Raf Keustermans, CEO & co-founder, Plumbee@raf_keustermans

Three Things We Learned

1. LTV = long term retention x ARPU

D30 is not long termLTV A: $9 vs B: 2.50

D30 = 9.2% D30 = 9.1%D90 = 8.3%

D90 = 0.2%

A B

2. Payback Time > ROI (for startups)

• ROI on ad spend is (obviously) a key metric.

• But startups can go bankrupt running ad campaigns with 300%+ ROI...

• Cash reserves required to run $200K/month ad spend for 12 months with 10 month payback time = $1.5M+

3. Gross Profit Margin is a thing

• Gross Profit Margin drives Net LTV

• 10% IP/content licensing gross rev share = 10% lower Net LTV = 10% impact on CPI/LTV arbitrage

• Can be worth it, e.g. if IP drives higher CTR, conversion click/install, spender conversion

• Ideally rev share after Marketing spend (agree max marketing spend as % of gross revenue with IP owner)

IncomeMobile revenue 1,961,070Total Income 1,961,070

Cost of SalesChargebacks & Credits 21,572Platform Fees 588,321Hosting 84,326IP Licensing Rev Share 196,107Total Cost of Sales 890,326

Gross Profit 1,070,74455%