SaaS Metrics School
Episodes
How to Benchmark Your SaaS Business
15 Sep 2023
Contributed by Lukas
In episode #64, I dive into the world of SaaS benchmarks and reports. I’ll cover my favorite benchmark data sources and reports. And how I benchmark...
Timing Mismatch Between Bookings Date and CAC
14 Sep 2023
Contributed by Lukas
Episode 63 – Timing Mismatch Between Bookings Date and CAC In episode #63, I dive into how our bookings date may affect our sales and marketing effi...
Usage-based Revenue and Your COGS Setup
13 Sep 2023
Contributed by Lukas
In episode #62, I dive into revenue and COGS when we have usage-based revenue. Or really any type of variable revenue. Our revenue streams dictate the...
Never Multiply by 12 to Annualize Your Retention Numbers
12 Sep 2023
Contributed by Lukas
In episode #61, I dive into retention math. Gross revenue retention and net revenue retention are “must-have” metrics. But it gets confusing on ho...
Net Revenue Retention is a Must-have Metric
11 Sep 2023
Contributed by Lukas
In episode #60, I dive into Net Revenue Retention. It is a “must-have” metric and required when going through due diligence. It relies on a clean ...
You Must Calculate Your Gross Revenue Retention
10 Sep 2023
Contributed by Lukas
In episode #59, I dive into Gross Revenue Retention. It is a “must-have” metric and required when going through due diligence. It relies on a clea...
Your P&L is Wrong If You Are Reporting > 10M ARR and 90% Gross Margin
09 Sep 2023
Contributed by Lukas
In episode #58, I dive into the proper SaaS P&L setup. This is fundamental to good SaaS financial management. There is a progression to our financ...
Finally SaaS Metrics Pillar 5 Focuses on Efficiency and ROI
08 Sep 2023
Contributed by Lukas
In episode #57, I dive into my 5 Pillar SaaS Metrics Framework. There is a progression to our financial maturity and our metrics. Today, let’s talk ...
SaaS Metrics Pillar 4 Focuses on Your Financial Profile
07 Sep 2023
Contributed by Lukas
In episode #56, I dive into my 5 Pillar SaaS Metrics Framework. There is a progression to our financial maturity and our metrics. Today, let’s talk ...
SaaS Metrics Pillar 3 Focuses on Your Gross Margin Profile
06 Sep 2023
Contributed by Lukas
In episode #55, I dive into my 5 Pillar SaaS Metrics Framework. There is a progression in our financial maturity and our metrics. Today, let’s talk ...
SaaS Metrics Pillar 2 Focuses on Retaining Your Customers
05 Sep 2023
Contributed by Lukas
In episode #54, I dive into my 5 Pillar SaaS Metrics Framework. There is a progression to our financial maturity and our metrics. Today, let’s talk ...
SaaS Metrics Pillar 1 is the First Stop on Your Metrics Journey
04 Sep 2023
Contributed by Lukas
In episode #53, I dive into my 5 Pillar SaaS Metrics Framework. There is a progression to our financial maturity and our metrics. A message from a new...
Is Your SaaS Company Valued on One Metric or Many?
03 Sep 2023
Contributed by Lukas
In episode #52, I dive into metrics and valuations. It’s interesting to hear investors say that they are not focused solely on one metric to value y...
Two Methods to Run Retention Analysis
02 Sep 2023
Contributed by Lukas
Two Methods to Run Retention Analysis In episode #51, I dive into how to run retention analysis. There are a lot of purists out there, but we have to ...
What is Cohort Analysis?
01 Sep 2023
Contributed by Lukas
In episode #50, I dive into cohort analysis. This is thrown around a lot in SaaS. It doesn’t apply in all situations so don’t always jump on the c...
Klaviyo’s Gross Profit Performance and OpEx Profile at Scale
31 Aug 2023
Contributed by Lukas
In episode #49, I dive into Klaviyo’s gross profit and OpEx profile. It’s really interesting to see how they are performing at scale, and it doesn...
Klaviyo’s Net Revenue Retention Formula and Performance
30 Aug 2023
Contributed by Lukas
In episode #48, I dive into Klaviyo’s net revenue retention (NRR) formula. Its formula appears pretty standard, but catch episode #47 on Klaviyo’s...
Klaviyo Filed Their S-1 and Gross Revenue Retention Formula
29 Aug 2023
Contributed by Lukas
In episode #47, I dive into Klaviyo’s gross revenue retention (GRR) formula. Wait! What? That definition does not look standard. - The standard GRR ...
What is Churn in SaaS?
28 Aug 2023
Contributed by Lukas
In episode #46, I dive into the sometimes ambiguous world of churn. Seems like this should be easy. - What is churn? - When should churn be counted in...
TCV vs ACV vs ARR
27 Aug 2023
Contributed by Lukas
In episode #45, I dive into SaaS metrics lingo. TCV, ACV, and ARR are common terms in SaaS that mean many different things. Let’s not confuse this i...
One of the Biggest SaaS Data Mistakes
26 Aug 2023
Contributed by Lukas
In episode #44, I dive into one of the biggest data mistakes that I see in SaaS. It’s your closed won opportunity data. Opp data drives reporting, a...
How to Call BS on a Bookings Forecast
25 Aug 2023
Contributed by Lukas
In episode #43, I dive into forecasts and reality. I’ve seen a lot of SaaS P&Ls and forecasts. There is a simple way to call BS on a forecast. A...
Your SaaS P&L is Wrong
24 Aug 2023
Contributed by Lukas
In episode #42, I dive into the structure of your SaaS P&L. After improving your chart of accounts, this is the second step in improving your SaaS...
What is the R&D Index?
23 Aug 2023
Contributed by Lukas
In episode #41, I dive into R&D investment efficiency. When I was researching episode 40 on the R&D Payback Ratio, I stumbled upon an article ...
What is the R&D Payback Ratio?
22 Aug 2023
Contributed by Lukas
In episode #40, I dive into R&D efficiency. I think this has always been a hard one. The correlation between R&D investment and growth. A read...
How Should I Track COGS With Usage-based Revenue
21 Aug 2023
Contributed by Lukas
In episode #39, I address COGS and usage-based revenue. It’s so important to track COGS correctly for your SaaS. Your COGS area is often dictated by...
What is Your SaaS OpEx Profile?
20 Aug 2023
Contributed by Lukas
In episode #38, I address the “bottom half” of your SaaS P&L. This is your OpEx area, or operating expenses. There is a common way to analyze ...
These Are the Top 3 SaaS Metrics Said Every Blog Post and Webinar Ever
19 Aug 2023
Contributed by Lukas
In episode #37, I address the top three SaaS metrics. And I’m sorry that this will really disappoint you. - Are there really top 3 metrics? - Top me...
The Right Metrics for the Right Stage of Your Business
18 Aug 2023
Contributed by Lukas
In episode #36, I address how to know which metrics are relevant for your stage. There are a lot of metrics to calculate, but we can easily go overboa...
What Do You Mean by a Gross Margin Adjusted CAC Payback?
17 Aug 2023
Contributed by Lukas
In episode #35, I address a nuance of the CAC Payback Period metric. It’s one of my favorite metrics and requires three inputs. - What is CAC Paybac...
ARPA | The Forgotten SaaS Metric
16 Aug 2023
Contributed by Lukas
In episode #34, I address the forgotten metric, ARPA. ARPA stands for average revenue per account. It’s such a simple metric that it is often forgot...
What is The Proper Close Date for a Software Booking
15 Aug 2023
Contributed by Lukas
In episode #33, I address close dates for our bookings data. There are two primary camps when it comes to the date of record for a Closed Won opportun...
Why CAC Is Like Debt
14 Aug 2023
Contributed by Lukas
In episode #32, I address CAC, or customer acquisition cost, and why it behaves like debt. This is important to understand as high CAC and low retenti...
System Reboot: Your ARR Has Been Corrupted
13 Aug 2023
Contributed by Lukas
In episode #31, I address the ever-changing definition of ARR. It’s so important to get this right for several reasons. It affects your metrics and ...
Does Usage-based Revenue Count as a Booking?
12 Aug 2023
Contributed by Lukas
In episode #30, I address variable revenue and software bookings. This is a hot topic in SaaS. It can be dangerous to mix subscription revenue with va...
A Renewal is Not a Booking or Is It?
11 Aug 2023
Contributed by Lukas
In episode #29, I address the nuances of renewals and software bookings. Renewals may or may not be a booking. Of course, it depends! - What is a rene...
Do Price Changes Count as a Software Booking?
10 Aug 2023
Contributed by Lukas
In episode #28, I address the nuances of software bookings. This is a common question from students in my SaaS metrics course at TheSaaSAcademy.com. D...
What is the Difference Between an Upsell and a Cross-sell?
09 Aug 2023
Contributed by Lukas
In episode #27, I address the nuances of software bookings. It’s important to track expansion ARR just like new customer ARR. There are two types of...
If I Offer Self-service SaaS Do I Still Track Bookings?
08 Aug 2023
Contributed by Lukas
In episode #26, I address software bookings. What if I offer a self-service SaaS product? Low ACV and a high volume of customers. - Are software booki...
What is a Software Booking?
07 Aug 2023
Contributed by Lukas
In episode #25, I address software bookings. Bookings are the life of a SaaS business. It’s so important to track bookings accurately, but it is oft...
The Advanced Lifetime Value Formula and Its Dangers
06 Aug 2023
Contributed by Lukas
In episode #24, I address the advanced customer lifetime value (LTV) formula. But we have to be careful how we used the advanced formula. Let's talk a...
LTV is NOT a Standalone Metric
05 Aug 2023
Contributed by Lukas
In episode #23, I address customer lifetime value (LTV) as a standalone metric. It's not! We must compare it to CAC just like CAC can’t be used as a...
Should I Use LTV If I Target High ACV Customers?
04 Aug 2023
Contributed by Lukas
In episode #22, I address customer lifetime value (LTV) when we chase mid-market and enterprise customers. Does LTV provide much value in a higher ACV...
LTV is a Point in Time Metric
03 Aug 2023
Contributed by Lukas
In episode #21, I address customer lifetime value (LTV). This is a point-in-time metric! We do not calculate this for our entire customer base. It’s...
What is Customer Lifetime Value
02 Aug 2023
Contributed by Lukas
In episode #20, I address customer lifetime value (LTV). LTV estimates the total cash flows that we will receive over the lifetime of a customer. It’...
Don’t Forget Sales Cycle Length in Your S&M Metrics
01 Aug 2023
Contributed by Lukas
In episode #19, I address how sales cycle length impacts the calculation of your sales and marketing efficiency metrics. This question always comes up...
Why is Department Coding So Important?
31 Jul 2023
Contributed by Lukas
In episode #18, I address department coding. This is the second pillar in our proper SaaS accounting foundation. First, we need a proper chart of acco...
What Is This Chart of Accounts That I Hear About?
30 Jul 2023
Contributed by Lukas
In episode #17, I address the chart of accounts or COA. It forms our accounting in SaaS. If the COA is wrong, our SaaS P&L and SaaS metrics will b...
Why Is the Rule of 40 Back in Style?
29 Jul 2023
Contributed by Lukas
In episode #16, I address the Rule of 40, a popular investor metric. As a SaaS CFO, I like to say that financial discipline never goes out of style. T...
Have You Adjusted Your Sales and Marketing Efficiency Metrics for Variable Revenue?
28 Jul 2023
Contributed by Lukas
In episode #15, I address variable revenue and sales and marketing efficiency metrics. This is Pillar 5 in my 5 Pillar SaaS Metrics Framework. Variabl...
What Time Period Should I Measure for Revenue Retention?
27 Jul 2023
Contributed by Lukas
In episode #14, I address time periods and revenue retention. This was a question from my student community enrolled in my SaaS Metrics Foundation cou...
Do You Know Your Margins by Revenue Stream?
26 Jul 2023
Contributed by Lukas
In episode #13, I address our margins by revenue stream. It’s so important to have an accurately calculated gross margin and margins by revenue stre...
How to Correctly Calculate Your Overall Gross Margin
25 Jul 2023
Contributed by Lukas
In episode #12, I address our overall gross margin. It’s so important to have an accurately calculated gross margin. It affects how you read your bu...
COGS vs. OpEx | Why Is This SO Important?
24 Jul 2023
Contributed by Lukas
In episode #11, I address COGS vs Operating Expenses (OpEx). The coding between COGS and OpEx is critical. It requires a proper department structure a...
Should Customer Success Be Coded to COGS or OpEx or Both?
23 Jul 2023
Contributed by Lukas
In episode #10, I address a hotly debated topic. Where should your customer success team be coded? And it depends, of course. It can correctly fall in...
Your SaaS Cost of Goods Sold (COGS) Is Probably Wrong
22 Jul 2023
Contributed by Lukas
In episode #9, I address your SaaS cost of goods sold. I review a lot of SaaS P&Ls, and I’d say 90% are set up incorrectly. It’s so important ...
Are You Tracking Your Renewal Rate?
21 Jul 2023
Contributed by Lukas
In episode #8, I talk about renewal rates, when it’s applicable, and how it differs from revenue retention. If you invoice annually and/or sell mult...
Your MRR Schedule Could Cost You Millions in Valuation
20 Jul 2023
Contributed by Lukas
In episode #7, I talk about the importance of your MRR schedule and the metrics that result from this schedule. It’s a top due diligence request. No...
What’s the Difference Between Forecasting, Planning, and Budgeting?
19 Jul 2023
Contributed by Lukas
In episode #6, let’s talk about planning. Or is it budgeting? Wait, no it’s forecasting. Let’s talk about the differences in these terms. Either...
Should I Segment My SaaS Metrics?
18 Jul 2023
Contributed by Lukas
In episode #5, I talk a bit about the SaaS metrics journey. Should we calculate metrics in aggregate or by segment? By customer profile or ICP? SaaS m...
CAC Payback Period | One of My Favorite Metrics
17 Jul 2023
Contributed by Lukas
In episode #4, I discuss the meaning of the CAC Payback Period. It’s a top operator and investor metric. Cash must be allocated wisely, and the payb...
What Does CAC Mean
16 Jul 2023
Contributed by Lukas
In episode #3, I discuss CAC, or Customer Acquisition Cost. CAC can be gross dollars or a unit cost. Screw up your CAC calculation and it affects CAC ...
You Need to Allocate Your Sales and Marketing Expenses Between New and Expansion
15 Jul 2023
Contributed by Lukas
In episode #2, I break down the new versus existing allocation that is needed for your sales and marketing expenses. If you are going to calculate CAC...
What is the Cost of ARR
15 Jul 2023
Contributed by Lukas
In the first episode, I talk about my favorite SaaS metric, the Cost of ARR (aka SaaS CAC Ratio). Highlights: You can calculate blended, new, and exp...