Feels like a good time to share a plot I put together of Dropsuite's ARR and cashflows over time. I actually decided to put this together because I looked back at my forecasts from 15 months ago and noticed my ARR forecast (just based on excel's regression trendline) was accurate to within $0.1m for the most recent quarter. Then I didn't end up sharing it because I thought the comparison of ARR growth and cashflows was lackluster.. Very impressive how predictable their ARR growth is though. I've removed my forecasts from the plots.
Zoomed in to cashflows:
The 1/01/2022 points are overlapping. The growth in cashflows becomes less impressive when you consider that they are receiving $140k per quarter in interest on their cash balance, so that provided half of the annual growth in cash receipts. Charif has really just been maintaining cashflow positivity whilst boosting investments in the team the last 12 months, hopefully he plans to step on the gas a little from here, but he has been adamant in webinars that just maintaining cashflow positive is still the plan. We will see. I also noticed the trend of the march quarter being bad for cashflows doesn't extend back any further than last year which I thought was surprising.
