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April 30, 2025 31 mins

Stock-based Compensation (SBC) has been a hallmark of the SaaS and Cloud industry since the early days. Stock Options, Restricted Stock Units, Strike Price, and vesting periods continue to be a key discussion point for potential hires. Today's episode covers how Stock-based compensation impacts Operating Expenses on the Income Statement...and how SBC can impact SaaS metrics.

Dave "CAC" Kellogg and Ray "Growth" Rike dive into the details of Stock-Based Compensation in today's episode including:

  • What is Stock-Based Compensation (SBC)
  • How does a company pay/account for SBC
  • What kind of expense is Stock-Based Compensation
  • Where does SBC show up on an Income Statement
  • How can SBC impact SaaS metrics


Stock-Based Compensation can be a very complex and nuanced topic, but if you are a SaaS executive, a SaaS employee with stock options, or a SaaS company investor, this conversation and episode is full of detailed insights.

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