It is the company Sports Day today, so while I am starting from home, I will soon be at a sports center for a few hours of activities with colleagues. It is generally a good event and it is liked by most people, but I haven't gone for the last couple years, as last year at least, I had Covid, for the second, or third time by then.
On the bus now.
Realized I forgot gym shoes.
If anyone says anything, I will use the "Don't you know who I am?" line.
No one knows who I am, so it will leave them guessing.
It isn't only a sports day though, as the company is also celebrating a 2023 business accomplishment,
Centaur status.
That is 100M in annual recurring revenue (ARR), which is how they more accurately evaluate SaaS companies. This means that retaining all customers and selling nothing, will still bring in 100M.
In times of economic downturn, subscription services tend to see a decline - churn. However, this is a good test of whether the service is valuable or not, because if the value to the company is greater than the cost, it won't churn. The product this company creates has an almost 300% ROI on average, and therefore, an enviable churn percentage in the industry, as it is so low.
We saw when times were good in 2021, a lot of tech companies expanded rapidly, using their investor cash to buy customers and take on staff. It was always going to end in years at the next dip, because loyalty can't be bought for long, it has to be earned. Now, the cutbacks of staff have been heavy due to unrealistic expectations if continued growth in the future.
It is the same as with all the people buying into Bitcoin at the highs, because of FOMO and greed. They expect it will keep going up forever, which of course can't happen.
This is one of the employee challenges of SaaS tech, because once a company gets large enough, it needn't keep growing as aggressively, so the needs of the job change. Look at Twitter, which has had the majority of the staff fired, but is still providing largely the same service.
If skills rent transferrable to a new role, the person is gone.
I hold no illusion that regardless of what I do, my job is going to change a lot over time and if I can't adapt and pivot, i will have to find more work. This is something that worries me a little, as I am not as adaptable as I once was.
For now though, I am at the sports center, shoeless, and will meet with colleagues. Hopefully, this day will be full of fun and laughs, as well as a little exercise. Pickle Ball is on my list of activities, so at least that will be a first.
Have a great start to the weekend!
Taraz
[ Gen1: Hive ]
