Unit economics win in a slow market.

Meridian Analytics Q3 Board Review · $18.4M ARR · Oct 2024

CAC PAYBACK
13
MONTHS
down from 19 in Q1 2023

ARR Motion Breakdown

118%
Net Revenue Retention
74%
Gross Margin
4.2x
LTV:CAC Ratio
3.1
Quick Ratio

Monthly Cohort Retention

Cohort M1 M2 M3 M4 M5 M6
Jan 202494%91%88%85%82%79%
Feb 202493%90%87%84%81%78%
Mar 202495%92%89%86%83%80%
Apr 202496%93%90%87%84%81%
May 202494%91%88%85%82%
Jun 202492%89%86%83%
Jul 202493%90%87%
Aug 202494%91%

Best cohort: Apr 2024 at 96% M1 retention

CAC by Segment

Mid-market CAC fell 31% YoY to $8,400

The 13-Month Payback Journey

Month 0 Close Month 4 Onboarding ROI Month 8 Expansion Trigger Month 13 Fully Paid

Segment Economics

Segment ARR Gross Margin CAC Payback LTV:CAC
SMB $5.1M 69% $4,200 8mo 5.1x
Mid-Market $9.8M 76% $8,400 13mo 4.3x
Enterprise $3.5M 81% $41,000 22mo 3.2x

Segment Positioning

CAC Payback (months) → Expansion Revenue Potential → Mid-Market Core SMB Volume Enterprise Transactional

Current State

2

AE headcount

$14.2M

Mid-market addressable pipeline

Proposed State

4

AE headcount

+$6M

Incremental ARR in 18 months

"
Every cohort Meridian touches expands. The question is whether we capitalize fast enough.

— Sarah Okonkwo, VP Revenue

Approve $2.1M S&M budget + 2 AE hires.

Q4 window closes Dec 1.