SaaS Metrics School
390 episodes — Page 4 of 8
Can Your SaaS Beat the $1.50 Labor Efficiency Test?
In episode #240, I’m sharing one of my favorite metrics. The ROSE Metric. This metric is key to a sustainable SaaS business, especially if you are struggling to reach profitability. Can you beat $1.50? - What is the ROSE Metric? - Why is $1.50 so special? - Easily calculate your ROSE Metric Download the ROSE Metric template in my templates course: https://www.thesaasacademy.com/pl/2148292708
What’s the Impact of This Customer Downgrade Scenario?
In episode #239, I’m addressing a reader's question. Thanks, John! Here’s the scenario. The customer books an annual contract at $24K ARR / $2K MRR. In Month 6, they are unhappy with the service and want to leave. The sales rep convinces them to stay and signs them up for a $12K ARR / $1K MRR contract. In addition, the sales rep convinces them to extend service for another 12 months starting at month 6. Do we count this as churn? Do we count this as a downgrade? What is the downgrade amount? Find out how this impacts bookings and retention. Join my SaaS community for training, events, templates, and more!
Don’t Make This Top Mistake in MRR Due Diligence
In episode #238, I’m sharing big mistakes that I see in MRR schedules. And this always happens to pop up in due diligence. This WILL limit your valuation as a seller. And it makes it hard to value SaaS businesses as the buyer. - MRR schedule - MRR waterfall - I must be able to calculate your retention - What I need to calculate retention Join my SaaS community for training, events, templates, networking, and more!
My Top Critiques of Your 3 to 5 Year Forecast
In episode #237, I’m sharing tips and tricks from coaching calls on long-term forecasting. These are not easy. We have to take a step back and look at the macro-level picture. - Bookings - Revenue - COGS - OpEx - EBITDA - Headcount - Cost of ARR Check out my coaching options here!
These Are the Top Billing Solutions in SaaS
In episode #236, I’m sharing the results of the billing / invoicing category from my 5th annual tech stack report. These are solutions being used in SaaS. It’s not a market map. - Invoicing or billing? - Top solutions - Ben’s considerations Download my 5th Annual SaaS Tech Stack Report!
How to Calculate Retention with Both Perpetual Licenses and SaaS
In episode #235, I address a student's question. Yes, there are still software companies with the perpetual/maintenance model. As they transition to SaaS, we must be careful when calculating certain metrics. - The perpetual license / maintenance model - Transition from legacy to SaaS - How to track retention - Keep maintenance separate from subscriptions Have you downloaded my Academy app? Download here for iOS.
These Are the Top Rev Rec Solutions in SaaS
In episode #234, I’m sharing the results of the rev rec category from my 5th annual tech stack report. These are solutions being used in SaaS. It’s not a market map. - What is rev rec? - Why is it important? - The top solutions My LinkedIn Post on Rev Rec Solutions Download my 5th Annual Tech Stack Report
You Need a Forecast Model for a Series A and B Raise
In episode #233, I’m sharing some of what I learned from SaaStr 2024. Today, let’s talk about the projections that you need for a series A and B fundraise. - Historical data - Forecast data - The metrics Join my SaaS metrics course. Grab my SaaS Excel templates.
The Metrics that Matter to Investors
In episode #232, I’m recording this from SaaStr in San Mateo. I watched a great presentation by Christoph Janz of Point Nine Capital. Here’s my recap. You need to know this if you are going to raise capital. - Why clean data and metrics matter - Financial projections - Financial metrics recap - Sales metrics Live SaaS Metrics Course On-demand SaaS Metrics Course
How to Handle Resellers and End Users in Your CRM and Metrics
In episode #231, I’m addressing a very common pain point in our data when we have a partner or reseller channel. If not done right, it really screws up our data. - Reseller defined - CRM configuration - Invoicing - Metrics Join my SaaS community for training, events, and more!
The Big Assumption You’re Overlooking in Your CAC
In episode #230, I’m talking CAC, the ubiquitous SaaS metrics. Seems so simple but there is a big assumption lurking in your spreadsheets that you can’t overlook. - Gross CAC - Unit Cost CAC - CAC feeds these metrics - The big assumption My SaaS metrics course begins September 17th. Click here to learn more!
Can You Pass This Real Go-to-market SaaS Metrics Quiz
In episode #229, I’m testing your knowledge of GTM SaaS metrics. I help a lot of SaaS companies and see a lot of situations. What do you think of this GTM profile? - ACV = $4K - Cost of ARR = $2.00 - CAC Payback = 20 months - What metric would also be helpful? - Take metrics into your operations Level up your SaaS metrics knowledge here!
Should I Invoice Out of My CRM or Accounting Software
In episode #228, I address invoicing. What software should I use? Based on a recent LinkedIn post (below), this is a hotly debated topic. The landscape might be shifting. - Should I invoice out of my CRM? - Should I invoice out of my Accounting software? - Should I use a point solution? - Who owns billings and collections? LinkedIn Post: the next hot space in CFO tech...Billing LinkedInPost: where should I invoice?
Your Sales Team Does NOT Own Billing and Collections
In episode #227, I address billings and collections. An experienced SaaS colleague asked this question, and here are my strong thoughts on it. - Does your CRO own collections? - Does your CFO own collections? - This is how it should work If you need help with collections, check out my app at TryExtend.com.
What is a Good Revenue Churn Rate
In episode 226, I address churn and retention rates. What is good? What is bad? and how do we source these benchmarks? - What is a good customer retention or churn rate? - What metric do we use? - How to correctly benchmark your churn Grab your customer benchmarks at: Benchmarkit.ai Join my SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
What is a Good Customer Churn Rate
In episode #225, I address churn and retention rates. What is good? What is bad? And how we source these benchmarks. - What is a good customer churn rate? - How to correctly benchmark your churn Grab your customer benchmarks at: Benchmarkit.ai Join my SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
Don’t Exit Without Preparing These 4 Key Finance Data Sources
In episode #224, I address a common problem in SaaS companies. Finance data. I see this over and over. You not only need this data to properly scale your business, but you also need for a fundraise or exit. - HRIS - Financial - Bookings - Customer / revenue To learn more: https://www.thesaascfo.com/the-4-key-saas-finance-data-sources/ Join my September cohort for more support: https://www.thesaasacademy.com/the-saas-metrics-foundation-live-cohort-new
The Canary in the Coal Mine Subscription Metric
In episode #223, I address a metric that I rarely see tracked. It’s called Renewal Rate. If you sell annual or multi-year customer contracts, this is a must-have metric. - What is renewal rate? - Renewal rate inputs - Why it’s leading edge? Join Ben's SaaS community: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
What Churn Metric Do I Use in LTV
In episode #222, I address churn, retention, and LTV. Like any metric, LTV can be made very subjective if we use the wrong inputs. We must the correct churn rate and gross margin percentage. - LTV components - What churn do I use? - What is I have a SaaS+ model? Join my SaaS community here for events, templates, and training.
Should I Code Wages and Benefits to COGS
In episode #221, I address expense coding for tradeshows. This is a great question from a SaaS Metrics School podcast listener. - What departments are in COGS? - COGS vs. OpEx - Fully-burdened cost centers
Where Do I Code Tradeshow Expenses
In episode #220, I address expense coding for tradeshows. This is a great question from a SaaS Metrics School podcast listener. - Scenario: we attend tradeshows for lead gen. Multiple staff attend the tradeshow. - Where do we code tradeshow expenses? - Where do we code staff expenses who attend the tradeshow? - Where do we code everyone else?
9 Legal Strategies for a $100M Exit – Tactics 7 to 9
In episode #219, I address preparing for an exit. You must prepare ahead of time for an exit. I hosted guest expert Omeed Tabiei, an attorney for SaaS companies. His tactics were golden. They must be followed so you don’t have a failed exit. - Have strong vendor contracts - Identify potential legal risks - Learn how to navigate complex deals Grab the replay and slides here: https://www.thesaasacademy.com/pl/2148384654 Omeed's LinkedIn: https://www.thesaasacademy.com/pl/2148384654 Omeed's website: https://www.optimistlegal.com/
9 Legal Strategies for a $100M Exit – Tactics 4 to 6
In episode #218, I address preparing for an exit. You must prepare ahead of time for an exit. I hosted guest expert Omeed Tabiei, an attorney for SaaS companies. His tactics were golden. They must be followed so you don’t have a failed exit. - Manage your IP - Keep your corporate governance clean - Have strong customer contracts Grab the replay and slides here: https://www.thesaasacademy.com/pl/2148384654 Omeed's LinkedIn: https://www.thesaasacademy.com/pl/2148384654 Omeed's website: https://www.optimistlegal.com/
9 Legal Strategies for a $100M Exit – Tactics 1 to 3
In episode #217, I address preparing for an exit. You must prepare ahead of time for an exit. I hosted guest expert Omeed Tabiei, an attorney for SaaS companies. His tactics were golden. They must be followed so you don’t have a failed exit. - The right deal structure - Manage your equity - Manage your employees Grab the replay and slides here: https://www.thesaasacademy.com/pl/2148384654 Omeed's LinkedIn: https://www.thesaasacademy.com/pl/2148384654 Omeed's website: https://www.optimistlegal.com/
Ignore Your Accounting Pay the Price Later
In episode #216, I address poor accounting data. This is SO common in early-stage SaaS, even later stage. But it can easily be avoided. - The pillars of your accounting foundation - Revenue categories - Department structure - COGS vs. OpEx - Non-operating - Client example Sample chart of accounts: https://www.thesaascfo.com/sample-chart-of-accounts-saas/
I’m Struggling with Your Bookings Data
In episode #215, I address bookings data from our CRM. This is one of the four key finance data sources. And one that we get wrong. - What is a booking? - How do we use bookings data? - What are the key fields that I need to capture? - Tips Grab my bookings template here: https://www.thesaascfo.com/the-saas-bookings-report/
What to Do When Your Accounts Receivable and Aging Are Out of Control
In episode #214, I address cash flow. Plain and simple. Don’t collect on your open invoices and you’ll soon be out of business. - What is AR? - What is AR aging? - My plan of attack to collect on invoices Check out TryExtend.com to automate your cash collections. Better yet, set up a quick demo call with here: https://book.thesaascfo.com/tryextend if you use QBO or Xero.
How Late is Late for a Late Payment?
In episode #213, I address a student question from my SaaS metrics community. As a CFO, this question is near and dear to my finance heart. - What is considered late? - Does invoice size amount matter? - My maximum late grace period - Automating your cash collections Put your cash collections on autopilot at TryExtend.com
Not All CARR is Created Equally
In episode #212, I address Contracted Annual Recurring Revenue (CARR). This can get really tricky when everyone is defining ARR differently. And CARR is often used in SaaS valuation discussions. - What is CARR? - SaaS valuations - Not created equally - Attach retention to CARR CARR blog post: https://www.thesaascfo.com/committed-monthly-recurring-revenue/
Your Accounting Team Needs a Close Calendar Checklist
In episode #211, I address your accounting foundation. Like it or not, accounting data is so important and feeds the SaaS finance process. - SaaS accounting foundation - SaaSify your chart of accounts - Clean close process Close checklist: https://www.thesaascfo.com/downloads/monthly-close-calendar/
Parent Child Relationships Can Cause a Big Metrics Mess
In episode #210, I address the parent-child relationship—and I’m not talking about the relationship with your teenager. If not done right, it can wreak havoc on your financial analysis and metrics. - What is the parent-child relationship? - Tracking retention at each level - Create a cross-walk
Founder / Investor Fit is Critical for Fundraising Success
In episode #209, I address fundraising tips and tricks. This tip is one that is always mentioned when I interview SaaS founders about their fundraising experience. - What is founder / investor fit - Vet your investors - Be courteous
Is LTV to CAC Dead as a Metric?
In episode #208, I address social media posts that attack LTV to CAC. Don’t believe the blanket statements that you read about SaaS metrics. - What is LTV to CAC? - When does Ben use LTV to CAC? CAC Class: https://www.thesaasacademy.com/pl/2148384654
How Do We Track Retention When We Offer Multi-year Contracts
In episode #207, I address retention in a multi-year contract environment. Should we use only classic retention analysis? - The 3 retention metrics - When to apply the renewal rate? - What is renewal rate?
I Rarely See This Metric Tracked in SaaS Companies
In episode #206, I address a non-financial metric that I love. That is NPS or CSAT. But you see a lot of folks who would rather pass on NPS. - Any feedback is good feedback - NPS - Try my NPS tool Join my SaaS community: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
How to Tackle Your Retention Problem
In episode #205, I address the must-have retention metrics and how to zero in on retention problems. - The 3 retention metrics - Where’s my retention problem? - Cohort vs. aggregate retention Grab my retention templates: https://www.thesaasacademy.com/pl/2148292708
Do Your VC’s Not Care Anymore?
In episode #204, I address a post by SaaStr about VC’s checking out on current investments. What now? - Set your own financial roadmap - Forecasting - 5 Pillar SaaS Metrics Framework Grab my framework here: https://www.thesaasacademy.com/pl/2148255133
Improving Your DSO and Cash Flow
In episode #203, I address invoicing, cash collections, and cash flow. Cash flow starts with timely and accurate invoicing. - Timely and accurate invoicing - Days Sales Outstanding - Cash collections Grab my DSO guide here: https://www.thesaascfo.com/downloads/dso-guide/ Need help with cash collections automation, book time with me here: https://book.thesaascfo.com/tryextend
Do I Really Have to Code All Expenses to a Department?
In episode #202, I address a reader question about coding expenses. They attended my CAC webinar and had a great question about how far you go with expense coding. - Coding expenses to the department level - Allocating invoices to multiple departments Catch my CAC training replay and templates: https://www.thesaasacademy.com/pl/2148384654 Some great SaaS events coming up: https://www.thesaascfo.com/saas-events/
How to Segment Your CAC
In episode #201, I address the foundation of CAC and segmentation. It takes a lot of good expense detail to get fancy with our CAC calculations. - New vs. existing allocation - CAC segmentation CAC webinar on May 29th: https://www.thesaasacademy.com/pl/2148321309
The Ultimate SaaS Metrics Checklist for Your Business
Episode 200 – The Ultimate SaaS Metrics Checklist for Your Business In episode #200, it’s fitting for episode 200 that I share my 5 Pillar SaaS Metrics Framework. It acs as your guide and roadmap to calculating the correct SaaS metrics for the right stage of your business. - Pillar 1 – growth - Pillar 2 – retention - Pillar 3 – margins - Pillar 4 – financial profile - Pillar 5 - efficiency Grab my framework here: https://www.thesaasacademy.com/pl/2148255133 Join my SaaS metrics training here: https://www.thesaasacademy.com/SMF-live-just-the-facts
My ARR when Switching from Long-term Contracts to Consumption Model
In episode #199, I address the tricky question of what is ARR. There are many revenue streams in SaaS and we have to be careful how add up our ARR. - SaaS revenue streams - What is ARR? - Subscription to consumption SaaS metrics course begins July 9th: https://www.thesaasacademy.com/SMF-live-just-the-facts
You Are Less Than 2M ARR and Want to Exit
In episode #198, I address what you need if you are early-stage and want to exit. I just gave a coaching call on this to someone prepping a smaller SaaS company for sale. - Accounting - SaaS P&L - MRR schedule SaaS metrics course launches July 9th SaaS CFO templates course
Your MRR Schedule is Worth its Weight in Gold
Episode 197 – Your MRR Schedule is Worth its Weight in Gold In episode #197, I address due diligence and your MRR schedule. Your MRR schedule will ALWAYS be requested in due diligence. - What is an MRR schedule? - How do you create an MRR schedule? - MRR schedules are gold - SaaS metrics course SaaS Metrics course launches July 9th SaaS CFO templates course
The Foundation of CAC Part 4
In episode #196, I address the foundation of CAC in this four-part series. Today, let’s talk PLG and SLG. And segmenting your CAC. - SLG and PLG impact on CAC - Don’t forget to segment your CAC The foundation of CAC blog post.
The Foundation of CAC Part 3
In episode #195, I address the foundation of CAC in this four-part series. Today, about the metrics that use CAC as an input. And what’s your prize? - CAC feeds these metrics - What’s your prize? Very important to define Learn more about CAC here!
The Foundation of CAC Part 2
In episode #194, I address the foundation of CAC in this four-part series. Today, let’s talk data sources. Where do we source CAC data? - SaaS P&L - Bookings data or your MRR schedule Foundation of CAC blog post.
The Foundation of CAC Part 1
In episode #193, I address the foundation of CAC in this four-part series. Today, let’s define CAC. It’s not as obvious as it seems. - Begins with your general ledger and your SaaS P&L - Gross CAC, customer acquisition cost Blog post on CAC: https://www.thesaascfo.com/the-foundation-of-customer-acquisition-costs-cac/
What SaaS Metrics Are Relevant When Passing $10M ARR?
In episode #192, I address the relevant SaaS metrics when hitting the big $10M ARR milestone. If you are a founder who is still far away from 10M, it’s good to understand what you’ll need at that point. - Do SaaS metrics matter? - What financial metrics do I need? - The 4 key finance data sources Grab my 5 Pillar Framework here: https://www.thesaasacademy.com/pl/2148255133
What Metrics and Data Do Acquirors Want to See ASAP?
In episode #191, I address the data that is worth its weight in gold. You will always be asked for this data when buyers are evaluating your SaaS business. - The golden data - Where do you source this data? Grab my resource to create your MRR schedule here: https://www.thesaasacademy.com/pl/2148292708