SaaS Metrics Guide to SaaS Financial Performance
I’ve compiled the highlights of my SaaS metrics series into a handy guide to understanding how different financial factors affect your company. The guide includes simple rules-of-thumb and graphs that show relationships between key aspects.
It is not a comprehensive overview of SaaS metrics, but it does offer some basic information about the most important ones. This post includes charts and formulas for those who want to learn more.
Click the image to download a guide on how to measure your SaaS financial performance (PDF format)
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Original SaaS Metrics Rules-of-Thumb Posts
- SaaS Metrics Rule-of-Thumb #1 – SaaS Churn Kills SaaS Company Growth
- SaaS Metrics Rule-of-Thumb #2 – New Customer Acquisition Growth Must Outpace Churn
- SaaS Metrics Rule-of-Thumb #3 – Viral Growth Trumps SaaS Churn
- SaaS Metrics Rule-of-Thumb #4 – Company Time to Profit Follows Customer Break-Even
- SaaS Metrics Rule-of-Thumb #5 – Best Case Time to Profit is Simple Break-Even
- SaaS Metrics Rule-of-Thumb #6 – Growth Creates Pressure to Reduce Total Cost of Service
- SaaS Metrics Rule-of-Thumb #7 – Churn Creates Pressure to Reduce Total Cost of Service
- SaaS Metrics Rule-of-Thumb #8 – Upselling and Upgrades Accelerate SaaS Profitability
- SaaS Metrics Rule-of-Thumb #9 – Joel’s SaaS Magic Number
- SaaS Metrics Rule-of-Thumb #10 – SaaS Customer Lifetime Value Drives SaaS Company Value
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33 Comments
- Ruth M Aldrich says: June 6, 2020 at 7:16 am Wow, super helpful! Thanks for taking the time to demystify churn, Steli. As a complete noob to SaaS metrics, I feel way more prepared to grapple with this concept after reaading your article! Cheers. Reply
