I was recently asked by a long-tenured Dyn colleague why our executives are so laser focused on such specific and aggressive annualized and multi-year growth rates.
The simple answer: sustainability.
One amazing benefit of our cloud and SaaS-based subscription business model is our ability to compound growth year-over-year. For reference, our five-year CAGR (compounding annual growth rate) compares favorably to public company darlings we follow.
With over a million paying relationships from prosumers to startups and Fortune 100s, the revenue diversity is healthy and diversified across products and segments. The levers are utilized to ensure targets are met in the most efficient and strategic ways possible. Growing at the right pace and sophistication is integral.
As we continue to offer a reliable, high-performing, and innovative product suite, we work hard to maintain existing customers that serve as a foundation to continue to attract new ones. High retention is a must. Customer advocacy is a real cherry on top. All efforts are in place to ensure this reality. Better yet, as we add new value and products to our current customer base, expansion revenue becomes an even larger percentage of our overall revenue mix (existing customers growing their relationship with Dyn). With growing overall revenue and customers who pay upfront for our usage-based services (and scale!) we can continue to invest in systems, talent, and infrastructure to evolve and mature ahead of growth, with a five year outlook at all times.
It’s a win-win for all involved and solidifies our vision of being a unique and game changing Internet Performance franchise with an exceptional end-user experience for all.
I find too many companies don’t strike a good enough balance on short-term strategic execution and long-term strategic planning. If you’re truly optimizing your business for everlasting viability, sustainability and impact, you must clearly align your growth plans with these principles in mind.
When building your company, are you thinking five years out? Are you planning your growth with sustainability as a focus? How long a view do you have? What are your business motivations? Hit me on Twitter @kyork20 or @Dyn and tell us your view.