SaaS Metrics
Overview
SaaS metrics describe recurring revenue health and efficiency. Consistent definitions are essential because small methodology differences create large narrative differences.
When to Use
- Subscription business reporting
- Board and investor SaaS dashboards
- Growth efficiency diagnosis
- Pricing and retention analysis support
Core Metrics
- MRR / ARR and new / expansion / churn bridges
- Logo and revenue churn
- Net revenue retention (NRR)
- CAC, LTV, payback, magic number, burn multiple
- Rule of 40 (where relevant)
Principles
- Definitions must be written and stable
- Bridges explain movement better than snapshots
- Efficiency metrics matter as growth slows
- Don’t mix recognized revenue and booking metrics carelessly
Verification
- ARR/MRR definitions are documented
- Churn and NRR methodology is consistent
- Efficiency metrics use matching cost bases