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” or SaaS P&L (Profit and Loss Statement). You must also calculate the relevant SaaS metrics and margins for your business. The SaaS P&L Explained “infographic” below […]
Profitability
What the SaaS Magic Number of One is Not Telling You
Why the SaaS Magic Number of One is So Lonely The SaaS Magic Number is a sales-related SaaS metric that determines your efficiency in generating incremental recurring revenue. In the SaaS community, a SaaS Magic Number of 1 or greater is considered ideal, but should you really pour more money into sales and marketing if […]
Achieving Profitability in SaaS
Achieving Profitability in SaaS Underneath the hood, SaaS economics can get a little tricky and nuanced. Based on the economic realities of your business, do you know how fast (or slow) you are achieving profitability in SaaS? How fast a SaaS company can reach gross margin profitability is based on key SaaS metrics such as […]