What is Net Negative Churn in SaaS

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What is Net Negative Churn in SaaS Net negative churn occurs when your expansion revenue from existing customers totals more than your lost revenue from existing customers.  This SaaS metric does not factor in any revenue from new customers, just existing customers. As Nathan Latka puts it in his “The Top” podcast, this is the […]

SaaS Accounting Tips for Founders

SaaS Acounting Tips for Founders

SaaS Accounting Tips SaaS accounting is probably not every SaaS founder’s favorite topic.  However, as you scale, it is critical that you implement an accounting framework that will provide you and your team the necessary data to manage your business.  In this post, I offer several actionable SaaS accounting tips for founders and their accounting […]

Committed Monthly Recurring Revenue (CMRR) Defined

Committed Monthly Recurring Revenue Chart

What is Committed Monthly Recurring Revenue (CMRR)? Committed monthly recurring revenue (CMRR) is a forward-looking SaaS metric that combines actual monthly recurring revenue (MRR) data with known bookings and churn data.  It begins with your existing MRR (say, last month’s recognized MRR), adds known new bookings, and subtracts known cancellations and downgrades. For businesses who […]

The SaaS P&L Explained – Where Metrics and Margins are Born

SaaS P&L Explained

The SaaS P&L Explained – Where Metrics and Margins are Born You can’t manage a SaaS business by only using the standard financial statements.  To really understand the underlying economics of your business, you must have a properly structured “software” P&L (Profit and Loss Statement), and you must calculate the relevant SaaS metrics and margins […]