SaaS Quick Ratio
A SaaS metric commonly overlooked is the Quick Ratio, which measures the growth efficiency in a company. Simply, it lets you know how well your SaaS company can grow its... Read More
The Famous 3:1 LTV CAC Ratio… Is it Too Low?
The standard benchmark for SaaS companies is to achieve 3:1 (3 to 1) LTV to CAC ratio. This post looks at the ratio from a bootstrapped SaaS company’s perspective, and... Read More
Ways to Increase Monthly Recurring Revenue (MRR)
As outlined in a previous post, MRR is the amount of recurring revenue you generate in a given period. MRR does not include any one-off charges your clients pay you.... Read More
COGS in SaaS
This post outlines what is included in the Cost of Goods Sold (COGS) calculation, specifically for SaaS or software companies. There has been a lot of confusion surrounding COGS for... Read More
Don’t Sleep on Expansion Revenue
A metric often overlooked, which is extremely important to the health and growth of a SaaS business, is expansion revenue. Most SaaS folks are fixated on the basic top-line metrics... Read More
SaaS Metrics for Dummies
I’m often shocked as to how many SaaS founders are unable to answer simple questions regarding the health of their business. If you’re a SaaS founder or operator and don’t... Read More
6 Ways to Reduce Churn in Saas
Churn is arguably the single most important metric for the longevity, growth, and profitability of a Saas business. Starting from the beginning, churn isn’t really something you think about in... Read More