Tons of metrics can be calculated for any SaaS business. In order to determine how your start-up is performing in a business environment, it's essential to calculate the SaaS Magic Number and various other sales efficiency metrics. Although the metric is overlooked in the SaaS startup community, it’s no…
metrics
What does the Rule of 40 tell about a SaaS company?
The Rule of 40 emerged a few years back at a time when many SaaS companies started to go public. Unlike traditional public on-premise incumbents, SaaS companies do not repay instantly the customer acquisition costs (CAC) and require at least 6-12 months of payback period to recoup it. Capital markets…
MRR (monthly recurring revenue): the ultimate guide for SaaS
After writing this post, I found out that it has gotten a bit out of proportion, so below is a short table of contents:Sections:IntroMetric vs Reporting (GAAP, IFRS)Definition: what is MRR (monthly recurring revenue)?Tracking MRR and why its important?How to calculate MRR and its growth…