There are a ton of SaaS metrics measuring sales efficiency, margins, revenue, and more. These are all important metrics (depending on the stage of your business) that you should be constantly monitoring in your SaaS organization. But I have a gut feeling that we are missing an important metric around organizational efficiency. Something that will […]
SaaS Metrics
How to Calculate and Understand the SaaS Quick Ratio
What is the SaaS Quick Ratio? You work hard to land new customers, but then you see your revenue growth and cash slip away through customer downgrades and churn. Enter the SaaS Quick Ratio. Different than the SaaS Magic Number which measures the efficiency of your recognized revenue growth against your sales and marketing spend, […]
Committed Monthly Recurring Revenue (CMRR) Defined
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 […]
Two Key SaaS Metrics that Predict Your Company’s Potential Size
Two Key SaaS Metrics that Predict Your Company’s Potential Size I remember as a kid when doctors would try to predict your full-grown height based on a few measurements. Well, what if I told you I can do the same thing for your SaaS company but with more accuracy? Give me three numbers, and I […]
Customer Acquisition Costs (CAC) – A Key SaaS Metric
How I Calculate Customer Acquisition Costs (CAC) As a CFO of a subscription-based software company, unit economics are very important to understand in this role. At the top of my SaaS metrics lists is Customer Acquisition Costs (CAC). With CAC and otther SaaS metrics, I can assess the true health of the business and the […]