This article discusses key unit economics and efficiency metrics for SaaS businesses, including CAC payback, LTV:CAC ratio, contribution margin, and the rule-of-40. It explains how to calculate and analyze these metrics to understand the underlying profitability drivers and unit-level economics of the business.
saas-metrics
8 resources tagged with saas-metrics
An in-depth look at how to calculate, analyze, and leverage customer lifetime value (LTV) - a critical SaaS metric for understanding the long-term value of customers and optimizing acquisition and retention strategies.
Covers key revenue metrics for marketplace businesses, including gross vs. net revenue, recurring vs. non-recurring, bookings vs. billings, and other accounting-aligned measures. Explores cohort analysis, revenue waterfalls, and drivers of expansion and churn.
Discusses key metrics and analytical techniques for understanding customer retention, churn, and expansion drivers. Covers topics like logo vs. dollar churn, net revenue retention (NRR), cohort-based survival analysis, and identifying expansion opportunities through upsell and cross-sell.
An in-depth look at the technical and analytical considerations around revenue recognition, such as aligning with ASC 606/IFRS-15 rules, handling multi-element allocations, and analyzing ratable vs. point-in-time recognition patterns. Explores how to build revenue waterfalls, cohort aging tables, and other financial reporting to ensure data integrity and accounting compliance.
Understand key SaaS metrics that influence profitability, such as recurring revenue, churn, and the 'triangle of despair' - the balance between customer acquisition, retention, and revenue growth.
This article provides an in-depth overview of the key SaaS metrics that founders need to understand when preparing for fundraising. It covers critical areas like revenue recognition, unit economics, customer lifetime value, and growth metrics - all essential for showcasing the health and potential of a SaaS business to investors.
Understanding unit economics is essential for analytics professionals in SaaS and product-driven businesses. This post emphasizes how focusing on granular, per-customer profitability metrics can outlast vanity growth metrics, providing a more sustainable view of business performance. By mastering techniques to analyze customer acquisition costs, lifetime value, and other unit-level metrics, analysts can uncover crucial insights to inform strategic decision-making and drive long-term success.