Analysis on Employee Roles in Saul stocks

Business Development(BD) and Sales roles are the pipelines that generate near term and future revenue. The below data are my thoughts and analysis with data from linked-in.

Interestingly, Crowdstrike has nearly 1/3 of its employees in sales that generate $1B while TTD has half the employee count (only 18% of its’ workforce are sales roles). 1227 vs 359 in employee count in sales roles really stands out to me. This provokes me to think more deeply about what is “recurring revenue”, customer churn/retention, and the impact of landing large customers and how it relates to sales roles.

Another stand out is Upstart, with a miniscule count of 30 people in BD roles and 41 in Sales. A very low single digit % of workforce is “generating” $472M TTM. I think it is interesting to think about their possibility to generate $1B in revenue with only 100 or so employees in Sales roles vs the need to have 1000+ people.


**Company	         Rev$M TTM  TTL Employees   BD Roles  BD % of TTL  Sales Roles  Sales % of TTL**
Crowdstrike	 $1,014     4038	    349	      9%	   1227	        31%
The Trade Desk	 $1,004     1982	    264	      14%	   359	        18%
Datadog	         $764 	    2893	    78	      3%	   742	        26%
Cloudflare	 $530       2270	    170	      8%	   477	        21%
Upstart	         $472 	    1049	    30	      3%	   41	        4%
[Monday.com](http://Monday.com)	 $222 	    982	            54	      6%	   171	        18%
Global-e	 $190 	    346	            34	      10%	   21	        6%

**KPI - Revenue $M per Sales + BD Role, (Higher = less people managing more money)**
Crowdstrike	 0.64 
The Trade Desk	 1.61 
Datadog	         0.93 
Cloudflare	 0.82 
Upstart	         6.65 
[Monday.com](http://Monday.com)	 0.99 
Global-e	 3.45 

**Total Head Count Growth** 
Company 	        6M	1YR	2YR
Upstart (UPST)	        57%	112%	246%
Datadog (DDOG)	        19%	36%	116%
Global-e (GLBE)         18%	45%	88%
Crowdstrike (CRWD)	17%	41%	108%
The Trade Desk (TTD)	17%	31%	57%
[Monday.com](http://Monday.com) (MNDY)	15%	48%	188%
Cloudflare (NET)	15%	32%	88%

Huge hiring at Upstart, compared to other Saul Stocks in recent months! 

**Business Development Roles Growth**
Company	                6M	1YR
Upstart (UPST)	        36%	58%
Crowdstrike (CRWD)	32%	64%
The Trade Desk (TTD)	29%	41%
[Monday.com](http://Monday.com) (MNDY)	29%	54%
Global-e (GLBE) 	10%	31%
Datadog (DDOG)	        8%	3%
Cloudflare (NET)	8%	29%

Interestingly Datadog has never hired much in Business development roles. No need to explore
other sales enablement opportunities? Maybe just to speculate here that CRWD,TTD,Monday are
tapping out their existing markets and looking for new ways and opportunities?

**Sales Roles Growth**
Company	                6M	1YR
Upstart (UPST)	        143%	325%
[Monday.com](http://Monday.com) (MNDY)	32%	58%
Datadog (DDOG)	        21%	34%
The Trade Desk (TTD)	18%	27%
Crowdstrike (CRWD)	17%	34%
Global-e (GLBE)	        11%	18%
Cloudflare (NET)	7%	27%

Heavy hiring at Monday and Datadog, Upstart also has heavy hiring but off a small base. 

**Recent 2021 Hires in Management Roles** 
Management hires may indicate what the short-mid-term initiative focus is on.

**Global-e**

VP Corporate Dev	 Sept
Chief Revenue Officer	 July
VP Cust. Success Japan	 July
VP Sales Eastern Region	 May

Focus on Revenue Generation, Japan

**Upstart** 
No Management hires in 2021
	
**CrowdStrike**	
VP SEC, M&A, Stock, Tech. Accounting and Admin	Sept
VP Central Region Europe	                Aug
VP Corporate Marketing	                        Aug
VP HR	                                        June
Chief Information Officer and VP Operations     June
VP Product and Technical Marketing	        May
VP Marketing Planning and Operations	        May

Focus on Operations, EU.

	
**The Trade Desk**
VP Product Marketing	                August
VP Data Partnerships - EMEA & APAC	July
Chief Privacy and Product Counsel	June
VP Client Development APAC	        June
VP Client Services East	                June
VP Business Development - Midwest	April

Focus on Business Development and APAC, EU.

**Datadog**	
SVP Engineering	              August
VP Engineering, Core Storage  June
Chief Operating Officer	      May
VP of Product Management      May
VP of Security Engineering    April
VP of Marketing 	      April

Focus on Product Engineering and Development.	

**[Monday.com](http://Monday.com)**	
CFO	                      March
Chief Info Security officer   Feb

**Cloudflare**
RVP Sales Northeast	      Sept
RVP Sales Southeast	      Aug
VP Customer Success APJC      July
VP Global Pre Sales	      June
VP and GM APJC 	              March
VP Global Sales Enablement    Feb

Focus on Sales USA, Global, Asia

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Thanks for that, interesting analysis. Does the nature of recurring revenue alter your numbers?

For example, CRWD had a Dollar based retention rate of 125% in the last quarter. So $1000 in annual recurring revenue should end up being $1250 in year+1, and $3050 in y+5.

Assuming a customer stays… 5 years? The $M/sales person calc becomes a Life-time-value/sales person calc. ie,

1014/(1227+349) = 0.64

becomes:

3094/(1227+349) = 1.96

It seems unlikely to me that customers will jump from CRWD to something else after 5 years.

cheers
Greg

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For example, CRWD had a Dollar based retention rate of 125% in the last quarter. So $1000 in annual recurring revenue should end up being $1250 in year+1, and $3050 in y+5.

Oh it’s even lots more than that!

A salesman who brings in
$1000 in the first year, has brought in what turns into:
$1250 in the second year, and
$1562 in the third year, and
$1953 in the fourth year, and
$2441 in the fifth year, for a total of:

$8206 over the first five years, and rising every year.

Which is why SaaS companies are willing to spend so much on S&M. Every dollar they bring in stays with them essentially forever, and grows besides.

And this thread is off-topic for our board as we are supposed to be discussing individual high growth stocks, not lists of them. I won’t delete it, but let’s take any more discussion off-board.

Saul

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