that has absolutely no affect on CL1 as mentioned above. i dont...

that has absolutely no affect on CL1 as mentioned above.

i dont think people understand how much fcf this company is going to be spewing out over the next 10 years...

XRO has a LTV/CAC of 6.1 (ANZ is a crazy 11.4!).

Now CL1 doesnt have a Gross profit figure so hard to compare apples with apples but lets do a LTV/CAC for CL1 with some huge conservatism

Lets say the avg Sub stays with Class for 8 years (assuming about the same as XRO but in reality CL1 retention rate is 99.5%...in Saas land this means a customer will be with Class for 200 years! (1/churn) haha

And instead of Gross margin, lets use EBITDA margin!! Massive disadvantage to Class but lets do it!

So LTV is 8*46%*$215 (super arpu- not even including Class portfolio in this analysis) =$790

CAC is $135 as last given (the 20% increase in CAC is why the stock is down so much, but as per this analysis subs are so profitable they can afford to pay even more!)

So LTV/CAC is 5.8!! but this LTV is actually EBITDA!!!!! and its at Xero levels!