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SaaS Metrics Glossary: Align Your Team | SAAS METRICS PLAYBOOK

SaaS metrics are more than cookie-cutter formulas for tracking high-level KPIs. They are dynamic growth tools that should inform the decisions your leadership team, management, and board make on a routine basis. Used well, they highlight trends,...

How to Calculate CAC (the Right Way) | SaaS Metrics Playbook

For a SaaS business, knowing exactly when and how much to invest in growth is critical to success. Overspending in areas like sales and marketing will cause a SaaS firm to burn through cash too quickly. While it’s tempting to pile on sales reps in...

How to Use the Rule of 40 | SaaS Metrics Playbook

Every SaaS founder wants to maximize their company’s value—a goal that requires high performance in two key areas: growth and profitability. In fact, the more you can demonstrate a combination of revenue growth and operational efficiency, the better...

When & How to Use SaaS Magic Number | SaaS Metrics Playbook

One of the most critical decisions a SaaS founder or CEO must make is when to invest in scaling the business. When the timing is right, a strategic investment in sales and marketing will fuel exponential revenue growth. But, when the timing is off,...

3 Ways to Calculate Churn (and Why) | SaaS Metrics Playbook

As a SaaS founder, CEO, or key stakeholder, you need a clear picture of the day-to-day health of your business. In theory, SaaS metrics can satisfy this need with basic formulas for calculating a variety of performance data. In practice, however,...

The Easiest SaaS KPI to Get Right (and Wrong) | SaaS Metrics Playbook

Picture this: you walk into your monthly board meeting, exchange hellos, and then you get hit with this question — “what did we book last month?”

Both your CEO and Head of Sales each give different answers, and it becomes clear to your board and...

How to Act on Your LTV:CAC Ratio | SaaS Metrics Playbook

The financial priorities of your SaaS business will change as you move through each growth stage. In the initial phases, you’ll likely be working toward product/market fit, with a strong focus on bringing in customers, regardless of the acquisition...

Why LTV is Misleading (& How to Address It) | SaaS Metrics Playbook

Lifetime Value (LTV) seems like a straightforward SaaS metric. Its job is to simply measure the amount of revenue generated over the duration of a customer relationship. But, as is the case with many other SaaS metrics, there’s more to it. A lot...

The Right Way to Calculate & Use ARR | SaaS Metrics Playbook

When it comes to key SaaS metrics, Annual Recurring Revenue (ARR) is the one every stakeholder has their eyes on. When a SaaS company is experiencing ARR growth, it’s a signal to founders, CEOs, investors, and others that the business is building...

SaaS Dashboard KPIs Need to Evolve (SaaS Reporting Per Growth Stage)

One of the most powerful ways to monitor the operational health of your SaaS business is through SaaS dashboards. Dashboards bring together your most important SaaS KPIs and present them in a clear and concise way that allows for data-driven...

Financial Metrics for SaaS Companies During Product/Market Fit Phase

Why do startups flop? In 2011, the team at Startup Genome found a common thread. A survey of 3,200 startups showed that, of the companies which crumbled, 70% of themtried to scale too quickly.

7 Steps to Maximize the Effectiveness of Your SaaS Metrics Software

SaaS metrics software - also known as subscription billing management software or recurring billing software - should be one of the most powerful weapons in a SaaS CEO's arsenal. The complexities of managing subscriptions are real and the costs of...

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