: just verification and and whatever. And then they can just go kind of take this as like, hey, look at this win. We’ve got on the data side.

57 00:05:45.510 00:05:49.590 Mitchell Wright: yeah. And then and then we can just keep moving and iterating from there.

58 00:05:49.590 00:05:50.170 Uttam Kumaran: Cool.

59 00:05:51.870 00:05:52.270 Mitchell Wright: Awesome.

60 00:05:52.740 00:05:55.039 Uttam Kumaran: Yeah, if you want to share

61 00:05:55.250 00:05:59.480 Uttam Kumaran: stuff from our end on stripe stuff or otherwise. Yeah, we can go ahead.

62 00:05:59.480 00:06:00.100 Luke Daque: Sure.

63 00:06:00.410 00:06:03.800 Luke Daque: Yeah, I can share what we have for Mrr at the moment.

64 00:06:04.200 00:06:05.700 Luke Daque: Yeah, yeah.

65 00:06:13.190 00:06:15.030 Luke Daque: can you see my screen.

66 00:06:15.030 00:06:15.740 Mitchell Wright: Yep.

67 00:06:17.120 00:06:20.849 Luke Daque: Cool. So yeah, let me just

68 00:06:21.200 00:06:23.930 Luke Daque: show you the flip table 1st that we have.

69 00:06:24.310 00:06:27.900 Luke Daque: But there’s still like some data validation that I’m trying to do.

70 00:06:28.220 00:06:34.489 Luke Daque: But yeah, this, the the table that we built basically looks like this.

71 00:06:34.690 00:06:39.519 Luke Daque: So it has like, like for a specific subscription.

72 00:06:40.168 00:06:45.190 Luke Daque: It’s gonna have like one row for each month that they were active. Right?

73 00:06:46.830 00:06:51.010 Luke Daque: Yeah, since from the time they got created to the time

74 00:06:51.480 00:06:57.730 Luke Daque: they were cancelled, or if they weren’t, they never cancel it until like this month. Basically.

75 00:06:58.410 00:07:00.370 Luke Daque: And show, like the Mrr.

76 00:07:00.780 00:07:05.410 Mitchell Wright: Oh, got it! And then the active date is the month that that subscription is.

77 00:07:05.650 00:07:07.760 Luke Daque: Is still active. Yeah, or like, what’s what?

78 00:07:07.760 00:07:11.260 Mitchell Wright: What that row is for? Yeah. Got it?

79 00:07:11.640 00:07:15.249 Luke Daque: Yeah, basically, yeah. And then, yeah, we also have like

80 00:07:15.450 00:07:23.550 Luke Daque: tags here, whether they were new. So if it was created on that month, then this would be true like for this subscription, for example.

81 00:07:24.870 00:07:29.220 Luke Daque: Right. And then this would be like the it’s canceled so, Boolean, just, for

82 00:07:29.450 00:07:32.310 Luke Daque: we determine whether it’s cancel or not as well.

83 00:07:32.310 00:07:32.960 Mitchell Wright: Yeah.

84 00:07:32.960 00:07:38.160 Uttam Kumaran: Yeah, so our, yeah, exactly. So if you want to expand the number columns on the right side,

85 00:07:40.720 00:08:01.270 Uttam Kumaran: just so we can see the titles. Yeah, so basically, the yeah, the way I architected the way we typically architect subscriptions is like, we try to just have flags. And then typically on the business side. You want to look at incoming new revenue revenue from active subscriptions and stuff that’s on its way out.

86 00:08:01.400 00:08:10.029 Uttam Kumaran: Yeah, so active, new and basically churned. And so we both

87 00:08:10.190 00:08:32.250 Uttam Kumaran: have flags and we’re bucketing both of those. So you’ll be 2. You’ll be. See 2 things, one for act for a new subscription. What are all this new subscriptions active that month? So we have both the activation date and then, of course, you can day trunk that and see when you date trunk that in the Bi tool it’ll be really clear. You can just basically look at subscriptions that had an active day in that month.

88 00:08:32.640 00:08:33.039 Mitchell Wright: Occasionally.

89 00:08:33.049 00:08:45.119 Uttam Kumaran: A month. The second piece is for active subscriptions. You may want to look at both the Mrr. Value the arr value. But also, if I was gonna ask is like, if you guys do you guys do annual plans?

90 00:08:45.299 00:08:46.289 Uttam Kumaran: I feel like.

91 00:08:46.290 00:08:47.079 Mitchell Wright: We do? Yeah.

92 00:08:47.080 00:08:54.360 Uttam Kumaran: Yeah. Okay. So then, what we decided to do is for we built a annual plan remaining basically. So like the drawdown.

93 00:08:54.900 00:08:55.470 Mitchell Wright: Oh, yeah.

94 00:08:55.470 00:08:57.510 Uttam Kumaran: For Mrr. It’s sort of.

95 00:08:57.510 00:09:14.999 Mitchell Wright: Oh, sorry. Sorry. So some we we do. It’s it’s month to month, but you can also sign up for an annual. So it’s like, if they did sign up for an annual, then we should do the draw down. But if it’s month to month, yeah. Yeah. So I need to. Essentially, we have, we just changed it because of oh.

96 00:09:16.730 00:09:20.289 Mitchell Wright: previously we had basically like 4 plans.

97 00:09:20.760 00:09:28.659 Mitchell Wright: and then those would be either monthly or annual. We just split it out so that the monthly is separate from the annual, because we’re doing a bunch of these like

98 00:09:29.140 00:09:39.239 Mitchell Wright: coupon codes for people 3 months, and when you have it, the same product that could be monthly or annually. The coupon let people is supposed to be like 3 months free, but it would let them get

99 00:09:39.460 00:09:45.980 Mitchell Wright: an annual subscription for free. So so we switch that out. So. But now we have, like, essentially 8

100 00:09:46.820 00:09:54.600 Mitchell Wright: codes for the individuals that’s gonna be for the 4 tiers of monthly plan, and the 4 tiers of annual plan.

101 00:09:55.180 00:10:21.170 Uttam Kumaran: Yeah, so ideally, it’s like, we, we want. This will force you guys to start getting a sense of like, how do you want to bucket revenue, for example, the ideally you want everything to be annual plans. Right? So how do? How do people move from Mr. To AR? But also, how do you see? Net new Mrr, and then new AR. And what plan is it coming from? Right like, for example, right now, the monthly recurring? We do have an arr number. We just multiply it by 12.

102 00:10:21.170 00:10:21.890 Mitchell Wright: Exactly.

103 00:10:21.890 00:10:25.270 Uttam Kumaran: But we also have the annual plan that.

104 00:10:25.270 00:10:25.920 Luke Daque: And.

105 00:10:25.920 00:10:40.099 Uttam Kumaran: Is like an annual commitment, right? And I don’t know whether I don’t know how the cancellations and things work, but I think it’s you’re able to see sort of how that’s all getting drawn down. So that maybe question is like, Do the monthly plans? Do we even like?

106 00:10:40.220 00:10:43.810 Uttam Kumaran: Do we bucket that error separately. Right? Is that like.

107 00:10:43.810 00:10:46.599 Mitchell Wright: Yeah, I mean, I think I think it would be interesting

108 00:10:46.790 00:10:56.039 Mitchell Wright: for us in the near future to be able to look at. You know here is our arr. But of that arr this much of it is on month to month.

109 00:10:56.040 00:10:56.889 Uttam Kumaran: Yes. Correct.

110 00:10:56.890 00:11:14.209 Mitchell Wright: This much of it is, yeah, is annual, and the other thing is like someone could sign up for annual and then cancel. But their subscription stays through the end of the period, which, in an arr which in an annual plan, means like, you know. So we could actually see if someone has the annual plan, but has actually cancelled.

111 00:11:14.210 00:11:14.690 Uttam Kumaran: Yes.

112 00:11:14.690 00:11:16.680 Mitchell Wright: And so they’re not gonna be renewing.

113 00:11:16.680 00:11:21.779 Uttam Kumaran: So exactly, we’ll have the can. We have a canceled remaining revenue field that basically does that.

114 00:11:22.040 00:11:23.290 Mitchell Wright: Oh, yeah.

115 00:11:24.650 00:11:30.029 Uttam Kumaran: Right. So if they cancel mid plan, this is the this is the amount remaining on the plan.

116 00:11:30.310 00:11:36.130 Mitchell Wright: Yeah, that. So we’ll get that. But then, after that, it’s like, that’s gonna go away. Yeah.

117 00:11:36.130 00:11:49.669 Uttam Kumaran: Exactly so. So I think that that makes a lot of sense, because we’ve clients typically either do pro rate or they’ll say, like, you can cancel mid plan, but you still get billed, and if it’s like upfront right if it’s like an upfront annual plan, then you already get you already.

118 00:11:49.670 00:11:50.720 Mitchell Wright: Paid. Yeah.

119 00:11:50.720 00:11:59.760 Uttam Kumaran: Yeah. And so that’s the sort of stuff that I think we will get ironed out. The other thing is, you also want to know what is the canceled Mrr. And you want, you want to know that.

120 00:12:00.200 00:12:14.099 Uttam Kumaran: like, it’s basically the way I described to the team is like, it’s like leaky bucket. It’s basically like, you wanna know that net new Mrr is higher than your churned Mrr, and that you’re growing right. And so the difference is.

121 00:12:14.280 00:12:26.650 Uttam Kumaran: what’s growth? And so right now, we yeah, we’re sort of building. We basically have a version of that. We made a lot of assumptions in terms of like Mr. AR. Bucketing. But this structure will give

122 00:12:26.870 00:12:28.350 Uttam Kumaran: everything you need like

123 00:12:28.850 00:12:37.144 Uttam Kumaran: after I iterated a lot on this when I was at flow code, I’m like modeling, because they also they had free paid and

124 00:12:37.700 00:12:51.670 Uttam Kumaran: they free paid annual. And so we. This is a great way to to make sure that you have all the dimensionality. But then, also, it’s easy to use this table to bucket. So in a given month you can see every category what’s coming in what’s what stays in and what’s coming out.

125 00:12:51.820 00:12:53.970 Mitchell Wright: Yeah, yeah, exactly.

126 00:12:54.160 00:12:54.800 Uttam Kumaran: You know.

127 00:12:54.920 00:12:56.190 Uttam Kumaran: And then, of course, like

128 00:12:56.700 00:13:00.740 Uttam Kumaran: the problem with that business is, they had like 80% churn after like 1st month.

129 00:13:00.940 00:13:01.970 Mitchell Wright: Yeah, that’s.

130 00:13:01.970 00:13:05.169 Uttam Kumaran: What you guys will have to start looking at, which is like.

131 00:13:05.170 00:13:11.930 Mitchell Wright: Yeah, we have. Yeah, consumer B to B, to CB to C, AI apps have high churn.

132 00:13:11.930 00:13:20.840 Uttam Kumaran: Yes, yeah, exactly. And so you’ll be able to see. Oh, shit. Okay, we’re turning 60. That means if we were to stop growth.

133 00:13:21.770 00:13:23.650 Uttam Kumaran: We have 3 months

134 00:13:24.590 00:13:31.070 Uttam Kumaran: right? And but that’s the that’s a great comp. And then but also you could then start to look at like what is the actual revenue churn. So not.

135 00:13:31.070 00:13:35.459 Mitchell Wright: Yeah, exactly right. And like net dollar retention is a big one.

136 00:13:35.460 00:13:36.080 Uttam Kumaran: Yes.

137 00:13:36.080 00:13:44.210 Mitchell Wright: Because we all we do see. We also, just like last week, made a a pricing change on on some stuff which resulted in

138 00:13:44.740 00:13:51.850 Mitchell Wright: more people upgrading plans rather than just buying like reloads of tokens.

139 00:13:51.850 00:13:52.290 Uttam Kumaran: Yes.

140 00:13:52.290 00:13:52.620 Luke Daque: Soon.

141 00:13:52.995 00:14:01.040 Mitchell Wright: Which, yeah, I think, creates a little bit more durable revenue. And then we’re starting to roll out like enterprise stuff and.

142 00:14:01.040 00:14:01.650 Uttam Kumaran: Yes.

143 00:14:01.650 00:14:06.840 Mitchell Wright: You know, those are annual contracts which also is more durable revenue. So yeah.

144 00:14:08.300 00:14:11.619 Uttam Kumaran: So that way, I think the dimensionality and sort of the structure we have here.

145 00:14:12.560 00:14:16.639 Uttam Kumaran: We’ll like, lend yourself well to that. Those types of questions.

146 00:14:16.980 00:14:24.330 Luke Daque: Yeah, I think that’s also why my numbers didn’t match, because I didn’t take into account the yearly plans.

147 00:14:26.170 00:14:31.559 Luke Daque: Yeah, like the like. It could be the same plan right? But

148 00:14:33.104 00:14:34.760 Uttam Kumaran: They buy the annual.

149 00:14:35.680 00:14:45.409 Luke Daque: Yeah. And there’s some of them like yearly. So I have to divide the plan amount into 12 to make it the Mrr. For the yearly plan, right?

150 00:14:46.820 00:14:47.440 Mitchell Wright: Gotcha.

151 00:14:47.440 00:14:50.229 Uttam Kumaran: Because it’s also on the accounting side. Yeah, it’s like the realization.

152 00:14:50.230 00:14:50.849 Luke Daque: Appreciate it.

153 00:14:50.850 00:14:54.079 Mitchell Wright: That’s probably that’s something that’s helpful to make.

154 00:14:55.210 00:15:07.540 Mitchell Wright: We don’t have a finance person right now. But I went through this whole process with the finance team of herself, of like automating their reporting. And so, yeah, revenue recognition then becomes like a huge piece of that.

155 00:15:07.930 00:15:23.590 Uttam Kumaran: So that’s the piece I want to try to nail in this exercise, too, is like, Recognize revenue versus the real revenue that comes in. And then, yeah, having the understanding of, like, the monthly plans versus the annual plans, and then even understanding, like the cancellation process.

156 00:15:24.111 00:15:28.190 Uttam Kumaran: like. So right now. If they, if they cancel mid month, they get refunded.

157 00:15:28.430 00:15:37.439 Mitchell Wright: No, we’re not refunding my understanding is they can cancel, but their subscription just runs to the end of the period. Then whether that.

158 00:15:37.440 00:15:39.583 Uttam Kumaran: What’s the best way of doing it?

159 00:15:40.530 00:15:47.870 Uttam Kumaran: yeah, I mean, I wish, like, I tried to push that to the other business, too, because you really have to deal with pro rating and a lot of stuff.

160 00:15:48.674 00:15:52.789 Uttam Kumaran: If you cancel mid month and like, I think this way is, is perfect.

161 00:15:53.230 00:15:59.040 Mitchell Wright: Yeah, yeah, I don’t think I don’t think doing like prorated refund makes a ton of sense. Personally.

162 00:15:59.910 00:16:02.930 Uttam Kumaran: So then, honestly canceled, Mrr.

163 00:16:03.800 00:16:12.499 Uttam Kumaran: yeah, canceled Mrr will come from cause the AR. Then they can’t get a refund on the remaining. So you’ve already paid upfront. I guess we’ll instead have to.

164 00:16:12.890 00:16:16.860 Uttam Kumaran: It’s really just canceled. It’ll be cancelled, Mrr, which is

165 00:16:17.000 00:16:21.189 Uttam Kumaran: monthly plans that are cancelled. There may not be really canceled.

166 00:16:21.987 00:16:28.030 Uttam Kumaran: which is that times 12. But yeah, there’s really not canceled arr, because you can’t cancel.

167 00:16:28.030 00:16:29.990 Mitchell Wright: True, that’s true.

168 00:16:30.170 00:16:32.220 Mitchell Wright: We would just look at it as like.

169 00:16:32.340 00:16:34.909 Mitchell Wright: when when does this money stop?

170 00:16:35.520 00:16:41.220 Uttam Kumaran: Yeah, you would. Just well, there are for the annual plans. There’s no monthly billing option. Right? It’s not a commitment.

171 00:16:41.390 00:16:44.420 Mitchell Wright: That’s true, but I guess I guess the point being that like

172 00:16:46.991 00:16:56.380 Mitchell Wright: if we’re looking at Mrr, we are essentially breaking down that arr into monthly amounts, I think, is how bare metrics is doing it.

173 00:16:57.460 00:17:01.159 Mitchell Wright: And so at some point, you know that we we would just

174 00:17:02.280 00:17:13.910 Mitchell Wright: essentially want to get that that signal whenever it happens of like. Oh, yeah, this person already canceled so like that part that Mrr is gonna end in 2 months.

175 00:17:14.650 00:17:15.410 Uttam Kumaran: I see.

176 00:17:15.410 00:17:21.540 Mitchell Wright: Subscription. You know what I mean. So we could just see like, how much do we already know is not going to

177 00:17:21.980 00:17:29.310 Mitchell Wright: renew in March is not going to renew in April is not going to renew in May, because we’ve already seen.

178 00:17:29.310 00:17:35.549 Uttam Kumaran: Yeah, so ideally, what? Yeah are basically Luca, the dates fine should go into the future because we.

179 00:17:36.170 00:17:44.129 Uttam Kumaran: the summary table, will have a future date spine, because if these are annual contracts, then we will assume until they’re cancelled, that.

180 00:17:44.410 00:17:59.310 Uttam Kumaran: for example, if you’ve got an annual contract February, I want there to be a record for February 2026 amount. And that way we can then look in the future and say, Okay, we actually, for for April 2026.

181 00:17:59.710 00:18:00.040 Uttam Kumaran: Thank you.

182 00:18:00.040 00:18:05.529 Uttam Kumaran: Canceled amount that we should have recognized, and then for for monthly plans. That will just be the next month.

183 00:18:05.530 00:18:14.910 Mitchell Wright: Yeah, yeah, exactly. Cause. So like, if I sign up today, then I’m not gonna renew until March 28. So technically, you know.

184 00:18:15.210 00:18:17.540 Mitchell Wright: And and that’s where that’s where like

185 00:18:18.560 00:18:22.669 Mitchell Wright: for for now I think we just book that as February revenue.

186 00:18:22.670 00:18:24.370 Uttam Kumaran: Yeah. So that’s the thing is like, you need.

187 00:18:24.370 00:18:30.250 Mitchell Wright: Finance team is, gonna say, like, No, that’s actually probably gonna be March, because we’re not servicing them until.

188 00:18:30.460 00:18:35.075 Uttam Kumaran: Yeah, so what’s gonna happen is we’ll shift everything to daily. Basically.

189 00:18:35.660 00:18:39.130 Uttam Kumaran: we you could. We’ll do daily, and we will assume. And then.

190 00:18:39.480 00:18:45.410 Mitchell Wright: Actually, well, the the thing is because we’re all consumption based. We actually can

191 00:18:46.420 00:18:48.880 Mitchell Wright: base it off of token usage.

192 00:18:49.770 00:19:03.109 Mitchell Wright: because once someone uses up all of the tokens, because when you sign up for a monthly subscription, you actually do have a limit on the usage. And so some people will use all of their tokens in the 1st week.

193 00:19:03.340 00:19:10.189 Mitchell Wright: and then we can recognize all of that revenue. So really, we’ll do revenue recognition based on token usage.

194 00:19:11.000 00:19:23.000 Mitchell Wright: which is, gonna be actually kind of nice. And then if they don’t use their tokens, then we would just recognize it as they use. And then, whatever’s really just get recognized on that last day when they expire.

195 00:19:23.300 00:19:29.630 Uttam Kumaran: Yeah, so it’s a Max a month. It’s a maximum of the plan at minimum. Just the amount.

196 00:19:29.890 00:19:36.259 Mitchell Wright: Yeah. Yeah. Oh, that’s interesting. That actually kind of makes revenue recognition a lot easier in some ways.

197 00:19:36.820 00:19:41.470 Uttam Kumaran: I guess. What if they’re an so when you, when you get an annual plan, it’s still.

198 00:19:41.470 00:19:43.420 Mitchell Wright: Still get monthly token amounts.

199 00:19:43.420 00:19:45.209 Uttam Kumaran: Oh, okay, it’s still monthly. Okay? So.

200 00:19:45.210 00:19:51.060 Mitchell Wright: Yeah, so like your annual. But that just means you’ll get like 2 million tokens a month for a year.

201 00:19:51.060 00:19:52.060 Uttam Kumaran: What if there’s no usage?

202 00:19:52.060 00:19:55.049 Mitchell Wright: You get a cheaper price per token by doing it annual.

203 00:19:55.050 00:19:57.479 Uttam Kumaran: But what if they skip a month’s worth of usage.

204 00:19:57.960 00:20:02.509 Mitchell Wright: Then we would, just if they used absolutely 0 tokens in a month.

205 00:20:02.850 00:20:08.350 Mitchell Wright: they just lose them all. And we would just recognize that at the end of the month, when they expire.

206 00:20:08.840 00:20:10.159 Uttam Kumaran: As consumption. Okay. Okay.

207 00:20:10.160 00:20:13.949 Mitchell Wright: Yeah, cause it’s all consumption based. There is no real.

208 00:20:13.950 00:20:16.101 Uttam Kumaran: Yeah, yeah, there’s no real like,

209 00:20:17.560 00:20:19.659 Mitchell Wright: Platform feed, or anything like that.

210 00:20:20.200 00:20:28.940 Uttam Kumaran: Interesting. Yeah, yeah, yeah, that’s really cool, because you can start to look at also, like when

211 00:20:29.550 00:20:34.090 Uttam Kumaran: by plan and by type of customer, their credit drawdown habits.

212 00:20:34.090 00:20:36.070 Mitchell Wright: Exactly, because.

213 00:20:36.070 00:20:42.079 Uttam Kumaran: Dynamically give offers or sort of think about like more of the pacing of consumption versus just

214 00:20:43.110 00:20:48.790 Uttam Kumaran: like, here’s a hundred 1,000. You may consider doing that on like, yeah, it’s it’s kind of a

215 00:20:49.380 00:20:49.949 Uttam Kumaran: it’s really.

216 00:20:49.950 00:21:04.659 Mitchell Wright: Yeah, I think there’s some interesting things there, because the other, the other thing is, we kind of have to do it that way because people get mad when they’re like, Oh, my tokens expired like, why can’t they roll over? But it’s because we’re actually we’re prepaying anthropic for inference.

217 00:21:04.660 00:21:06.060 Uttam Kumaran: Oh, okay.

218 00:21:06.060 00:21:16.492 Mitchell Wright: So we can reserve cause what’s happening even now. Right? So we switched a bunch of stuff over to Cloud 3.7. But they gave us a much smaller

219 00:21:17.420 00:21:18.130 Mitchell Wright: limit.

220 00:21:18.130 00:21:18.560 Luke Daque: Limit.

221 00:21:18.560 00:21:23.060 Mitchell Wright: On tokens per minute, and we keep hitting that.

222 00:21:23.340 00:21:36.360 Mitchell Wright: And so it creates a bad experience. So what we had did in the past of 3.5 is like, we basically reserved a certain amount of capacity which is great for us, because that also limits what other people can reserve like competitors.

223 00:21:37.380 00:21:40.450 Mitchell Wright: But because of that we have to commit to, you know, like

224 00:21:40.870 00:21:47.769 Mitchell Wright: x 1 million of dollars a month in spend with anthropic. And so if we let people’s tokens roll over.

225 00:21:48.140 00:21:54.169 Mitchell Wright: We could get into a really bad situation where there’s this huge bank of tokens that people are then all using in the same month.

226 00:21:54.190 00:21:55.199 Uttam Kumaran: Yeah, yeah, yeah.

227 00:21:55.200 00:21:57.770 Mitchell Wright: Yeah, so anyway.

228 00:21:57.770 00:22:00.730 Uttam Kumaran: Yeah, that’s interesting. Yeah, that’s so.

229 00:22:00.800 00:22:02.330 Mitchell Wright: Expire, tokens.

230 00:22:02.330 00:22:03.690 Uttam Kumaran: Yeah, that’s dope.

231 00:22:05.870 00:22:22.149 Mitchell Wright: Okay, and that this actually has been a really valuable conversation to just talk through that revenue recognition. Because I know we’re gonna we’re gonna get to that point in the very near future. And having thought through that already is actually really helpful.

232 00:22:22.850 00:22:29.430 Luke Daque: Yeah, the cool thing is, we also like, added the the plan and interval. So we we’ll be able like to filter down

233 00:22:29.550 00:22:37.469 Luke Daque: or or break it down like the Mrr, like I can show you a draft of the real dashboard that we have. It’s still in progress.

234 00:22:37.470 00:22:38.880 Mitchell Wright: Yeah, I’d love to see that.

235 00:22:38.880 00:22:43.439 Luke Daque: And it’s not accurate at the moment, because, like I didn’t take into.

236 00:22:43.440 00:22:44.070 Mitchell Wright: Yeah, so.

237 00:22:44.070 00:22:45.400 Luke Daque: The yearly MRI.

238 00:22:45.400 00:22:48.410 Mitchell Wright: Yeah, so these like total subscriptions. So there are,

239 00:22:49.890 00:22:54.059 Mitchell Wright: we’re gonna wanna do? Yeah, some filtering on the actual.

240 00:22:54.060 00:22:55.749 Luke Daque: As well right.

241 00:22:55.750 00:22:56.280 Uttam Kumaran: Yeah.

242 00:22:56.614 00:22:58.619 Luke Daque: This is like everything, and not.

243 00:22:58.620 00:23:07.979 Mitchell Wright: Yeah, yeah, cause right? Now, like actual subscriptions we have for bolt is like, somewhere in the 60 thousands.

244 00:23:07.980 00:23:08.600 Luke Daque: Yeah.

245 00:23:08.600 00:23:16.739 Mitchell Wright: I think we probably still have some active subscriptions on the on actually stack Blitz as well. But we want to filter those out because we don’t.

246 00:23:16.740 00:23:17.070 Luke Daque: Right.

247 00:23:17.070 00:23:31.600 Mitchell Wright: Care about those anymore. So it’s, kinda oh, yeah, yeah, like you, when you have plan here. So like, pro pro 50 pro 200 pro 100 are like those are, gonna be the big ones like web container Api. And I don’t know what teams.

248 00:23:31.600 00:23:32.759 Uttam Kumaran: Hit, expand.

249 00:23:35.250 00:23:37.391 Mitchell Wright: Yeah. Yeah. Yeah. Yeah. Okay.

250 00:23:37.820 00:23:41.348 Uttam Kumaran: So yeah, I guess you could tell us which ones here are like

251 00:23:41.810 00:23:50.000 Mitchell Wright: Yeah, so like all the pro 5,200 100, those top 4 are are gonna be like our

252 00:23:51.220 00:23:57.050 Mitchell Wright: actual bolt individual ones, because we just rolled out

253 00:23:58.000 00:24:00.300 Mitchell Wright: like, I was saying, those yearly plans.

254 00:24:00.300 00:24:00.680 Uttam Kumaran: Separate.

255 00:24:00.820 00:24:03.420 Mitchell Wright: Those those are new.

256 00:24:03.630 00:24:09.459 Mitchell Wright: and I don’t know if professional is the is the base one of that yearly, or something like that.

257 00:24:09.460 00:24:14.780 Uttam Kumaran: I don’t know, like, I feel like, yeah, one of them. I don’t know if these yearly ones are accurate. I think maybe it’s another field.

258 00:24:15.190 00:24:17.560 Mitchell Wright: No, I actually think those yearly ones might be accurate.

259 00:24:17.893 00:24:18.559 Uttam Kumaran: Really, okay.

260 00:24:18.560 00:24:21.739 Mitchell Wright: Just barely. We just barely created them this week.

261 00:24:21.740 00:24:23.590 Uttam Kumaran: Oh, okay. Never mind. Then. Okay. Great.

262 00:24:23.590 00:24:30.250 Mitchell Wright: Yeah. So that that’s why that’s why I’m thinking that actually might be accurate. I’ll have to go through and see. And then the teams.

263 00:24:30.550 00:24:43.610 Mitchell Wright: teams, teams, 2, 10 team, 60 teams, 1 10. Those are actually accurate. But, like stack Blitz, commander like don’t know what that is. Web container Api, we’re not really selling that anymore.

264 00:24:44.375 00:24:49.060 Mitchell Wright: Stack blitz astronaut like, that’s yeah legacy. So

265 00:24:49.783 00:24:54.479 Mitchell Wright: what I could do is I can grab like the product ids for you.

266 00:24:54.950 00:25:02.070 Uttam Kumaran: So we could, or we can tag as legacy. It depends like, what mean?

267 00:25:02.070 00:25:09.849 Uttam Kumaran: Yeah. So the this is where it’s gonna start. We’re gonna find the differences between us and their metrics, because very much is not gonna filter. It.

268 00:25:10.520 00:25:11.090 Luke Daque: Yeah.

269 00:25:11.090 00:25:16.839 Uttam Kumaran: Basically. So we could do both. We could either flag it as legacy

270 00:25:17.560 00:25:20.889 Uttam Kumaran: test, or we could filter out from the base model. It’s

271 00:25:21.950 00:25:28.139 Uttam Kumaran: sort of. I am almost inclined to just keep it in and and have the option.

272 00:25:28.140 00:25:29.699 Mitchell Wright: That’s a good point. Yeah. And just.

273 00:25:29.700 00:25:32.999 Uttam Kumaran: It’ll save you. It’ll save you to answer those questions when they come up.

274 00:25:33.570 00:25:35.100 Mitchell Wright: Yeah, that’s a good idea.

275 00:25:35.540 00:25:41.780 Mitchell Wright: But yeah, cause filtering fill and filtering out by plan is gonna be a huge one. Right? Like we talked about that of

276 00:25:42.080 00:25:49.160 Mitchell Wright: right now I don’t have a great idea of, for for some of these metrics the ability to really filter out by like

277 00:25:49.600 00:26:02.292 Mitchell Wright: you know how much of that is actually coming from pro pro 50 month to month or annual. So that’s gonna be super helpful. But yeah, this is this is looking. This is starting to look really good. Actually,

278 00:26:02.610 00:26:08.390 Uttam Kumaran: So in in this we’ll we’ll also layer in. We’ll we’ll join to dim customers and layer in a couple of

279 00:26:08.510 00:26:11.660 Uttam Kumaran: things there like, so you’ll quickly be able to see

280 00:26:12.010 00:26:15.515 Uttam Kumaran: like top customers stuff like that.

281 00:26:18.040 00:26:22.239 Uttam Kumaran: Yeah, I think we’ll we’ll keep. We’ll, I think. Basically, we’ll start to add

282 00:26:22.410 00:26:28.690 Uttam Kumaran: Luke as dimensions. We’ll add the active cancel things like that. And then on the left side.

283 00:26:29.300 00:26:41.770 Uttam Kumaran: we could do total. One thing I think we’ll we’ll keep, we’ll leave the totals as like so ever subscriptions that have ever existed. But then for a given month, we’ll just break it out into currently active, canceled

284 00:26:43.450 00:26:55.319 Uttam Kumaran: basically. So we should see. Like, I mean, of course, the total amount of canceled should go up, the amount of active ever should go up. But the the currently active in the given month is gonna should stay like

285 00:26:55.450 00:27:06.249 Uttam Kumaran: shouldn’t move. Kind of linearly meaning, we want to say, is active. In October 24 is active in November 24. Not is active. Now those are different things.

286 00:27:06.880 00:27:09.270 Mitchell Wright: Yes, yes, exactly.

287 00:27:09.890 00:27:12.390 Luke Daque: I see what you get. I see what you mean. Yeah.

288 00:27:12.390 00:27:21.935 Uttam Kumaran: Yeah. So I guess I I just don’t. I? Just that. That’ll be the distinction we wanna make. And then you will have 2 ways of doing that. One is, we will have the numbers on the left side.

289 00:27:22.310 00:27:34.349 Uttam Kumaran: we’ll have the numbers on the left here. That’s that’s basically these are just metrics with fixed dimensions, which is like we will have total subscriptions, active, canceled, and then we’ll also have the dimensions here which is like

290 00:27:35.400 00:27:44.209 Uttam Kumaran: active cancel. Blah, blah blah. So if you get true, it’ll the Matt number will match. If you had false, the number will probably go to 0, so you’ll be able to do both. And then.

291 00:27:44.763 00:27:53.499 Uttam Kumaran: Luke, do you want to show the comparison stuff here? So if you just compare and let’s just do this. Let’s just do this month to last month, like for the period.

292 00:27:54.831 00:27:58.450 Uttam Kumaran: I think you could just do custom and then do probably like

293 00:28:00.520 00:28:01.170 Luke Daque: Template.

294 00:28:01.430 00:28:02.840 Uttam Kumaran: Yeah, just like.

295 00:28:03.130 00:28:06.330 Uttam Kumaran: And we can set the presets, too. But so.

296 00:28:06.330 00:28:08.069 Luke Daque: Yeah, we can set that

297 00:28:14.680 00:28:16.999 Luke Daque: in January against December.

298 00:28:18.260 00:28:20.139 Uttam Kumaran: Do by due by month.

299 00:28:23.340 00:28:29.500 Uttam Kumaran: Yeah. So if you hover over this, you’ll start to see the differences.

300 00:28:29.500 00:28:30.360 Mitchell Wright: Oh, yeah. Yeah.

301 00:28:30.360 00:28:35.350 Uttam Kumaran: If we, if we, the thing is, we only have one metric by month right now.

302 00:28:35.480 00:28:37.660 Uttam Kumaran: So it’s it’s just gonna be a flat.

303 00:28:38.120 00:28:50.980 Uttam Kumaran: It’s gonna be a flat line if we’re able to do. If we’re for example, if we can, we can break this down by day. And you’ll see, net, Mrr added, per day loss per day, and that’ll sort of smooth out this line.

304 00:28:51.646 00:29:05.270 Uttam Kumaran: But what’s actually probably more helpful here is to look at like this, which is for the given period. What was the net changes by plan? You can see that, like teams seemingly had us some a spike, although the values were less.

305 00:29:05.380 00:29:07.652 Uttam Kumaran: This is the filter

306 00:29:08.330 00:29:14.519 Uttam Kumaran: and this is just for the Mrr Metric. You can say, Mrr added by plan, and the percent.

307 00:29:14.520 00:29:16.540 Mitchell Wright: Oh, yeah.

308 00:29:16.800 00:29:20.500 Luke Daque: You can do by subscriptions. So we yeah.

309 00:29:20.650 00:29:22.340 Uttam Kumaran: So this this would be the numbers.

310 00:29:22.700 00:29:23.120 Luke Daque: Number.

311 00:29:23.120 00:29:24.510 Luke Daque: Yeah, that’s good. Yeah.

312 00:29:25.290 00:29:26.670 Uttam Kumaran: You know, and so.

313 00:29:26.860 00:29:29.090 Mitchell Wright: Interesting. Interesting.

314 00:29:30.310 00:29:33.350 Mitchell Wright: Yeah, this is great. This is gonna be really.

315 00:29:34.300 00:29:35.380 Luke Daque: Let’s see this.

316 00:29:35.380 00:29:36.470 Mitchell Wright: Really good.

317 00:29:37.360 00:29:39.269 Uttam Kumaran: Yeah, you can see like these are even.

318 00:29:39.420 00:29:42.569 Uttam Kumaran: But I’m sure the revenue profile is different.

319 00:29:43.350 00:29:43.880 Luke Daque: Yeah.

320 00:29:44.110 00:29:46.160 Uttam Kumaran: Cause. These are just customer numbers.

321 00:29:50.710 00:29:52.530 Uttam Kumaran: But if you go to total, Mrr,

322 00:29:54.220 00:30:05.639 Uttam Kumaran: it’s sort of like, basically, you could start to understand, not just net new customers, but the value per customer. So as you sell the annual contracts, of course those will be higher valued, and sort of this will be able to prove

323 00:30:05.820 00:30:10.780 Uttam Kumaran: which plans are getting the annual love versus not things like that.

324 00:30:12.390 00:30:18.499 Mitchell Wright: This is interesting like teams, for example, is a great example there of where, when you had it by year, if you filter by year again.

325 00:30:19.843 00:30:22.506 Mitchell Wright: The annual plans right? Like teams.

326 00:30:24.630 00:30:27.960 Mitchell Wright: it’s it’s interesting to just see like that.

327 00:30:28.375 00:30:28.790 Uttam Kumaran: Yeah.

328 00:30:28.790 00:30:34.115 Mitchell Wright: You know, is is a lot different that delta percent than the you know.

329 00:30:35.370 00:30:35.990 Luke Daque: Month.

330 00:30:35.990 00:30:37.810 Mitchell Wright: The non ones. But yeah.

331 00:30:38.470 00:30:39.230 Luke Daque: Let’s see.

332 00:30:39.230 00:30:42.639 Uttam Kumaran: Can we just can. We also just do the last like 6 months, maybe.

333 00:30:42.820 00:30:44.250 Uttam Kumaran: Luke, and then they’ll give us a little.

334 00:30:44.402 00:30:45.770 Mitchell Wright: I actually have to hop off. I have a.

335 00:30:46.139 00:30:46.509 Uttam Kumaran: Okay.

336 00:30:46.510 00:30:57.949 Mitchell Wright: I gotta do but this is looking great. So yeah, let’s just keep keep going. Let me know. Async. If there’s anything you need me to do, or that you’re blocked on at the moment, or any feedback you want, or anything.

337 00:30:58.330 00:30:58.830 Uttam Kumaran: Yeah, this.

338 00:30:59.750 00:31:00.890 Uttam Kumaran: Perfect alright. Thanks. Buddy.

339 00:31:00.890 00:31:01.450 Mitchell Wright: Guys.

340 00:31:01.700 00:31:02.880 Luke Daque: Thanks, thanks, guys. Bye-bye.