Return to Chaotic Flow home >>>

SaaS Metrics Guide to SaaS Financial Performance

I’ve wrapped up the highlights of my SaaS metrics series into a tidy SaaS Metrics Guide to SaaS Financial Performance. Like the original SaaS metrics series, this reference guide presents simple rules-of-thumb and graphic visualizations that capture the dynamic relationships between core SaaS metrics and SaaS financial performance.

It is NOT a comprehensive overview of SaaS metrics, but a deep dive into the most critical SaaS metrics with the goal of fostering intuition and deeper understanding of SaaS financial performance, including charts, formulas, definitions, sample calculations, and hyperlinks back to the full SaaS Metrics Rules-of-Thumb posts. Feel free to pass it along. Cheers! JY.

saas metrics

Click the image to download the
SaaS Metrics Guide to SaaS Financial Performance (PDF format)

Original SaaS Metrics Rules-of-Thumb Posts

Comment on Facebook!

31 More Comments at Chaotic Flow:

  1. Firas Raouf, 29. September 2010, 11:49

    Joel
    You nailed it! Yet again… Technically deep and insightful. You are doing the SaaS community a huge favor. I hope you don’t mind me referencing you in my latest post http: http://bit.ly/cyUH6W

    Check out OpenView Labs website labs.openviewpartners.com. Would love to get your feedback. Think of it as a mega blog for all that an early stage software company should be thinking about.

     
  2. Scott Maxwell, 22. October 2010, 14:38

    Joel, this is really nicely done! Thanks for putting it all together in one place!
    Scott

     
  3. Twitted by MikeOliverAZ (Pingback), 1. November 2010, 17:31
     

    […] This post was Twitted by MikeOliverAZ […]

     
  4. 12 Helpful Tips: #7 Using SaaS Metrics | Smart SaaS (Pingback), 26. January 2011, 11:24
     

    […] York’s Chaotic Flow Blog is always really useful and he did a fantastic post on SaaS Metrics and Economics.  Joel provides a very scientific approach and a lot of details for those who are really […]

     
  5. Greg Robertson, 17. March 2011, 17:52

    Joel regarding your Churn Rate formula. Is C your total number of customers over all-time or for the period you are measuring (delta t)?

    Example: My software service is billed monthly. I started selling subscriptions in Jan 10. I want to calculate the Churn Rate from Oct 10 to Feb 11. Does C= # of customer (Jan 10 to Feb 11) or (Oct 10 to Feb 11)?

    Apologize if I’m not reading this correctly.

     
  6. Quora (Trackback), 25. August 2011, 16:44
     

    What is considered a “good” number when tracking monthly churn for a SaaS business in MRR$ lost?…

    Peter’s comment is dead on…depends on the business. That said, 3.5% sounds strange to me….if that is 3.5%/month then it is > 50%/year (1.51=1.035^12)…which is pretty bad by most standards…might expect it from a consumer site or an event driven…

     
  7. christina, 14. October 2011, 16:03

    Joel,

    Do you have any thoughts on best ways to project churn on a monthly/quarterly/annual basis?

    Cheers,
    Christina

     
  8. Joel York, 20. October 2011, 14:46

    Hi Christina,

    The only way I know is to use historical numbers…or benchmarks for similar services if you don’t have historical.

    If you don’t think your customer base is uniform, you will need to break it into cohorts based on whatever criteria differentiates your customers, e.g., date of signup, type of subscription plan, demographics, length of service, etc.

    Joel

     
  9. Quora (Trackback), 30. March 2012, 5:58
     

    What is the best way for a SaaS company to deal with long sales cycles?…

    As long as the touch points in the long cycle time are managed effectively and the incentive structure recognizes the inherent nature of business this should not be a problem. A good thumb rule is to look at what is your average cost of sale compared t…

     
  10.  

    […] flow both which can sink a company.  Joel York provides a good reference to the most critical SaaS metrics.  David Skok provides an excellent guide to SaaS financial […]

     
  11.  

    […] Link 3: SaaS Metric Cheat Sheet […]

     
  12. isabelle, 27. November 2012, 3:33

    Amazing… big thanks for sharing these metrics.

     
  13. SaaS Economics « Best Practices for Your Tech Startup (Pingback), 20. December 2012, 20:38
     

    […] start with, let’s define some key terms (see here for more […]

     
  14.  

    […] York has compiled the most important SaaS metrics on one sheet of paper (if you print double-sided). If you follow that link, you’ll also find York’s prior posts, […]

     
  15.  

    […] “SaaS Metrics Guide to Saas Financial Performance” […]

     
  16.  

    […] York’s “SaaS Metrics Guide” and corresponding SaaS Metrics Rules of […]

     
  17.  

    […] York’s “SaaS Metrics Guide” and corresponding SaaS Metrics Rules of […]

     
  18.  

    […] are witnessing a dramatic change in the way SaaS businesses are managed. While SaaS financial metrics, such as recurring revenue, acquisition cost, service cost, churn, growth and lifetime value have […]

     
  19.  

    […] metrics challenge of previous years where all we had to do was master a relatively short list of SaaS financial metrics, the SaaS customer success metrics challenge is truly daunting–a bona fide big data problem. […]

     
  20.  

    […] metrics challenge of previous years where all we had to do was master a relatively short list of SaaS financial metrics, the SaaS customer success metrics challenge is truly daunting–a bona fide big data problem. […]

     
  21.  

    […] York’s “SaaS Metrics Guide” and corresponding SaaS Metrics Rules of […]

     
  22. The SaaS Metrics Maturity Model | Bluenose (Pingback), 20. May 2014, 11:24
     

    […] occurs when a SaaS business achieves a stable SaaS business model that allows management to monitor the key SaaS financial metrics, including recurring revenue, customer acquisition cost, churn, growth and cost of service. […]

     
  23.  

    […] York has compiled the most important SAAS metrics on one sheet of paper (if you print double-sided). Joel also really nicely points to his prior posts that explain the […]

     
  24. Confluence: Administration (Trackback), 15. July 2014, 17:29
     

    Food for Thought….SaaS related blogs and readings…

    Click through some of these links to learn about S…

     
  25.  

    […] PDF File Name: Saas metrics guide to saas financial performance Source: chaotic-flow.com » DOWNLOAD « […]

     
  26.  

    […] York’s “SaaS Metrics Guide” and corresponding SaaS Metrics Rules of […]

     
  27. Confluence: People Operations (Trackback), 18. January 2017, 18:24
     

    Food for Thought….SaaS related blogs and readings

    Click through some of these links to learn about S

     
  28.  

    […] Joel Yorks’ blog. Fast lane: download at least his SaaS cheat […]

     

Dont use Facebook? Write a comment anyway!