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SaaS Metrics 2.0
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For companies that book primarily monthly contracts
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http://www.forentrepreneurs.com/
by David Skok, General Partner at Matrix Partners
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Bookings
JanFebMarAprMayJun
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Bookings $,000's (new custs) $ 121 $ 161 $ 123 $ 169 $ 157 $ 180
Value of all closed contracts during the month (with varying durations)
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Average Deal Size $'s $ 3,025 $ 3,833 $ 2,849 $ 3,674 $ 3,263 $ 3,458
Average size of deal for full duration
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Average Contract Length
Average duration of contract signed by the new customers
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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
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ARPA (Average MRR) for new custs $ 550 $ 548 $ 570 $ 565 $ 563 $ 558
ARPA = Avg Revenue Per Acct - Avg MRR across the new customers
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ARPA - across the installed base $ 514 $ 521 $ 530 $ 538 $ 552 $ 562
Average MRR per customer across the installed base
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MRR
JanFebMarAprMayJun
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New MRR $ 22.0 $ 23.0 $ 24.5 $ 26.0 $ 27.0 $ 29.0
New MRR added from new customers signed in the month
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Churned MRR $ (8.4) $ (11.2) $ (9.0) $ (8.9) $ (8.9) $ (8.8)
Lost MRR from customers who churned in the month
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Expansion MRR $ 2.0 $ 2.5 $ 2.1 $ 1.3 $ 7.0 $ 3.4
Expansion MRR from the installed base of existing customers
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Net New MRR $ 15.6 $ 14.3 $ 17.6 $ 18.4 $ 25.1 $ 23.6
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Starting MRR $ 400.0 $ 415.6 $ 429.9 $ 447.5 $ 465.9 $ 491.0
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Ending MRR $ 415.6 $ 429.9 $ 447.5 $ 465.9 $ 491.0 $ 514.6
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ARR (Annualized Run Rate) $ 4,987 $ 5,158 $ 5,370 $ 5,591 $ 5,892 $ 6,175
This is simply MRR x 12
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Churn Metrics
JanFebMarAprMayJun
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Total # of Customers 808 825 845 866 890 916
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# of new Customers 40 42 43 46 48 52
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# of churned Customers (24) (25) (23) (25) (24) (26)
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Net New Customers 16 17 20 21 24 26
# of new Customers - # of churned Customers
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% Customer Churn3.0%3.1%2.8%3.0%2.8%2.9%
# of churned Customers / Total # of Customers (from last month)
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% MRR Churn2.1%2.7%2.1%2.0%1.9%1.8%
Churned MRR / Last month's Ending MRR
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% MRR Expansion0.5%0.6%0.5%0.3%1.5%0.7%
Expansion MRR / Last month's Ending MRR
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% Net MRR Churn1.6%2.1%1.6%1.7%0.4%1.1%
(Churned MRR - Expansion MRR)/Last months Ending MRR
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Customer Engagement Score121120125126130135
The average Customer Engagement Score across the customer base
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Net Promoter Score 28 27 29 32 33 35
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Unit Economics (new customers)
JanFebMarAprMayJun
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LTV $ 21,738 $ 16,834 $ 22,519 $ 23,457 $ 24,572 $ 25,716
ARPA * Gross Margin % / %MRR Churn Rate
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CAC $ 8,750 $ 8,571 $ 8,605 $ 8,261 $ 8,125 $ 7,692
Adjusted Sales & Marketing expense / # of new Customers
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LTV to CAC Ratio 2.5 2.0 2.6 2.8 3.0 3.3 LTV/CAC
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Months to Recover CAC 19 19 18 18 17 17
CAC/(ARPA * GM%)
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Summary Financial Metrics $000's
JanFebMarAprMayJun
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Billings (what's invoiced this month) $ 505 $ 515 $ 520 $ 490 $ 540 $ 560
Custs may be billed in advance of when revenue can be recognized
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Revenue $ 416 $ 430 $ 447 $ 466 $ 491 $ 515
Revenue is typically recognized monthly, so may vary from Billings
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Cost of Goods Solds - COGS $ 71 $ 73 $ 76 $ 79 $ 83 $ 87
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Gross Margin $ 345 $ 357 $ 371 $ 387 $ 408 $ 427
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Gross Margin %83%83%83%83%83%83%
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Total Expenses $ 640 $ 650 $ 660 $ 670 $ 680 $ 690
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 Sales & Marketing $ 350 $ 360 $ 370 $ 380 $ 390 $ 400
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 Research & Development $ 180 $ 180 $ 180 $ 180 $ 180 $ 180
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 General & Administrative $ 110 $ 110 $ 110 $ 110 $ 110 $ 110
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EBITDA $ (295) $ (293) $ (289) $ (283) $ (272) $ (263)
Based on GAAP recognized revenue
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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
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to judge how the business is doing on cash basis
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Cash & Deferred Revenue
JanFebMarAprMayJun
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Change in Cash
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Ending Cash
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Deferred Revenue
Tracks what has been billed, but can't yet be recognized as revenue
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Funnel Metrics
JanFebMarAprMayJun
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Vistors to Web Site 4,700 5,178 4,574 4,923 5,000 5,170
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Conversion from Visitors to Trials5.0%4.5%4.7%5.2%4.8%5.3%
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Trials in progress 235 233 215 256 240 274
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Conversion from Trials to Purchase17%18%20%18%20%19%
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Sales Metrics
JanFebMarAprMayJun
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No of FTE Sales reps 66.577.588.5
FTE = Full Time Equivalent (equivalent # of fully productive reps)
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Quota per sales rep $ 4.2 $ 4.2 $ 4.2 $ 4.2 $ 4.2 $ 4.2
MRR value of new customers signed
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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)
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Coverage ratio for plan1.21.21.21.21.21.2
Forcasted Sales Capacity / Bookings plan
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Productivity per FTE sales rep $ 3.7 $ 3.5 $ 3.5 $ 3.5 $ 3.4 $ 3.4
MRR value of new customers signed
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