share price, page-337

Hi Dwhale and reg,

We would all like as much data as possible. Wouldn't it be great to sit at the table with management and see their management reports and operating metrics? Unfortunately we have to do our detective work with the public information we have in front of us. However 2 points. Even though you cannot ask for numbers that are not in the public domain, you can ask the management what operating metrics they use and what they look at, as a way of assessing whether you like the way management are looking at things.

Both DH and Reg want their management team to focus on gross churn, right down to a very granular level. How many customers have reduced seats and how many customers have increased seats? What is X, the total number of seats added by existing customers? and what is Y, the total number of seats reduced by existing customers? We know that X is greater than Y (negative net churn) but do management have the breakdown of the numbers at their finger tips. We cant ask them for the number but we can ask them if it is a metric they follow. You will be shocked at how few managers will know (our former gym CEO being a case in point). It is a fair question to ask the new CFO. He has been brought in as a gnarly numbers guy! At the moment, all we know is that X is > Y but you are correct, we dont know what Y is. Some companies dont even know.