SaaS Metrics 2.

0
For companies that book primarily monthly contracts Bookings Metrics
600
MRR Bookings
Bookings Jan Feb Mar Apr May Jun 500
35
Bookings $,000's (new custs) $ 121 $ 161 $ 123 $ 169 $ 157 $ 180 Value of all closed contracts during the month (with varying durations)
400
Average Deal Size $'s $ 3,025 $ 3,833 $ 2,849 $ 3,674 $ 3,263 $ 3,458 Average size of deal for full duration 30
Average Contract Length Average duration of contract signed by the new customers 300
Average Months paid upfront 5.5 7.0 5.0 6.5 5.8 6.2 Average number of months paid upfront by new customers 25
200
ARPA (Average MRR) for new custs $ 550 $ 548 $ 570 $ 565 $ 563 $ 558 ARPA = Avg Revenue Per Acct - Avg MRR across the new customers
20
ARPA - across the installed base $ 514 $ 521 $ 530 $ 538 $ 552 $ 562 Average MRR per customer across the installed base
100
15
MRR Jan Feb Mar Apr May Jun 0
Jan Feb Mar Apr May Jun
New MRR $ 22.0 $ 23.0 $ 24.5 $ 26.0 $ 27.0 $ 29.0 New MRR added from new customers signed in the month 10
Churned MRR $ (8.4) $ (11.2) $ (9.0) $ (8.9) $ (8.9) $ (8.8) Lost MRR from customers who churned in the month Bookings $,000's
5
Expansion MRR $ 2.0 $ 2.5 $ 2.1 $ 1.3 $ 7.0 $ 3.4 Expansion MRR from the installed base of existing customers (from new custs)
Net New MRR $ 15.6 $ 14.3 $ 17.6 $ 18.4 $ 25.1 $ 23.6
0 200
Jan Feb Mar Apr May Jun
150
Starting MRR $ 400.0 $ 415.6 $ 429.9 $ 447.5 $ 465.9 $ 491.0 -5
100
Ending MRR $ 415.6 $ 429.9 $ 447.5 $ 465.9 $ 491.0 $ 514.6
ARR (Annualized Run Rate) $ 4,987 $ 5,158 $ 5,370 $ 5,591 $ 5,892 $ 6,175 This is simply MRR x 12 -10 50
0
-15 Jan Feb Mar Apr May Jun
Churn Metrics Jan Feb Mar Apr May Jun
Total # of Customers 808 825 845 866 890 916 0.025
# of new Customers 40 42 43 46 48 52 Churn and Expansion as % of MRR
# of churned Customers (24) (25) (23) (25) (24) (26) 0.035
0.02
Net New Customers 16 17 20 21 24 26 # of new Customers - # of churned Customers
0.03

% Customer Churn 3.0% 3.1% 2.8% 3.0% 2.8% 2.9% # of churned Customers / Total # of Customers (from last month) 0.025 0.015
% MRR Churn 2.1% 2.7% 2.1% 2.0% 1.9% 1.8% Churned MRR / Last month's Ending MRR % Customer Churn
% MRR Expansion 0.5% 0.6% 0.5% 0.3% 1.5% 0.7% Expansion MRR / Last month's Ending MRR 0.02 % MRR Churn
% MRR Expansion
% Net MRR Churn 1.6% 2.1% 1.6% 1.7% 0.4% 1.1% (Churned MRR - Expansion MRR)/Last months Ending MRR 0.01
0.015

Customer Engagement Score 121 120 125 126 130 135 The average Customer Engagement Score across the customer base 0.01
0.005
Net Promoter Score 28 27 29 32 33 35
0.005

Unit Economics (new customers) Jan Feb Mar Apr May Jun 0 0
LTV $ 21,738 $ 16,834 $ 22,519 $ 23,457 $ 24,572 $ 25,716 ARPA * Gross Margin % / %MRR Churn Rate Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun

CAC $ 8,750 $ 8,571 $ 8,605 $ 8,261 $ 8,125 $ 7,692 Adjusted Sales & Marketing expense / # of new Customers
LTV to CAC Ratio 2.5 2.0 2.6 2.8 3.0 3.3 LTV/CAC 4500 8
Months to Recover CAC 19 19 18 18 17 17 CAC/(ARPA * GM%) Avg MRR
4000 7
575
3500 6
570
3000
565 5
Summary Financial Metrics $000's Jan Feb Mar Apr May Jun 2500
560 4
Billings (what's invoiced this month) $ 505 $ 515 $ 520 $ 490 $ 540 $ 560 Custs may be billed in advance of when revenue can be recognized 2000
555
Revenue $ 416 $ 430 $ 447 $ 466 $ 491 $ 515 Revenue is typically recognized monthly, so may vary from Billings 3
1500 550
Cost of Goods Solds - COGS $ 71 $ 73 $ 76 $ 79 $ 83 $ 87
2
Gross Margin $ 345 $ 357 $ 371 $ 387 $ 408 $ 427 1000 545
Gross Margin % 83% 83% 83% 83% 83% 83% 500 1
540

0 535 0
Total Expenses $ 640 $ 650 $ 660 $ 670 $ 680 $ 690 Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun

Sales & Marketing $ 350 $ 360 $ 370 $ 380 $ 390 $ 400

Research & Development $ 180 $ 180 $ 180 $ 180 $ 180 $ 180 Funnel Metrics (your key funnel stages will likely vary)
General & Administrative $ 110 $ 110 $ 110 $ 110 $ 110 $ 110
5400

EBITDA $ (295) $ (293) $ (289) $ (283) $ (272) $ (263) Based on GAAP recognized revenue
5200
Billings-based operating profit/loss $ (221) $ (223) $ (228) $ (263) $ (232) $ (225) Given that cash will be collected based on Billings, this is a useful way
to judge how the business is doing on cash basis
5000

Cash & Deferred Revenue Jan Feb Mar Apr May Jun
Change in Cash 4800

Ending Cash 0.054

Deferred Revenue Tracks what has been billed, but can't yet be recognized as revenue 4600

0.052
4400

Funnel Metrics Jan Feb Mar Apr May Jun 0.05

Vistors to Web Site 4,700 5,178 4,574 4,923 5,000 5,170 4200
Jan Feb Mar Apr May Jun
Conversion from Visitors to Trials 5.0% 4.5% 4.7% 5.2% 4.8% 5.3% 0.048

Trials in progress 235 233 215 256 240 274

300 0.046
Conversion from Trials to Purchase 17% 18% 20% 18% 20% 19%
0.044
250

Sales Metrics Jan Feb Mar Apr May Jun 0.042

No of FTE Sales reps 6 6.5 7 7.5 8 8.5 FTE = Full Time Equivalent (equivalent # of fully productive reps) 200

Quota per sales rep $ 4.2 $ 4.2 $ 4.2 $ 4.2 $ 4.2 $ 4.2 MRR value of new customers signed 0.04
Jan Feb Mar Apr May Jun
Forecasted Sales Capacity $ 25.0 $ 27.1 $ 29.2 $ 31.3 $ 33.3 $ 35.4 # of FTE reps * quota (should translate into New MRR Bookings) 150
Coverage ratio for plan 1.2 1.2 1.2 1.2 1.2 1.2 Forcasted Sales Capacity / Bookings plan
0.205
100
Productivity per FTE sales rep $ 3.7 $ 3.5 $ 3.5 $ 3.5 $ 3.4 $ 3.4 MRR value of new customers signed 0.2

50 0.195

0.19
0
Jan Feb Mar Apr May Jun 0.185

0.18
60 0.175

0.17
50
0.165

40 0.16

0.155
Jan Feb Mar Apr May Jun
30

20

10

0
Jan Feb Mar Apr May Jun

9 3.7

8 3.65

7 3.6

3.55
6
3.5
5
3.45
4
3.4
3
3.35
2 3.3

1 3.25

0 3.2
Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun

Unit Economics

LTV and CAC

30000

25000

20000
LTV
CAC
15000

10000

5000

0
Jan Feb Mar Apr May Jun

4 19.5

3.5 19

18.5
3
18
2.5
17.5
2
17
1.5
16.5
1 16
0.5 15.5

0 15
Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun

Customer Engagement and Customer Happiness (both are churn predictors)

140 40

35
135
30
130
25

125 20

15
120
10
115
5

110 0
Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun
 Bookings Metrics

600
MRR Bookings
35
500
30

25
400
20

15
300
10

5 200

0
Jan Feb Mar Apr May Jun
-5 100

-10

0
-15 Jan Feb Mar Apr May Jun

Churn and Expansion as % of MRR Bookings $,000's

0.035
(from new custs)
200
0.03
180

0.025 160
% Customer Churn 140
0.02 % MRR Churn 120
% MRR Expansion
100
0.015
80
0.01 60
40
0.005
20
0 0
Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun
 0.02 % MRR Churn 120
% MRR Expansion
100
0.015
80
0.01 60
40
0.005
20
0 0
Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun

4500 575 8

4000 570 7

3500 6
565
3000
560 5
2500
555 4
2000
550 3
1500
545 2
1000

500 540 1

0 535 0
Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun

Funnel Metrics (your key funnel stages will likely vary)

5400

5200

5000

4800

0.054
4600

0.052
4400
0.05
4200
Jan Feb Mar Apr May Jun
0.048
 0.054
4600

0.052
4400
0.05
4200
Jan Feb Mar Apr May Jun
0.048

300 0.046

0.044
250

0.042
200
0.04
Jan Feb Mar Apr May Jun
150

0.205
100
0.2

50 0.195

0.19
0
Jan Feb Mar Apr May Jun 0.185

0.18
60 0.175

0.17
50
0.165

40 0.16

0.155
Jan Feb Mar Apr May Jun
30

20

10

0
Jan Feb Mar Apr May Jun
10

0
Jan Feb Mar Apr May Jun

9 40 45

8 35 44
7
30
43
6
25
5 42
20
4 41
15
3
40
10
2

5 39
1

0 0 38
Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun

Unit Economics

LTV and CAC

30000

25000

20000
LTV
CAC
15000

10000

5000

0
Jan Feb Mar Apr May Jun
10000

5000

0
Jan Feb Mar Apr May Jun

4 19.5

3.5 19

18.5
3
18
2.5
17.5
2
17
1.5
16.5
1 16
0.5 15.5

0 15
Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun

Customer Engagement and Customer Happiness (both are churn predictors)

140 40

35
135
30
130
25

125 20

15
120
10
115
5

110 0
Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun
SaaS Metrics 2.0 Scroll right to see the dashboard ---->
For companies that book annual contracts Bookings Metrics
7000
ACV Bookings
6000
Bookings Jan Feb Mar Apr May Jun 400
Bookings $,000's (new custs) $ 264 $ 276 $ 294 $ 312 $ 324 $ 348 Value of all closed contracts during the month (annualized) 5000
Average ACV (new contracts) $ 6,600 $ 6,571 $ 6,837 $ 6,783 $ 6,750 $ 6,692 Average ACV for new customers 4000
Average Contract Term 1.3 1.4 1.4 1.5 1.4 1.6 Average duration of contract signed by the new customers 300
Average Months Paid Upfront 5.5 7.0 5.0 6.5 5.8 6.2 Average number of months paid upfront by new customers 3000

ARPA - Avg MRR (for new Custs) $ 550 $ 548 $ 570 $ 565 $ 563 $ 558 Average Revenue per Account - Avg MRR (for the new customers) 2000
ARPA - across installed base $ 514 $ 521 $ 530 $ 538 $ 552 $ 562 Average MRR across the installed base 200
1000

ACV Jan Feb Mar Apr May Jun 0

100 Jan Feb Mar Apr May Jun
New ACV $ 264.0 $ 276.0 $ 294.0 $ 312.0 $ 324.0 $ 348.0 New ACV added from new customers signed in the month
Churned ACV $ (100.8) $ (134.7) $ (108.3) $ (107.4) $ (106.2) $ (106.1) Lost ACV from customers who churned in the month Bookings $,000's
Expansion ACV $ 24.0 $ 29.9 $ 25.8 $ 16.1 $ 83.9 $ 41.2 Expansion ACV from the installed base of existing customers 0 (from new custs)
Jan Feb Mar Apr May Jun
Net New ACV $ 187.2 $ 171.3 $ 211.5 $ 220.7 $ 301.6 $ 283.2 400
300
Starting ARR $ 4,800 $ 4,987 $ 5,158 $ 5,370 $ 5,591 $ 5,892 -100
200
Ending ARR $ 4,987 $ 5,158 $ 5,370 $ 5,591 $ 5,892 $ 6,175 100
0
-200 Jan Feb Mar Apr May Jun
Churn Metrics Jan Feb Mar Apr May Jun
Total # of Customers 808 825 845 866 890 916 0.025
# of new Customers 40 42 43 46 48 52 Churn and Expansion as % of ACV
# of churned Customers (24) (25) (23) (25) (24) (26) 0.035
Net New Customers 16 17 20 21 24 26 # of new Customers - # of churned Customers 0.02
0.03

% Customer Churn 3.0% 3.1% 2.8% 3.0% 2.8% 2.9% # of churned Customers / Total # of Customers (from last month)
0.025 0.015
% ACV Churn 2.1% 2.7% 2.1% 2.0% 1.9% 1.8% Churned MRR / Last month's Ending MRR
% Customer Churn
% ACV Expansion 0.5% 0.6% 0.5% 0.3% 1.5% 0.7% Expansion MRR / Last month's Ending MRR 0.02 % ACV Churn
% Net ACV Churn 1.6% 2.1% 1.6% 1.7% 0.4% 1.1% (Churned MRR - Expansion MRR)/Last months Ending MRR % ACV Expansion
0.01
0.015
Renewal rate (# of Custs) Slightly different to Churn, as it measures Renewal against contracts
Renewal rate (ACV $'s) that are up for renewal. (Churn is against the whole customer base) 0.01
0.005
0.005
Customer Engagement Score 121 120 125 126 130 135 The average Customer Engagement Score across the customer base
Net Promoter Score 28 27 29 32 33 35 0 0
Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun

Unit Economics (new customers) Jan Feb Mar Apr May Jun
LTV $ 21,738 $ 16,834 $ 22,519 $ 23,457 $ 24,572 $ 25,716 ARPA * Gross Margin % / %MRR Churn Rate 575 8
CAC $ 8,750 $ 8,571 $ 8,605 $ 8,261 $ 8,125 $ 7,692 Adjusted Sales & Marketing expense / # of new Customers 7
570
LTV to CAC Ratio 2.5 2.0 2.6 2.8 3.0 3.3 LTV/CAC
Months to Recover CAC 19 19 18 18 17 17 CAC/(ARPA * GM%) 565 6

560 5

555 4

Summary Financial Metrics $000's Jan Feb Mar Apr May Jun 550 3
Billings (what's invoiced this month) $ 505 $ 515 $ 520 $ 490 $ 540 $ 560 Custs may be billed in advance of when revenue can be recognized
545 2
Revenue $ 4,987 $ 5,158 $ 5,370 $ 5,591 $ 5,892 $ 6,175 Revenue is typically recognized monthly, so may vary from Billings
Cost of Goods Solds - COGS $ 848 $ 877 $ 913 $ 950 $ 1,002 $ 1,050 540 1
Gross Margin $ 4,139 $ 4,282 $ 4,457 $ 4,640 $ 4,891 $ 5,126 0
535
Gross Margin % 83% 83% 83% 83% 83% 83% Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun

Total Expenses $ 640 $ 650 $ 660 $ 670 $ 680 $ 690 Funnel Metrics (your key funnel stages will likely vary)
Sales & Marketing $ 350 $ 360 $ 370 $ 380 $ 390 $ 400
6000
Research & Development $ 180 $ 180 $ 180 $ 180 $ 180 $ 180
General & Administrative $ 110 $ 110 $ 110 $ 110 $ 110 $ 110
5000

EBITDA $ 3,499 $ 3,632 $ 3,797 $ 3,970 $ 4,211 $ 4,436 Based on GAAP recognized revenue
Billings-based operating profit/loss $ (221) $ (223) $ (228) $ (263) $ (232) $ (225) Given that cash will be collected based on Billings, this is a useful way 4000

to judge how the business is doing on cash basis

3000

Cash & Deferred Revenue Jan Feb Mar Apr May Jun 0.025
Change in Cash 2000

Ending Cash
Deferred Revenue Tracks what has been billed, but can't yet be recognized as revenue 1000 0.02

0
Jan Feb Mar Apr May Jun 0.015
Funnel Metrics Jan Feb Mar Apr May Jun
Raw Leads / Enquiries 3,611 3,429 5,200 5,357 4,684 4,400
100
Conversion Raw Leads to MQLs 1.8% 2.1% 1.5% 1.4% 1.9% 2.0% 0.01
Opportunities 65 72 78 75 89 88 90
Conversion: Oppties to Win 62% 58% 55% 61% 54% 59% 80
0.005
Win/Losss ratio 75% 82% 65% 79% 85% 78%
70

60
Sales Metrics Jan Feb Mar Apr May Jun 0
Jan Feb Mar Apr May Jun
No of FTE Sales reps 6 6.5 7 7.5 8 8.5 FTE = Full Time Equivalent (equivalent # of fully productive reps) 50
Quota per sales rep $ 4.2 $ 4.2 $ 4.2 $ 4.2 $ 4.2 $ 4.2 MRR value of new customers signed 40
0.64
Sales Capacity $ 25.0 $ 27.1 $ 29.2 $ 31.3 $ 33.3 $ 35.4 # of FTE reps * quota (should translate into New MRR Bookings)
30
Coverage ratio for plan 1.2 1.2 1.2 1.2 1.2 1.2 Forcasted Sales Capacity / Bookings plan
0.62
20

Productivity per FTE sales rep $ 44.0 $ 42.5 $ 42.0 $ 41.6 $ 40.5 $ 40.9 MRR value of new customers signed 10 0.6
0
Jan Feb Mar Apr May Jun
0.58

60 0.56

0.54
50

0.52
40
0.5
Jan Feb Mar Apr May Jun
30

0.9
20
0.8

0.7
10
0.6

0 0.5
Jan Feb Mar Apr May Jun
0.4
0.3

0.2

0.1
0
Jan Feb Mar Apr May Jun

Win/Losss ratio

9 40 45

8 35 44
7
30
43
6
25
5 42
20
4 41
15
3
40
10
2

5 39
1

0 0 38
Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun

Unit Economics

LTV and CAC

30000

25000

20000
LTV
CAC
15000

10000

5000

0
Jan Feb Mar Apr May Jun

4 19.5

3.5 19

18.5
3
18
2.5
17.5
2
17
1.5
16.5
1 16
0.5 15.5

0 15
Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun

Customer Engagement and Customer Happiness (both are churn predictors)

140 40

35
135
30
130
25

125 20

15
120
10
115
5

110 0
Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun
Customer Lifetime Value Charts

Simple Calculation
Initial Cohort Size 100
Churn Rate 3%

Time in Months 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Cohort Size 100 97 94 91 89 86 83 81 78 76 74 72 69 67 65 63

100
90
80
70
60
50
40
30
20
10
0
1 7 13 19 25 31 37 43 49 55 61 67

Initial ARPC 100

Monthly ARPC growth 5
Monthly Customer Churn 3.0%

Time in Months 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Cohort Size 100 97 94 91 89 86 83 81 78 76 74 72 69 67 65 63
Cohort Payment 10000 ### ### ### ### ### ### ### ### ### ### ### ### ### ### ###
12000

10000

8000

6000

4000

2000

0
1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69
17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40
61 60 58 56 54 53 51 50 48 47 45 44 43 41 40 39 38 37 36 34 33 32 31 30

17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40
61 60 58 56 54 53 51 50 48 47 45 44 43 41 40 39 38 37 36 34 33 32 31 30
### ### ### ### ### ### ### ### ### ### ### ### ### ### ### 9919 9810 9699 9585 9470 9353 9234 9114 8993
 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63
30 29 28 27 26 25 25 24 23 22 22 21 21 20 19 19 18 18 17 17 16 16 15

41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63
30 29 28 27 26 25 25 24 23 22 22 21 21 20 19 19 18 18 17 17 16 16 15
8871 8749 8625 8501 8377 8253 8129 8004 7880 7756 7632 7509 7386 7264 7143 7022 6902 6783 6665 6548 6432 6317 6203
 64 65 66 67 68 69 70 71 72
15 14 14 13 13 13 12 12 12

64 65 66 67 68 69 70 71 72
15 14 14 13 13 13 12 12 12
6091 5979 5869 5760 5652 5545 5440 5336 5234