Momentum Across Key Metrics
Strong Subscription Unit Economics
LTV:CAC¹ Illustrative Example
Inputs
Definition
Average Life Time
1/ Average Monthly Subscription Shipment Churn
Average Value
Average Order Value x DTC Gross Margin %
LTV
Average Life Time x Average Value
CAC
DTC Media Spend / New Subscriptions
LTV: CAC
LTV/CAC
Calculation
1/5.4%
$29.25 x 62.5%
Result (Q4 FY21)
18.5 months
$18.28
18.5 x $18.28
$338.18
÷
$13.6M / 264k
$51.47
$338.18/$51.47
6.6x
1 Life Time Value ("LTV") to CAC ("LTV:CAC") is a measure of the return on the cost to acquire New Subscriptions. This unit economics metric indicates efficiency in acquiring each New
Subscription on average. The average life time of a subscription is calculated as the inverse of the Average Monthly Subscription Shipment Churn. LTV is calculated as the Average Life Time
times the Average Value for the period. LTV:CAC is LTV divided by CAC.
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