Bessemer Benchmarks for Business Growth

Leverage Bessemer Benchmarks to plot your way to the next milestone in your business. Explore average benchmarks by ARR scale, reference data for public playbook companies, and a template for benchmarking your own business metrics. Use this valuable information for pitching, board meetings, funding announcements, and more to drive your business growth and success.

• Bessemer Benchmarks
• Business Growth
• ARR Scale
• Benchmarking
• Public Playbook

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1. Bessemer Benchmarks Plot your way to the next milestone

2. Benchmarks for your business How to use this template Leverage these slides for next pitch deck, board meeting or, if you re so bold show off your traction in your funding announcement, on your company blog, social media, or your next all hands meeting. As references, we shared benchmarks for both private cloud and public cloud companies For more granularity on where you stand, select the ARR scale slide that applies to your company, and make it your own by adding your logo and metrics. Have any questions? Raising your next round? Get in touch! mdonofrio@bvp.com Mary D Onofrio, Partner at Bessemer @mcadonofrio

3. Reference Average Benchmarks by ARR Scale $1-10MM $10-25MM $25-50MM $50-100MM $100MM+ 200% 115% 95% 60% 60% ARR Growth Rate 140% 120% 120% 120% 120% Net Retention 85% 85% 90% 90% 90% Gross Retention 70% 70% 65% 65% 70% Gross Margin 95% 70% 70% 60% 50% S&M % Revenue 95% 50% 45% 30% 35% R&D % Revenue 70% 40% 30% 20% 20% G&A % Revenue 15 24 20 21 30 CAC Payback (Mos) -230% -80% -65% -40% -35% FCF Margin 0.5x 0.5x 0.6x 0.8x 1.0x Cash Conversion Score *All margin and growth rate values in the above chart are rounded to the nearest 5% for clarity

4. Reference The Public Playbook LTM Revenue Growth LTM Net Gross Margin S&M R&D G&A FCF Revenue ($MM) Retention % Revenue % Revenue % Revenue Margin 65% $170 120% 70% 55% 30% 20% -20% Average 85%+ $170+ 135%+ 75%+ <35% <20% <15% 0%+ Top Quartile <40% <$80 <110% <60% 65%+ 35%+ 25%+ <-30% Bottom Quartile *Public Playbook companies include all previous and current BVP Nasdaq Emerging Cloud Index companies at time of IPO. Data manually taken as of most recent FY provided in S-1. Example companies are within 5% of averages.

5. Benchmarking Your Business

6. Put this box over your metrics Benchmarking [ ] from $1-10MM of ARR Add your metrics ARR Growth Net Gross Retention Gross Margin S&M R&D G&A FCF Retention % Revenue % Revenue % Revenue Margin [ Add Your Logo Here ] [ ]% [ ]% [ ]% [ ]% [ ]% [ ]% [ ]% [ ]% 200% 140% 85% 70% 95% 95% 70% -230% Average Top 230%+ 145%+ 95%+ 85%+ <45% <40% <30% -65%+ Quartile 100- 230% 105- 145% 85- 95% 60- 85% 45- 140% 40- 135% 30- 75% -270- -65% Middle 50% <100% <105% <85% <60% 140%+ 135%+ 75%+ <-270% Bottom Quartile *All values in the above chart are rounded to the nearest 5% for clarity

7. Put this box over your metrics Benchmarking [ ] from $10-25MM of ARR Add your metrics ARR Growth Net Gross Retention Gross Margin S&M R&D G&A FCF Retention % Revenue % Revenue % Revenue Margin [ Add Your Logo Here ] [ ]% [ ]% [ ]% [ ]% [ ]% [ ]% [ ]% [ ]% 115% 120% 85% 70% 70% 50% 40% -80% Average Top 135%+ 135%+ 95%+ 80%+ <50% <30% <20% -35%+ Quartile 40- 135% 100- 135% 85- 95% 60- 80% 50- 90% 30- 65% 20- 45% -115- -35% Middle 50% <40% <100% <85% <60% 90%+ 65%+ 45%+ <-115% Bottom Quartile *All values in the above chart are rounded to the nearest 5% for clarity

8. Put this box over your metrics Benchmarking [ ] from $25-50MM of ARR Add your metrics ARR Growth Net Gross Retention Gross Margin S&M R&D G&A FCF Retention % Revenue % Revenue % Revenue Margin [ Add Your Logo Here ] [ ]% [ ]% [ ]% [ ]% [ ]% [ ]% [ ]% [ ]% 95% 120% 90% 65% 70% 45% 30% -65% Average Top 110%+ 130%+ 95%+ 75%+ <50% <35% <20% -35%+ Quartile 45- 110% 105- 130% 85- 95% 55- 75% 50- 85% 35- 55% 20- 30% -90- -35% Middle 50% <45% <105% <85% <55% 85%+ 55%+ 30%+ <-90% Bottom Quartile *All values in the above chart are rounded to the nearest 5% for clarity

9. Put this box over your metrics Benchmarking [ ] from $50-100MM of ARR Add your metrics ARR Growth Net Gross Retention Gross Margin S&M R&D G&A FCF Retention % Revenue % Revenue % Revenue Margin [ Add Your Logo Here ] [ ]% [ ]% [ ]% [ ]% [ ]% [ ]% [ ]% [ ]% 60% 120% 90% 65% 60% 30% 20% -40% Average Top 80%+ 135%+ 95%+ 80%+ <45% <25% <15% -25%+ Quartile 40- 80% 105- 135% 85- 95% 60- 80% 45- 70% 25- 35% 15- 25% -50- -25% Middle 50% <40% <105% <85% <60% 70%+ 35%+ 25%+ <-50% Bottom Quartile *All values in the above chart are rounded to the nearest 5% for clarity

10. Put this box over your metrics Benchmarking [ ] at 100MM+ of ARR Add your metrics ARR Growth Net Gross Retention Gross Margin S&M R&D G&A FCF Retention % Revenue % Revenue % Revenue Margin [ Add Your Logo Here ] [ ]% [ ]% [ ]% [ ]% [ ]% [ ]% [ ]% [ ]% 60% 120% 90% 70% 50% 35% 20% -35% Average Top 80%+ 125%+ 100% 80%+ <35% <25% <15% -20%+ Quartile 35- 80% 105- 125% 90- 100% 60- 80% 35- 65% 25- 35% 15- 25% -50- -20% Middle 50% <35% <105% <90% <60% 65%+ 35%+ 25%+ <-50% Bottom Quartile *All values in the above chart are rounded to the nearest 5% for clarity