The customer base said €1.92bn.
The data said something different.
A European ecommerce business. €1.92bn revenue. Customers up 32%. Every headline metric positive. A customer base that tells a more complicated story about what that revenue is resting on.
Same data. Two very different stories.
When every customer was scored using the Keystone IQ Revenue Quality Architecture™ and tracked year on year, three numbers emerged that do not appear in the equity story.
€1,196.8m
Revenue the existing base can sustain on its own
€720.6m
Annual replacement dependency to hold the €1.92bn headline
+€123.5m
Recoverable value from the existing base, no extra volume assumed
What the customer base actually showed
16.6% of customers generate 55.7% of revenue. Value-weighted churn is 7.9 points higher than the reported rate. 70% of new customers land outside the high-value spine, generating only about 20% of new-customer revenue. And 23.6% of the customer base is inactive.
None of this appears in standard reporting. All of it changes how you value the asset.
The concentration story
16.6% of customers generate 55.7% of revenue. The broader high-value band, still a minority of customers, carries most of the rest. That concentration is not visible in the headline customer count. It is visible in the movement data, and it changes how you look at the revenue the headline is really resting on.
The churn story
Reported churn is 6.2%. When you weight customers by the revenue they carried, effective churn rises to 14.1%. The customers leaving are disproportionately higher-value, so the reported rate understates the revenue impact. Over a multi-year hold, the 7.9-point gap between apparent and actual churn at value compounds, and it does not appear in the P&L.
The replacement story
The business reports €1.92bn. On observed movement rates, the existing customer base can sustain €1,196.8m. The €720.6m difference is the annual acquisition and reactivation volume required just to stand still. Four changes to retention and intake mix, none requiring more customer volume, lift that floor to €1,320.3m and unlock €123.5m from the base that already exists.
The same methodology, now applied to diligence
- Used at entry to test whether the revenue line is strong enough to underwrite.
- During hold to track whether the thesis is playing out at customer level.
- At exit to build the customer durability story before a buyer's DD team asks for it.
Three steps. Days not weeks. No PII required
Access
An anonymised transaction extract from the portfolio company. No PII. No disruption to the business. We confirm that the data is usable before the engagement formally starts, so there are no surprises on scope or timeline.
Analyse
We work at individual customer level across every transaction, not cohort averages or modelled proxies. That produces a complete picture of which customers are actually driving the revenue, how concentrated that dependency is, and what has already changed that the reported numbers have not caught yet.
Extract
A clear commercial verdict: what revenue is structurally supported, what is already on weaker footing, and the single most important action before or after close. The output is legible to the operating partner, the deal team partner, the portfolio company CMO, and the portfolio company CFO.
FAQs
Because data describes the past. Diligence is a question about the future. Someone who has run customer acquisition, retention and pricing inside a live business knows which signals are leading indicators and which are lagging artefacts. That judgement cannot be modelled. It has to be earned.
See what your customer base is really made of
Days not weeks. Fixed scope. No PII required.
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