Run the Numbers

Bill Koefoed, CFO of OneStream Software, sits down with CJ for an in-depth look at the company’s recent IPO journey. Bill sheds light on the events that resulted in OneStream's stock soaring from $20 to $27, a 34% leap, on day one despite market uncertainties. He shares insights on the decision-making process leading up to going public, the challenges faced during their roadshow, and the unique experiences they had along the way. He also delves into building the book for investors and the metrics OneStream prioritizes. With experience at Microsoft, Bill discusses what it was like working in their investor relations, his time with Steve Ballmer, and his role in Microsoft’s acquisition of Skype. He shares lessons from his journey on transparency, handling tough news, and the qualities that set extraordinary CFOs apart. This episode provides a comprehensive look at the intricacies of taking a company public and the ongoing responsibilities of a public company CFO.

If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.

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SPONSORS:

Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.

Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today.

Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.

Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.

NetSuite provides financial software for all your business needs. More than 40,000 companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅, head to NetSuite https://netsuite.com/metrics and get the CFO’s Guide to AI and Machine Learning.

Operators Guild is where the best CEOs, CFOs, VPs of finance, and BizOps leaders in the business connect, network, and grow together. Built by operators for operators, this members-only community is home to more than 1000 of the most elite high-growth operators in the world. Experience connection and knowledge share with professionals who understand you like no one else does. Learn more and apply at operators-guild.com.

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FOLLOW US ON X:

@cjgustafson222 (CJ)

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TIMESTAMPS:

(00:00) Preview and Intro

(02:21) Sponsor – Maxio | Leapfin

(04:49) How OneStream Software Decided to Go Public

(07:16) The Pros of Going Public When No One Else Is

(07:48) Metrics and Criteria for IPO Readiness

(08:59) The State of the Market on the Day OneStream Software Went Public

(11:11) The Art and Part Science of a Day-One IPO Pop

(15:31) Building the Book for Investors

(18:02) Sponsor – Mercury | NetSuite | Operators Guild

(21:31) The Mix Between Long-Only and Hedge Funds

(22:55) What Matters the Most in IPO Prep

(28:17) Why Bill Shares ARR and NRR Metrics to the Public

(30:42) The Most Important Metric for a SaaS Company

(31:46) Learnings as a Public Company CFO

(34:27) Bill’s Learnings from Investor Relations at Microsoft

(37:14) Working with Steve Ballmer

(37:34) The Acquisition of Skype

(41:12) The Most Critical Moments on Bill’s Path to CFO

(43:23) The Qualities That Differentiate Great CFOs

(44:55) Long-Ass Lightning Round: The Skill of Asking for Help

(48:11) Finance Software Stack

(50:48) Craziest Expense Story

In this episode, CJ interviews Adam Berg, CFO of Zero Hash, about the evolution of financial services infrastructure and the role of crypto in accelerating this change. With Zero Hash’s clients including the likes of Stripe, Interactive Brokers, Franklin Templeton, Shift4, and BlackRock, Adam discusses the importance of blockchain, not just as an asset class but as a fundamental technology that enhances value transfer and settlement processes. He highlights the differences in business models within the fintech ecosystem and the critical need for balance sheet evaluation and liquidity management. Adam talks about the complexities of a B2B2C business model, the challenges and strategies of managing macroeconomic conditions as a CFO, and the importance of a resilient tech stack. He shares insights on the build versus partner framework and explains why he believes that margin compression and price optimization can actually hurt end users in the long run. You’ll also hear advice for anyone pursuing a career in finance as Adam reflects on pivotal career decisions.

If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.

—

SPONSORS:

Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.

Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.

NetSuite provides financial software for all your business needs. More than 40,000 companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅, head to NetSuite https://netsuite.com/metrics and get the CFO’s Guide to AI and Machine Learning. 

Operators Guild is where the best CEOs, CFOs, VPs of finance, and BizOps leaders in the business connect, network, and grow together. Built by operators for operators, this members-only community is home to more than 1000 of the most elite high-growth operators in the world. Experience connection and knowledge share with professionals who understand you like no one else does. Learn more and apply at operators-guild.com. 

Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.

Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today. 

—

FOLLOW US ON X:

@cjgustafson222 (CJ)

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TIMESTAMPS:

(00:00) Preview and Intro

(02:08) Sponsor – Mercury | NetSuite

(04:59) The Evolution of Financial Services Infrastructure over the Last 10 Years

(08:03) The Role of Blockchain Technology in This Infrastructure

(11:04) Investing in Web3 out of Belief in Future Versus Fear of Missing Out

(13:44) How Value Is Stored and Moved: Web3 or Inevitable Progress

(17:31) Sponsor – Operators Guild | Maxio | Leapfin

(21:01) The Dynamics of Operating a B2B2C Business Model

(24:53) Zero Hash’s Recurring and Reoccurring Revenue

(26:16) Macro Conditions and the Resiliency of the Tech Stack

(29:51) Why Zero Hash Minimizes Balance Sheet Exposure to Digital Assets

(32:12) Hedging in the Digital Asset Space

(33:18) The Bear Case for Crypto

(35:15) Build Versus Partner Frameworks

(40:33) How Margin Compression and Price Optimization Can Hurt End Users

(45:15) Long-Ass Lightning Round: A Life-Changing Phone Call

(50:57) Finance Software Stack

(52:47) Craziest Expense Story

Ganapathy Subramaniam, CFO of TerraPay, joins CJ for a deep dive into the complex world of cross-border payments. Together they unpack the complexities of moving money internationally, such as high fees, slow processing times, and the lack of transparency. Ganapathy sheds light on the global payment landscape, highlighting key transaction corridors and the wallet share of different regions. He delves into TerraPay's business model, explaining how they monetize their payment infrastructure and manage FX margins, before sharing his perspective on trends shaping cross-border payments over the next five years. The conversation also covers the evolving role of the CFO which GS characterizes as the “chief value creation officer” before breaking down what he believes are the the pillars for creating value. The episode concludes with insights into the qualities that set great CFOs apart, offering a roadmap for finance leaders looking to elevate their roles and impact.

If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.

—

SPONSORS:

NetSuite provides financial software for all your business needs. More than 40,000 companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅, head to NetSuite https://netsuite.com/metrics and get the CFO’s Guide to AI and Machine Learning.

Operators Guild is where the best CEOs, CFOs, VPs of finance, and BizOps leaders in the business connect, network, and grow together. Built by operators for operators, this members-only community is home to more than 1000 of the most elite high-growth operators in the world. Experience connection and knowledge share with professionals who understand you like no one else does. Learn more and apply at operators-guild.com.

Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.

Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today.

Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.

Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.

—

FOLLOW US ON X:

@cjgustafson222 (CJ)

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TIMESTAMPS:

(00:00) Preview and Intro

(01:45) Sponsor – NetSuite | Operators Guild

(04:27) Why Moving Money Across Borders Is So Difficult

(10:20) P2P Versus B2B and the B2B Nature of TerraPay

(12:10) The Wallet Share of Different Regions Internationally

(14:19) Key Transaction Corridors

(16:01) Sponsor – Maxio | Leapfin | Mercury

(19:10) Why Instant Payments Take So Long in Some Corridors

(21:07) The Role of FX Margins in TerraPay’s Business Model

(22:50) Key Trends Shaping Cross-Border Payments in the Next Five Years

(25:58) The CFO as the Chief Value Creation Officer

(28:04) How the CFO Role Has Evolved over Time

(30:24) Pillars for Creating Value as a CFO

(37:18) The Company’s Maturity as a Factor in Value Creation

(39:24) The Qualities That Separate Good CFOs from Great CFOs

(41:06) Long-Ass Lightning Round: Communication and Solution Oriented Mindsets

(44:13) Finance Software Stack

(46:27) Craziest Expense Story

Scott Voss, Managing Director of Boston’s preeminent private markets firm HarbourVest, joins CJ for an in-depth exploration of secondaries, continuation vehicles, and sidecar funds. Scott starts by outlining HarbourVest's value proposition and investment strategies, covering primary investments, secondaries, and direct co-investments while underscoring the importance of private market access for diversified portfolios. He shares the framework HarbourVest uses to identify and support emerging fund managers ahead of their success, and the process of due diligence and evaluation. Scott sheds light on how continuation vehicles work in the private equity space and other trends or innovations he has identified. The discussion also covers the complexities of succession planning within private equity firms, the evolving landscape of global entrepreneurship and venture capital internationally, and Scott’s views on AI.

If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.

—

SPONSORS:

Operators Guild is where the best CEOs, CFOs, VPs of finance, and BizOps leaders in the business connect, network, and grow together. Built by operators for operators, this members-only community is home to more than 1000 of the most elite high-growth operators in the world. Experience connection and knowledge share with professionals who understand you like no one else does. Learn more and apply at operators-guild.com.

Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.

Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today.

Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.

Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.

NetSuite provides financial software for all your business needs. More than 40,000 companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅, head to NetSuite https://netsuite.com/metrics and get the CFO’s Guide to AI and Machine Learning.

—

FOLLOW US ON X:

@cjgustafson222 (CJ)

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TIMESTAMPS:

(00:00) Preview and Intro

(01:46) Sponsor – Operators Guild | Maxio

(05:02) HarbourVest’s Value Proposition

(09:39) Accessing the Private Market

(11:28) Investing in Early Fund Managers Ahead of Their Success

(13:13) The Process of Due Diligence and Evaluation

(14:20) Identifying Investments Versus the Ability to Access the Right People

(16:16) Sponsor – Leapfin | Mercury | NetSuite

(19:35) How Continuation Vehicles Work in the Private Equity Space

(23:27) Quality Versus Timing When It Comes to Continuation Vehicles

(24:04) Other Trends or Innovations in the Space

(26:19) Sidecar Funds

(28:07) Succession Planning in VC and PE Firms

(32:17) GP Stake Funds

(34:28) How Succession Planning Is Likely to Evolve over Time

(35:13) Private Equity in the Capital Markets and the State of Global Entrepreneurship

(37:25) Sequestering International Versus Domestic Investments

(40:31) The Potential Emergence of China as a Sci-Fi Innovation Hub

(42:48) Scott’s Take on AI

(44:09) Career Insight: Luck Versus Talent

(47:35) Advice About Hobbies

(50:26) Wrap

In this episode, CJ Gustafson interviews Lily Yang, CFO of Strava, to delve into the company's business model, growth strategies, and the role of community engagement in driving user retention. They discuss how Strava's business model has evolved as they've moved into diverse activities, demographics, and countries. Lily sheds light on Strava’s growing revenue streams and the impact of brand partnerships in boosting both reach and revenue. She provides insight into the importance of retention for subscription-based B2C businesses, revealing how Strava forecasts for a consumer base marked by variable activity and seasonality. They talk about the conversion rate from free to paid, Strava’s strategy to stay competitive in a crowded digital fitness market, and what’s next for the company. Finally, Lily shares career insights, recounting challenges as a minority in finance, pivotal career-shaping moments, and valuable advice for aspiring finance professionals.

If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.

—

SPONSORS:

Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today.

Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.

Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.

NetSuite provides financial software for all your business needs. More than 40,000 companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅, head to NetSuite https://netsuite.com/metrics and get the CFO’s Guide to AI and Machine Learning.

Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.

—

FOLLOW US ON X:

@cjgustafson222 (CJ)

—

TIMESTAMPS:

(00:00) Preview and Intro

(01:36) Sponsor – Leapfin | Mercury

(03:55) The Evolution of How Strava Makes Money

(06:47) How Strava’s TAM Has Changed as It’s Expanded

(08:36) Strava’s Ideal Customer Profile

(11:12) How Strava Works with Run Clubs

(12:22) The Role of Brand Partnerships

(14:44) B2C Retention

(16:25) Sponsor – NetSuite | Maxio

(18:55) Gamification

(19:59) Active Users and Retention Rates

(24:24) Subscription Forecasting and Variability

(30:16) Forecasting for Free Users

(33:02) Conversion Rates in This Model

(34:40) Strava’s International Reach

(35:43) What’s Next for Strava

(37:12) Staying Competitive in a Saturated Market

(40:27) Navigating Biases as a Minority in Finance

(42:42) Tips for Positive Self-Talk

(44:16) Moments That Have Shaped Lily’s Career

(46:50) Long-Ass Lightning Round: Comfort Zones and Running with Bad News

(49:23) Finance Software Stack

(49:55) Craziest Expense Story

Kyle Poyar, author of Growth Unhinged and a leading expert in pricing, packaging, and product-led growth, joins CJ for this episode. Together they explore the evolving landscape of SaaS metrics in the age of AI with a focus on the paradigm shift from access-based pricing to outcome-based models. They also examine success-based pricing and how to attach metrics to these models. The discussion delves into AI’s impact on ARR (annual recurring revenue), questioning its relevance in this new era and the implications of these changes for CFOs, who must now navigate more complex revenue structures and margins. As AI reshapes the industry, Kyle and CJ discuss the potential rise of professional services revenue, which SaaS metrics may fall by the wayside and what new metrics will emerge. This episode provides deep insights into the future of SaaS pricing in the age of AI and the metrics that will define success.

If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.

—

SPONSORS:

Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.

Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.

NetSuite provides financial software for all your business needs. More than 40,000 companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅, head to NetSuite https://netsuite.com/metrics and get the CFO’s Guide to AI and Machine Learning. 

Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.

Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today. 

—

FOLLOW US ON X:

@cjgustafson222 (CJ)

@poyark (Kyle Poyar)

LINKS:

Growth Unhinged: www.growthunhinged.com 

Kyle on LinkedIn: www.linkedin.com/in/kyle-poyar 

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TIMESTAMPS:

(00:00) Preview and Intro

(01:50) Sponsor – Mercury | NetSuite

(06:05) AI Pricing Versus Conventional SaaS Pricing

(09:32) Defining an Agent or “Agentic” AI

(12:41) Charging per Work Completed Versus Access-Based

(14:51) Usage-Based Versus Success-Based Pricing

(16:04) The Challenges of Success-Based Pricing

(17:34) Sponsor – Maxio | Leapfin

(19:50) Attaching Metrics to Success

(26:22) Moving from Recurring Revenue to Reoccurring Revenue

(29:03) Establishing Baselines and Fixed Budgets

(31:04) The Ability to Prove Strong ROI

(34:52) The Limitations of ARR in This AI Model

(38:10) Rethinking ARR and How We Use It

(39:28) The Future of Professional Services Revenue

(43:43) New Positions for People in the Go-to-Market Strategy

(47:51) The Effect of AI and the Development of In-House AI Platforms on Renewal Rates

(50:39) Which SaaS Metrics Will Fall Away in the AI Pricing World

(51:49) New Metrics to Pay Attention To

(54:07) Wrap

In this episode, CJ sits down with Marc Greenberg, former VP of Finance & Strategy at Pixar and current CFO at Altruist, for a fascinating conversation about his career in finance. Marc sheds light on the complex budgeting process at Pixar and the long lead times, challenges, and seasonality of the movie industry. He explains how decisions are made about sequels and other financial considerations involved. The conversation also covers the acquisition of Pixar by Disney in 2006 and his firsthand experience with Steve Jobs. Marc then discusses his current role at Altruist, a modern vertically integrated custodian built exclusively for RIAs. He touches on key metrics like lifetime value and customer acquisition costs. He also talks about the evolving role of CFOs, the impact of AI on financial operations, and the lessons learned from taking a company public. Marc offers valuable advice on hiring, feedback, and the value of storytelling in the CFO role, before sharing some of the the craziest expense stories we’ve ever heard on the show.

If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.

—

SPONSORS:

NetSuite provides financial software for all your business needs. More than 40,000 companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅, head to NetSuite https://netsuite.com/metrics and get the CFO’s Guide to AI and Machine Learning. 

Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.

Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today. 

Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.

Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.

—

FOLLOW US ON X:

@cjgustafson222 (CJ)

—

TIMESTAMPS:

(00:00) Preview and Intro

(02:28) Sponsor – NetSuite | Maxio

(05:02) Learning the Art of Storytelling at Pixar

(08:57) The Most Successful Movies from Marc’s Time at Pixar

(10:57) Budgeting for Movies with Long Lead Times

(14:27) The Seasonality of the Film Industry

(17:44) Sponsor – Leapfin | Mercury

(19:41) Merchandise as a Revenue Stream

(22:10) Disney’s Acquisition of Pixar and Lucasfilm

(24:46) Meeting Steve Jobs

(25:26) What Altruist Does

(29:15) Altruist’s Customers and LTV

(33:20) How Strong Retention Relates to CAC

(37:51) Marketing to the Consumer Versus the Advisor

(40:23) AI and the Changing Role of the CFO

(43:15) Learnings from Taking Blend Public

(47:47) Advice to First-Time CFOs

(48:36) Qualities That Make a Great CFO

(49:29) Feedback, Patience, and Relationships in the Long-Ass Lightning Round

(52:43) Finance Software Stack

(53:22) Craziest Expense Story

In this episode, CJ interviews Naeem Ishaq of Checkr, Inc., and three-time CFO. Naeem shares insights into what a CFO should aim to accomplish in their first 100 days at a new company, including key topics for their first board meeting and the importance of training the board on relevant metrics. The discussion delves into navigating diverse business models, where Naeem unpacks the nuances of forecasting for consumption-based versus SaaS models, including the application of deterministic and probabilistic modeling. Naeem is possibly the first CFO to be a guest on this show that uses AI and large language models significantly in revenue forecasting. He sheds light on how he does this, highlighting the best variables for these models. Having experienced the crypto winter during his time at Circle and the Covid pandemic during his time at Checkr, Naeem also gives helpful advice about managing volatility in business. 

If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.

—

SPONSORS:

Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.

Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today. 

Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.

Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.

NetSuite provides financial software for all your business needs. More than 40,000 companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅, head to NetSuite https://netsuite.com/metrics and get the CFO’s Guide to AI and Machine Learning. 

—

FOLLOW US ON X:

@cjgustafson222 (CJ)

—

TIMESTAMPS:

(00:00) Preview and Intro

(02:15) Sponsor – Maxio | Leapfin

(04:59) A CFO’s First 100 Days at a New Company

(06:47) Topics for Your First Board Meeting

(09:24) Training Your Board on the Metrics or “Templatizing”

(10:24) Realigning Expectations on the Business Forecast

(11:33) Takeaways or Accomplishments from the First Year

(12:41) Building Relationships with the C-Suite

(15:44) Sponsor – Mercury | NetSuite

(17:54) Aligning with the CEO

(21:10) Forecasting for Consumption-Based Versus SaaS Models

(23:25) Deterministic Versus Probabilistic Modeling

(25:18) Using LLMs for Revenue Forecasting

(27:55) Metrics for Consumption-Based Models

(32:47) Managing Volatility in Business Models

(36:19) Unique Seasonality

(38:40) Adjusting to the Crypto Winter at Circle

(42:35) Coping with the Pandemic at Checkr

(48:01) Working with Balaji from Coinbase

(50:20) Long-Ass Lightning Round: Patience and Living in the Moment

(53:10) Finance Software Stack

(54:47) Craziest Expense Story

In this solo episode, CJ provides a comprehensive guide on annual planning and delves into the complexities of budgeting for hypergrowth companies. He covers topics such as building sales capacity, modeling out rep time, over-assignment, designing marketing budgets, and costing out the full P&L. He discusses the role of various departments in the annual planning process, including R&D (Research & Development), marketing, sales, customer success, and customer support. The podcast highlights the significance of headcount in budgeting, the intricacies of sales capacity modeling, and the necessity of interdepartmental collaboration. CJ offers practical tips for managing expenses, planning for future growth, and ensuring that sales teams are adequately supported to meet their targets. The episode is a deep dive into the strategic and operational aspects of financial planning in high-growth environments.

If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.

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SPONSORS:

Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today.

Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.

Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.

NetSuite provides financial software for all your business needs. More than 38,000 thousand companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅ NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.

Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.

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FOLLOW ME ON X:

@cjgustafson222 (CJ)

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TIMESTAMPS:(00:00) Preview and Intro(01:20) Sponsor – Leapfin | Mercury(03:54) Key Stakeholders in the Annual Planning Process(06:02) Bottoms Up Versus Tops down Budgets(09:00) Creating a Budget Envelope(12:53) Sponsor – NetSuite | Maxio(14:50) Building Sales Capacity(17:00) Quota to OTE Ratio(18:07) Ramping(21:00) Over Assignment(23:08) Seasonality(24:56) The Sales Pod and Surrounding Resources(26:45) Sales Capacity Planning Mistakes(32:25) Marketing: Generating Pipeline Coverage(33:23) Over-Assignment in Marketing(35:01) The Marketing Funnel(38:34) Setting the Pace of the Marketing Pipeline(39:30) Tracking Marketing Costs(41:05) Common Mistakes with the Marketing Budget(43:42) Expenses: Follow the Headcount(45:53) A List of Possible Expense Types(49:05) The Three Buckets of Cost of Goods Sold(50:16) Cost Benchmarks at Department Level(53:47) Laptops(54:22) Annual Bonuses(56:14) Tips for Budgeting for Hypergrowth(1:02:08) Wrap

Michael Linford, the COO and CFO of Affirm joins CJ to delve into the Buy Now, Pay Later (BNPL) business model and its rise to mainstream popularity. They discuss the importance of transparent, consumer-friendly financial products and how Affirm differentiates itself by avoiding the predatory practices common in traditional credit models. Michael explains how Affirm structures its fees and generates revenue. He sheds light on the company’s approach to credit underwriting and the significance of short loan durations. The conversation also covers key metrics like customer acquisition and lifetime value, whether the merchant or end consumer should be the focus, and why Affirm doesn't rely on a North Star metric. Michael also shares his thoughts on the company’s approach to managing economic swings, before sharing advice on balancing patience with ambition in one's career and the value of an engineering-based approach to problem-solving.

If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.

—

SPONSORS:

Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.

Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.

NetSuite provides financial software for all your business needs. More than 38,000 thousand companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅ NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.

Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.

Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today.

—

FOLLOW US ON X:

@cjgustafson222 (CJ)

—

TIMESTAMPS:

(00:00) Preview and Intro(02:37) Sponsor – Mercury | NetSuite(04:17) The History of the Pay-Over-Time Business Model(07:57) The Middle of America and Paying Manually(11:17) The Need for Honest and Transparent Credit(16:06) Sponsor – Maxio | Leapfin(18:27) How Affirm Makes Money(23:03) Affirm’s Credit Underwriting Process(26:00) Affirm’s No-Consumer CAC Model(29:43) Why Affirm Has No North Star Metric(34:15) Managing Economic Swings and Consumer Sentiment(39:52) The Impact of Purchase Size(44:13) Why Deferred Interest Products Are Immoral(48:56) An Engineer’s Approach to Being a CFO(53:40) Balancing Patience with Ambition in Your Career(56:11) Long-Ass Lightning Round: Taking Feedback(1:00:01) Craziest Expense Story