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Scale Studio Benchmarks

$2.5M - $5M ARR

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Getting started

Reference�Templates:

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If you have questions about Scale Studio, the Four Vital Signs framework, or just want a more detailed analysis and interpretation of your Vital Signs, contact us at scalestudio@scalevp.com

Notes on Metrics and Calculations

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	Metric	Calculation	Comments
Growth	iCAGR		The Growth Rate Mirage
	Net New ARR Growth
	YoY Actual ARR Growth

Efficiency	Gross Sales Efficiency		A Primer on SaaS Sales Efficiency
	Net Sales Efficiency
	Magic Number		Magic Number Math A History of the Magic Number

Churn	Annualized Gross Churn		Note: We are currently reconciling differences in convention of signs. Going forward, we will be representing Gross Annualized Churn as a NEGATIVE number as a matter of convention.
Churn	Annualized Net Retention

Burn	Y/Y Rev Growth		While typically used in growth metrics, we’ve put this into the burn category to support the calculation of the Rule of 40.
	Op Margin (% Rev)
	Rule of 40		A Quick Primer on the Rule of 40

Reference Benchmark Templates

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Four Vital Signs: Your Data In Context

Reference Benchmark Templates

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Reference Benchmarks: $2.5M - $5M ARR

Current Quarter Benchmarks $2.5M - $5M	Growth				Efficiency			Churn		Burn
Current Quarter Benchmarks $2.5M - $5M	Y/Y Actual Ending ARR Growth	Net New ARR Growth	iCAGR	Y/Y Forward Ending ARR Growth	Gross Sales Efficiency	Net Sales Efficiency	Magic�Number	Annualized Gross Churn	Annualized �Net Retention	Operating Margin	Y/Y Revenue Growth	Rule of 40
You	[ ]%	[ ]%	[ ]%	[ ]%	[ ]%	[ ]%	[ ]%	[ ]%	[ ]%	[ ]%	[ ]%	[ ]%

Top Decile	> 471%	> 504%	> 257%	> 243%	> 2.3	> 2.0	> 2.3	> (4%)	> 162%	> (20%)	> 530%	> 340%
Top Quartile	> 284%	> 217%	> 160%	> 177%	> 1.3	> 1.1	> 1.2	> (9%)	> 127%	> (81%)	> 254%	> 114%
2nd Quartile	184% - 284%	87% - 217%	110% - 160%	124% - 177%	0.9 - 1.3	0.7 - 1.1	0.7 - 1.2	(18%) - (9%)	106% - 127%	(170%) - (81%)	159% - 254%	(22%) - 114%
3rd Quartile	117% - 184%	24% - 87%	66% - 110%	88% - 124%	0.6 - 0.9	0.4 - 0.7	0.4 - 0.7	(34%) - (18%)	95% - 106%	(260%) - (170%)	96% - 159%	(102%) - (22%)
4th Quartile	< 117%	< 24%	< 66%	< 88%	< 0.6	< 0.4	< 0.4	< (34%)	< 95%	< (260%)	< 96%	< (102%)

n: Data Points	229	222	321	231	1553	1813	3256	1432	1433	401	268	268

Your data here

OpEx Ratios: Your Data In Context

Reference Benchmark Templates

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Current Quarter Benchmarks $2.5M - $5M	OpEx
Current Quarter Benchmarks $2.5M - $5M	Gross Margin	S&M / Revenue	R&D / Revenue	G&A / Revenue	S&M / OpEx	R&D / OpEx	G&A / OpEx
You	[ ]%	[ ]%	[ ]%	[ ]%	[ ]%	[ ]%	[ ]%

Top Decile	> 94%	> 186%	> 179%	> 104%	> 60%	> 49%	> 34%
Top Quartile	> 85%	> 143%	> 135%	> 71%	> 51%	> 43%	> 27%
2nd Quartile	71% - 85%	106% - 143%	86% - 135%	52% - 71%	41% - 51%	35% - 43%	21% - 27%
3rd Quartile	51% - 71%	70% - 106%	58% - 86%	38% - 52%	34% - 41%	28% - 35%	16% - 21%
4th Quartile	< 51%	< 70%	< 58%	< 38%	< 34%	< 28%	< 16%

n: Data Points	401	349	316	317	349	316	317

Reference Benchmarks: $2.5M - $5M ARR

Your data here