Consensus’ Post

If you're valuing SaaS companies like traditional ones, think again. You're probably missing key metrics. Here are the essentials you should focus on: - ARR (Annual Recurring Revenue): The lifeblood of SaaS, showing predictable income. - Churn Rate: High churn can sink future revenues. - Customer Acquisition Cost (CAC): Knowing this helps balance spending and growth. - Lifetime Value (LTV): This tells you how much revenue a customer will bring over time. Traditional businesses don't operate on these dynamics. SaaS companies scale fast and pivot quickly. By ignoring these metrics, you risk undervaluing potential gems. So, update your valuation toolkit. Agree or disagree? #BrainDumps | BrainDump #107

Great Insight

Expect your prospects to say "we're comparing your SaaS to other alternatives" Don't chase & start offering incentives at that point (it'll put you in a weak position) Instead, advise them what to ask your competitors (so that they realize you have the best solution).

What makes SaaS businesses different? Ah. They are beautiful. Recurring revenue is beautiful. 2 ways to make more money: • Reduce churn. • Get more customers. I help you with both.

If you're valuing SaaS companies like traditional ones, think again. You're probably missing key metrics. Here are the essentials you should focus on: - ARR (Annual Recurring Revenue): The lifeblood of SaaS, showing predictable income. - Churn Rate: High churn can sink future revenues. - Customer Acquisition Cost (CAC): Knowing this helps balance spending and growth. - Lifetime Value (LTV): This tells you how much revenue a customer will bring over time.

ZoomInfo report Q2 results next week. If there's one metric I'll be looking for it's Net Revenue Retention. The trend has not been good. The SaaS business model is based on the premise that the customer contracts are recurring. It's why Annual Recurring Revenue is a key metric. But when NRR drops below 100%, it means that revenue from existing customers is decreasing. It becomes very challenging to have CAC Payback of 40+ months if you can't retain customers. Any predictions here? Do we see the NRR cross 100% again? Do they stop reporting on the metric? Do we see a continuing decline?

How are you prioritizing your SaaS metrics? When you want to not just look at growing but strategize your growth, I feel it's utterly important to keep an eye on your metrics. So, here are 5 of my top metrics that I follow like a saint: First, the Customer Lifetime Value

What are the most important SaaS metrics to track📊? Here are some of the 17 metrics we consider important: 👍🏻Monthly Recurring Revenue (MRR) & Annual Recurring Revenue (ARR) 👍🏻Contracted Monthly Recurring Revenue (CMRR) 👍🏻Average Revenue Per Account (ARPA) 👍🏻Annual Contract Value (ACV) 👍🏻Customer Acquisition Cost (CAC) 👍🏻Payback Period 👍🏻Customer Lifetime Value (CLV or LTV) 👍🏻LTV: CAC Ratio Here is our article covering them all👇🏻 https://lnkd.in/d_6vbpq7 Do you agree? Any other you consider essential🚗? We also have a webinar covering the topic. See reg link in comment🤗

Are you prepared for the unique financial challenges of running a SaaS business? From managing complex sales tax rules to tracking revenue and customer acquisition costs, the demands can feel overwhelming. LBMC W Squared understands the ins and outs of SaaS accounting. Our team will help you make sense of key metrics like CAC, LTV, and churn, giving you the insights needed to grow with confidence. Want to learn more? Let's chat. #SaaSAccounting #Growth #SaaS

Are you prepared for the unique financial challenges of running a SaaS business? From managing complex sales tax rules to tracking revenue and customer acquisition costs, the demands can feel overwhelming. LBMC W Squared understands the ins and outs of SaaS accounting. Our team will help you make sense of key metrics like CAC, LTV, and churn, giving you the insights needed to grow with confidence. Want to learn more? Let's chat. #SaaSAccounting #Growth #SaaS