Finance & accounting

Team

Contact

Outreach and questions for the finance team can be asked in the #finance Slack channel, by reaching out to the finance@sourcegraph.com email, or to the finance team members listed above directly.

Objectives

• Provide timely and accurate financial information
• Present information in a format that allows for sound decision making
• Ensure that our Boards expectations are aligned with all teams operational objectives
• Liaise with all other teams to become trusted business partners
• Safeguard the assets of the Company

Goals

Reporting

Definitions

FY23 Budget

The FY23 plan was communicated, and approved, by the Board, at January 22, 2022. You can see the details of the plan Here. At the time of completing this plan, the expected company headcount as of year end FY22 was 252. The plan approved for an addition of 130 heads in FY23 meaning that we will exit FY23 with 382. The plan also captures significant growth for year on year investment in our marketing program spend, software spend, and professional services spend. The plan was built following detailed consultation and input from our Leadership team. We focused on the key questions:

• Where do we need to invest dollars in order to deliver incremental ARR?
• Where do we need to invest dollars in order to stay ahead of our competition?
• What other investments do we need to make in order to ensure that the business can operate efficiently and effectively, whilst maintaining ambitious growth targets?

When reviewing and finalizing our plan, we met with our investors and leveraged benchmark guidance that they were able to provide on companies who are experiencing similar growth, opportunities and challenges. We used these benchmarks to gauge our growth and spend versus this peer group.

How the plan was built

The FY23 plan was built at a departmental level. We have 9 departments:

Within each department, there are also cost centers. The cost center structure can be viewed within Bamboo. The FY23 plan was built by allocating and reviewing costs at the cost center level. This structure allowed us to be more detailed and analytical in our investment plan.

How we will monitor performance versus plan

Following each month end at FY23, the finance team will share a reporting pack with the head of each department that will outline the following:

• Cost (on a $ basis) versus plan for that month and for that quarter to date
• Updated forecast for the remainder of fiscal quarter, and year, versus plan
• Headcount versus plan
• Company level metrics
  • ARR vs plan
  • Burn vs plan

The above information will be shared via Google slides on business Day +8 following the monthly financial close. As part of this review process, Finance and Department leads will also evaluate our investments for the remainder of the fiscal year and determine if any adjustments are required. There are a number of scenarios that could require us to make an adjustment that would deviate from the plan. Some of these might include:

• A marketing program has generated a significant amount of opportunities beyond expectation.
• We want to allocate more dollars to this program.
• Our Engineering and Product team believe that there is an opportunity to invest in a feature that will have a meaningful impact on our ARR growth.
• We see inbound activity beyond what was planned and we need to adjust the hiring plan for the sales team.
• Our pace of growth is negatively impacted by adverse macroeconomic conditions. We determine that spending refinements are required in order to manage and maintain our forecasted cash position.

The monthly review that will take place between Finance and Department leads should identify the gaps and opportunities that exist. Any adjustments will be documented and provided to the VP of Operations who will provide final sign-off.

Adjustments to investment plan outside of monthly review cycle

Our goal is to ensure financial discipline, however, as a Finance team, we also do not want to constrain growth, or be slow to react when we determine that a team is lacking resources and is under prolonged pressure. We understand that there will be certain occasions where department leads may wish to make an adjustment to their budget. When a department lead determines that it is necessary to complete an off cycle adjustment to the budget, please provide the following detail:

• If headcount related, please provide the following information:
  • complete the headcount change request form
• If non- headcount related, please provide the following information:
  • What is the product, service that we are looking to purchase?
  • What is the purpose of this product or service?
  • Who from Sourcegraph will manage the vendor relationship?
  • What is the business need for the adjustment to the budget?
  • What is the opportunity loss if we do not proceed with this adjustment?

For non Headcount related requests, the above detail should be provided to the finance team via the slack #vendor-request channel. The finance team will commit to respond within 24 hours.

Accounting

Our internal Accounting team closes the books monthly and produces our financial statements. We also process payables, prepare taxes, file corporate registrations, and more.

Reach out to the Finance team for an introduction if needed.

Deal Desk

Deal Desk supports Sales on non-standard deal structures, offering collaborative support and guidance on contract components. We coordinate internal approvals of paperwork with other internal stakeholders in order to deliver compliant documents and we support throughout the deal closing process.

• All requests should be submitted to the #deal-desk slack channel.
• SLA: 1 business day.
• Additional information: Deal Desk Site
• For questions, please email us at: dealdesk@sourcegraph.com