SaaS Metrics School

At what stage should SaaS companies start segmenting their metrics? In episode #320, Ben Murray breaks down when and how to segment your SaaS metrics — from revenue segmentation to go-to-market efficiency metrics — so your data actually reflects how your business operates. Ben explains how segmentation becomes essential as you scale past $10M ARR or diversify product lines (for example, enterprise vs. SMB or PLG vs. sales-led models). He also shares how finance and ops teams can collaborate to align their chart of accounts, cost centers, and customer metadata to get meaningful insights that improve valuation and decision-making. What You’ll Learn When to start segmenting SaaS metrics (typically around $10M ARR, but earlier for multi-product businesses). The difference between revenue segmentation and financial metric segmentation. How to align your chart of accounts and cost centers for accurate CAC, CAC payback, and LTV:CAC by segment. Why aggregate CAC or payback metrics are misleading without segmentation. The importance of metadata consistency between systems (HubSpot, CRM, accounting, billing). How clean segmentation improves your company valuation and investor confidence during fundraising or exit. Why It Matters For CFOs & Finance Teams: Segmentation reveals where efficiency and retention differ by product line or customer cohort. For Founders & Operators: Understanding metrics by segment helps you scale profitably and target the right growth motion. For Investors: Segmented financial reporting and SaaS metrics reduce uncertainty and strengthen valuation models. For Accounting Leaders: Accurate cost allocation enables better financial modeling and Board reporting. Resources Mentioned The SaaS Metrics Foundation Course: https://www.thesaasacademy.com/#section-1744932157830 Quote from Ben “You can’t say your CAC payback is 12 months when it combines enterprise and SMB customers — that data is worthless.”

Does Net Revenue Retention (NRR) really move your company’s valuation multiple? Absolutely — and the difference can be worth tens of millions of dollars. In episode #319, Ben Murray breaks down new data from Meritech Capital and Benchmarkit.ai to show exactly how changes in your NRR directly impact your revenue multiple and SaaS valuation. You’ll also learn why ACV segmentation matters when benchmarking NRR and Gross Revenue Retention (GRR), and how top-performing SaaS companies are using retention metrics to drive investor confidence and higher valuations. What You’ll Learn The link between NRR and valuation multiples — a 7-point jump in NRR can double your multiple. How a $5M ARR company can see a $25M valuation swing from retention improvements. The latest SaaS benchmarks from Ray Rike (Benchmarkit.ai) for NRR and GRR. Why you must benchmark NRR by ACV, not company size or industry averages Why investors prioritize retention when evaluating durability, efficiency, and predictability of revenue.   Why It Matters For SaaS Founders: NRR improvements can directly increase your exit or fundraising valuation. For CFOs & Finance Leaders: Retention trends reveal the sustainability of your revenue model and influence your ARR growth forecast. For Investors: High NRR signals strong customer economics, pricing power, and efficient growth. For Operators: Knowing your NRR by ACV cohort allows smarter resource allocation and customer success planning. Resources Mentioned The SaaS CFO Academy: https://www.thesaasacademy.com/#section-1744932157830 Quote from Ben “A 5X difference in valuation multiple can come down to just a few points in your net revenue retention. That’s the power of strong SaaS metrics.”

Even small errors in your MRR schedule can have a massive impact on your retention metrics, and in due diligence, that can destroy investor confidence. In episode #318, Ben Murray explains why gaps in your monthly recurring revenue (MRR) schedule create inaccurate gross revenue retention (GRR) and net revenue retention (NRR) results — and how poor invoicing and renewal practices are often the root cause. You’ll learn how to identify, fix, and prevent these gaps so your SaaS financial reporting and valuation metrics remain accurate and investor-ready. What You’ll Learn ✅ What causes gaps in your MRR schedule (and how to spot them). ✅ How MRR gaps distort your retention, expansion, and churn calculations. ✅ Why these data issues raise red flags in due diligence. ✅ How to align renewal dates, contracts, and invoicing to eliminate data breaks. ✅ What a clean, accurate MRR waterfall should look like for SaaS and AI companies. ✅ Why you need at least three years of clean retention data before a fundraise or exit. Why It Matters For CFOs & Finance Teams: Gaps cause misleading GRR/NRR trends that erode trust in your data. For Founders & CEOs: Bad MRR data can hurt company valuation and slow down fundraising or acquisition. For Investors: Clean MRR schedules provide transparency into predictable revenue and retention strength. For Accountants: Accurate MRR waterfalls enable stronger financial modeling and forecasting. Resources Mentioned SaaS Metrics Foundation Course: https://www.thesaasacademy.com/the-saas-metrics-foundation Quote from Ben “If there are gaps in your MRR schedule, your retention story falls apart — and investors will notice.”

To build a world-class FP&A process in a SaaS or AI business, you need more than great dashboards—you need clean, reliable data from the right sources. In episode #317, Ben Murray shares the four foundational SaaS finance data sources that power accurate forecasts, meaningful metrics, and board-ready financial models. Drawing on his experience in FP&A across airlines and software, Ben explains how to integrate data from accounting, CRM, subscription management, and HR systems to create a trustworthy SaaS P&L and streamline financial reporting. This is the go-to framework for any finance leader, CFO, or operator seeking to enhance their financial systems and forecasting accuracy. What You’ll Learn The four essential SaaS finance data sources for great FP&A. How each data source powers financial forecasting, SaaS metrics, and Board reporting. Why poor accounting structure creates “data debt” that hurts accuracy and slows decision-making. How to link bookings data to go-to-market efficiency metrics like CAC, LTV/CAC, and CAC payback. Why accurate HR data improves unit economics and organizational efficiency analysis. Why It Matters For FP&A Leaders: Build forecasts grounded in data integrity. For SaaS Founders: Understand Which Data Sources Drive Investor-Ready Reporting. For Investors: Confidence in a company’s data architecture improves valuation and diligence outcomes. For CFOs: A solid finance foundation enables better strategic planning, cash flow forecasting, and profitability tracking. 📎 Resources Mentioned The SaaS Academy: https://www.thesaasacademy.com/#section-1744932157830 Quote from Ben “Without clean financial, bookings, revenue, and HR data, your FP&A process can’t deliver the insights your Board expects.”

Is renewal rate just another way of saying retention? Not exactly. In episode #316, Ben Murray breaks down the difference between renewal rate and the classic retention metrics—gross revenue retention (GRR), net revenue retention (NRR), and customer/logo retention. Ben explains why the renewal rate is the leading indicator of retention, especially when running annual or multi-year contracts, and why investors, private equity buyers, and your board will want to see this number alongside your standard SaaS metrics. If you’re a SaaS or AI operator looking to better understand your unit economics and improve your company’s valuation, this episode will help you put renewal rate into context as part of your financial metrics toolkit. 🧠 What You’ll Learn ✅ The definition of renewal rate and how it differs from retention. ✅ How renewal rate acts as the leading edge of retention performance. ✅ Why renewal rate matters most for SaaS and AI companies with annual or multi-year contracts. ✅ How to track renewal rate by customer count and dollar value. ✅ Why renewal rate is increasingly scrutinized in due diligence and PE-backed exits. ✅ How renewal rate complements ARR growth, gross profit, and retention metrics. 📊 Why It Matters For Finance Teams: Renewal rate shows early signs of churn risk before it hits your GRR/NRR numbers. For Leaders: Renewal performance provides insight into customer satisfaction and product adoption. For Investors & Buyers: Renewal rate is a leading signal of predictable revenue and future valuation. For Boards: Adds confidence in forecasting ARR, revenue growth, and unit economics. 📎 Resources Mentioned 🎓 SaaS Metrics Academy — Courses on SaaS P&L, retention, and financial strategy: https://www.thesaasacademy.com/#section-1744932157830 🧾 Quote from Ben “Renewal rate is the tip of the iceberg. If customers keep renewing at a high rate, your retention story will follow."  

Every Board, investor, and potential acquirer is asking the same question: How are AI initiatives driving revenue? In episode #315, Ben Murray shares insights from his research into public tech companies and how they’re defining and disclosing AI ARR (Annual Recurring Revenue). Using Verint as a case study, Ben explains how companies are leveraging AI-driven ARR, tying it to measurable outcomes, and communicating adoption in a way that resonates with both Wall Street and buyers. You’ll also hear how these disclosures may have supported Verint’s recent multibillion-dollar acquisition by Thoma Bravo. If you’re a SaaS or AI operator, this episode will help you define AI ARR, communicate adoption signals, and position your business model for higher valuation. What You’ll Learn What AI ARR is and how to calculate it. Why public companies like Verint are breaking out AI ARR from total ARR. The mechanics: how finance teams identify AI-influenced products and SKUs. Quantitative + qualitative adoption signals (e.g., number of users leveraging AI features). Why AI ARR disclosures matter for investor metrics and exit valuations. How Thoma Bravo’s acquisition of Verint shows the value of communicating AI initiatives. Why It Matters For SaaS & AI Leaders: Properly defining AI ARR helps show investors where new growth is coming from. For Finance Teams: Accurate reporting requires collaboration across accounting, product, and FP&A. For Investors: AI ARR signals measurable adoption and future revenue growth. For Valuation: Tying AI initiatives to financial outcomes increases credibility in fundraising and exit scenarios. Resources Mentioned Blog Post: How to Define AI ARR: https://www.thesaascfo.com/ai-arr-vs-saas-arr-how-to-define-and-calculate/ The SaaS Metrics Academy: https://www.thesaasacademy.com/ Quote from Ben “Don’t just say you’re building AI into your product — show investors how much ARR it’s driving and what outcomes it’s creating.”

Many usage-based companies like Twilio don’t disclose ARR as their North Star metric. So, what do they track instead to communicate growth and efficiency to investors? In episode #314, Ben Murray shares his research from 10-Q filings, press releases, and earnings calls to uncover the seven most common financial metrics that usage-based companies highlight. From revenue growth and gross margin improvements to AI adoption and RPO (Remaining Performance Obligations), you’ll learn what matters most to analysts, investors, and acquirers when ARR isn’t the headline. This is a must-listen if you’re building a usage-based business model and want to understand how to position your company for valuation and fundraising success. What You’ll Learn Why many usage-based companies don’t lead with ARR or MRR. The 7 key metrics How AI adoption is becoming a narrative driver in earnings calls. Why RPO is gaining importance as a measure of forward visibility and future revenue. Why It Matters For Investors: These metrics provide confidence in growth and scalability, even without ARR disclosures. For Founders: Tracking and segmenting these numbers helps communicate the right story to Boards and potential buyers. For Valuation: Metrics like RPO and NRR are increasingly driving company valuations in usage-based models. For Finance Leaders: Understanding which financial systems and SaaS metrics to track ensures more effective reporting and better alignment with investors.  Resources Mentioned The SaaS Metrics Academy: https://www.thesaasacademy.com/ Quote from Ben “If usage-based companies aren’t tracking ARR, what are they tracking? The answer is seven key metrics that investors want to see — from gross margin to RPO.”

There are hundreds of SaaS metrics, but which ones truly matter for SaaS leaders who want to scale, raise capital, and maximize company valuation? In episode #313, Ben Murray breaks down the five essential metrics every SaaS executive must understand — whether you’re a founder, CFO, or operator. From bookings to retention, gross profit, OpEx, and the ROSE efficiency metric, you’ll learn how to read your SaaS P&L like a top operator, and why these metrics are critical to driving durable growth, improving investor metrics, and strengthening your business model. What You’ll Learn Bookings – Signed contracts for ARR commitments, the fuel of your revenue engine. Retention – Gross revenue retention, net revenue retention, and customer retention are the ultimate health checks for recurring revenue. Margins (Gross Profit) – Why accurate COGS vs. OpEx separation matters for forecasting, profitability, and valuation. OpEx Profile – How much you should invest in R&D, sales, marketing, and G&A as a percentage of revenue. ROSE Metric (Return on SaaS Employees) – A powerful measure of organizational efficiency and path to profitability, stronger than revenue per FTE. Why These Metrics Matter Finance & Accounting: They form the backbone of your SaaS P&L and cash flow forecasting. Investor Metrics: Investors use these to evaluate efficiency, scalability, and risk. Valuation: Strong retention, margins, and efficiency drive higher SaaS valuations. Business Leaders: Understanding these numbers enables smarter decisions at both the departmental and company levels. Resources Mentioned Free Webinar – Deep dive into these five metrics, plus tips, frameworks, and pro insights: https://www.thesaasacademy.com/pl/2148701264 Quote from Ben “Every SaaS leader doesn’t need to calculate these metrics themselves — but they must understand them. These numbers tell the story of your business.”

Oracle’s stock recently jumped 37% — and the driver wasn’t just revenue growth or earnings per share. The market reacted to one SaaS metric: RPO (Remaining Performance Obligations), which surged 359% year-over-year. In episode #312, Ben Murray explains the RPO metric, how it’s calculated, and why investors are paying close attention to it. From Oracle’s $455B backlog to Snowflake’s disclosure practices, you’ll learn why this metric is becoming more important for both public and private SaaS companies. If you want to improve your investor metrics and maximize your company valuation, RPO should be on your radar. What You’ll Learn What RPO is (Remaining Performance Obligations) and how it’s calculated. Why RPO is a leading indicator of future revenue and business model stickiness. How Oracle’s massive RPO growth drove its stock surge. How public companies like Snowflake define and disclose RPO. Why private SaaS companies should start tracking RPO alongside ARR, MRR, and retention. How RPO supports investor confidence in fundraising and exit conversations. Why It Matters for SaaS Operators & Investors Investor metrics such as RPO create visibility into future revenue streams. RPO growth signals stronger customer commitment and drives higher valuations. Private SaaS companies can use RPO as a complement to retention metrics when preparing for fundraising. Resources Mentioned 📄 Blog Post: What is RPO? (Includes free template download): https://www.thesaascfo.com/understanding-remaining-performance-obligations-in-saas/ 🎓 SaaS Metrics Course – Learn how to calculate and present SaaS metrics that matter to investors: https://www.thesaasacademy.com/the-saas-metrics-foundation-course-community-phased Quote from Ben “RPO is a SaaS metric that gives investors visibility into the future. If Oracle can move its stock with RPO, you should consider tracking it too.” Disclaimer: This discussion is for informational and educational purposes only. Nothing in this episode should be taken as financial advice or a recommendation to buy, sell, or hold any stock, including Oracle. Always do your own research and consult with a licensed financial advisor before making investment decisions.

Your SaaS COGS (Cost of Goods Sold) is one of the most important foundations in your SaaS P&L — and getting it wrong can distort your gross profit margins, forecasts, SaaS metrics, investor metrics, and ultimately your valuation. In this episode, Ben Murray breaks down exactly what belongs in SaaS COGS, how to handle multi-hat employees, and why clean financial reporting is critical for scaling. If you’re a SaaS founder, CFO, or operator, episode #311 will help you properly structure your business model for accurate financial reporting and investor-ready transparency. What You’ll Learn Departments to include in COGS: Tech support, professional services, managed services, customer success (non-sales), DevOps, hardware, and transactional costs. Why COGS must be fully burdened (wages, taxes, benefits, bonuses, travel, etc.). How to handle allocations when employees wear multiple hats (without overcomplicating your accounting). The role of transactional cost centers for usage-based or variable revenue models. Why accurate COGS = accurate gross profit, margins by revenue stream, and valuation metrics. The importance of following the matching principle under accrual accounting. Why It Matters Finance & Accounting: Accurate COGS sets the foundation for reliable P&Ls and forecasts. Investor Metrics: Clean COGS helps investors and acquirers trust your financial systems and data. Valuation: Strong, transparent gross profit reporting increases confidence during fundraising or exit planning. Business Leaders: Knowing your true COGS drives better decision-making across your revenue streams.  Resources Mentioned Blog Post: How to Structure Your SaaS P&L Correctly: https://www.thesaascfo.com/what-should-be-included-in-saas-cogs/ Academy Content: Deep dive into SaaS COGS, OPEX, and financial modeling for SaaS and AI companies: https://www.thesaasacademy.com/the-saas-metrics-foundation Quote from Ben “Your SaaS COGS must be fully burdened — labor, taxes, benefits, even pizza parties. That’s how you get accurate gross profit and investor-ready financials.”

The SaaS Magic Number is one of the most Googled SaaS metric posts — but it’s also one of the most misunderstood. In episode #310, Ben Murray explains what the SaaS Magic Number really measures, why investors care about it, and the benchmarks you should use to evaluate your own business model. From the formula (revenue growth vs. sales & marketing spend) to the nuances (why churn and expansion impact the metric), Ben shows SaaS operators how to avoid common pitfalls. You’ll also hear the latest benchmark data from Ray Rike at Benchmarkit.ai, giving you investor-ready context for your next fundraising or valuation conversation. What You’ll Learn: What the SaaS Magic Number is and how to calculate it. Why it’s more than just a sales and marketing efficiency metric. The nuance: contraction, churn, and customer success also affect the number. Why ARR size and ACV segmentation are critical for accurate benchmarking. When the metric is most useful (short sales cycles, PLG) vs. when to be cautious (enterprise sales cycles). Why It Matters for SaaS Operators & Investors: The Magic Number is a widely used investor metric to gauge efficiency. Clean reporting builds confidence with investors and supports higher company valuations. Benchmarks by ARR and ACV provide a realistic picture of growth efficiency. Using the wrong interpretation can lead to bad decisions in finance strategy and fundraising. Resources Mentioned: Blog Post: https://www.thesaascfo.com/calculate-saas-magic-number/  Five-Pillar SaaS Metrics Framework: https://www.thesaasacademy.com/the-saas-metrics-foundation 🧾 Quote from Ben “Don’t just beat up sales and marketing when the magic number is low — churn, support, and customer success all play a role in this metric.”

When a strategic acquirer or private equity firm comes knocking, they’ll ask for more than your headline ARR number. In episode #309, Ben Murray shares the seven critical numbers that buyers want to see before moving forward with a deal. These SaaS metrics and investor metrics are not only central to due diligence but also directly impact your company's valuation. From ARR and contracted ARR to retention and RevRec policies, you’ll learn what to prepare now so you’re ready for the call — whether it’s tomorrow or two years from now. The point is to be prepared! What You’ll Learn: - The 7 metrics that this giant investment fund wants to see - Preparing your 4 key data sources - Don't wait; be prepared today   Why These Numbers Matter: - Fundraising & Exits: Acquirers use these metrics to assess risk, scalability, and long-term value. - Valuation Impact: Clean data on ARR, retention, and profitability drives higher multiples. - Investor Confidence: Reliable reporting reduces due diligence friction and builds trust. Don't fall prey to "deal fatigue!" Resources Mentioned: 🎓 SaaS Metrics Academy – https://www.thesaasacademy.com/the-saas-metrics-foundation-course-community-phased Quote from Ben “If a buyer calls you today, you need these seven numbers ready — clean, accurate, and tied to a strong finance foundation.”

When preparing for fundraising or an exit to private equity, one overlooked metric can derail your deal: customer concentration risk. In episode #308, Ben Murray explains what customer concentration is, why it matters to investors, and how it can directly impact your SaaS valuation. If too much of your revenue comes from just one or two customers, that risk may scare off private equity buyers or lower your valuation. Ben breaks down how to measure concentration, when it becomes a problem, and why you should start planning now — long before you enter a due diligence process.What You’ll Learn• What customer concentration is and how to calculate it.• Why concentration risk is a key investor metric in fundraising and exit planning.• How high concentration can lower a company's valuation.• The difference between strategic buyers and private equity when assessing risk.• Why SaaS operators must monitor revenue mix as part of long-term financial strategy.Why It Matters• Finance & fundraising impact: High concentration can reduce your chances of raising capital or exiting at a premium.• Valuation risk: Heavy reliance on a small number of customers lowers buyer confidence.• Investor confidence: PE firms and strategic buyers want diversified, predictable revenue streams.Resources MentionedSaaS Metrics for Investors – What Drives Valuation: https://www.thesaasacademy.com/the-saas-metrics-foundationQuote from Ben“If one customer makes up 25% of revenue, that’s a huge risk to a buyer — especially in private equity.”

The CAC payback period is one of the most important SaaS metrics — and a top investor metric used in boardrooms, fundraising, and valuation discussions. But here’s the nuance: which gross profit should you use when calculating it? In episode #307, Ben Murray explains why CAC payback must be gross margin adjusted and why using your company’s total blended gross margin is a mistake. Instead, you’ll learn how to align ARR, MRR, and revenue streams with their specific gross profit to get an accurate picture of sales efficiency and scalability. This lesson is especially critical for scaling SaaS and AI businesses as miscalculations here can distort your financial model, mislead investors, and even impact your company's valuation. What You’ll Learn Why CAC payback is a must-have metric in your financial dashboard. The correct gross profit to use in CAC payback calculations. How to calculate CAC payback when you have multiple revenue streams (subscription, usage, services, hardware). Why large SaaS companies may need segmented CAC payback periods for different products or business units. How an accurate accounting foundation prevents “accounting debt” that complicates metrics and valuation later. Why It Matters Investors rely on CAC payback to judge efficiency and growth potential. Using the wrong gross profit skews results and undermines trust in your financial metrics. Clean accounting systems and segmentation enable accurate benchmarking, which strengthens your story in fundraising and valuation discussions. Resources Mentioned 📄 Blog Post: How to calculate CAC payback the right way (with examples): https://www.thesaascfo.com/how-to-calculate-cac-payback-period-with-variable-revenue/ 🎓 SaaS Metrics Course: https://www.thesaasacademy.com/the-saas-metrics-foundation-course-community-phased Quote from Ben “You can’t just throw total company gross profit into CAC payback. It has to be tied directly to the revenue stream — otherwise the metric is meaningless.”

Is the AI funding boom overshadowing traditional SaaS? In episode #306, Ben Murray shares fresh fundraising data from over 8,000 tracked funding events to see how AI-native companies compare to pure-play SaaS in investor activity. Analyzing the first week of August, Ben breaks down the percentage of companies that are AI-first and how many SaaS products now include AI features or LLM integrations. If you’re a SaaS operator, founder, or investor, this is a quick pulse check on where capital is flowing — and what it might mean for your valuation and fundraising strategy. 🧠 What You’ll Learn Funding Breakdown – % of AI-native vs. pure-play SaaS companies receiving investment. Feature Adoption – The 50/50 split on companies adding AI or LLM features. Why the line between AI and SaaS is getting blurry in business models. How these trends might influence investor metrics, competitive positioning, and long-term company valuation. 📎 Resources Mentioned CAC Payback Period: https://www.thesaascfo.com/how-to-calculate-cac-payback-period-with-variable-revenue/ SaaS Metrics and Financial Management Course: https://www.thesaasacademy.com/the-saas-metrics-foundation-course-community-phased 🧾 Quote from Ben “The lines between SaaS and AI are blurring. A lot more AI is being embedded into pure-play SaaS products."

What SaaS metrics and financial metrics really matter when you’re scaling toward your first $1 million in ARR? In episode #305, Ben Murray breaks down the essential numbers to track using his Five Pillar SaaS Metrics Framework. From building a strong accounting foundation to tracking investor metrics like retention, bookings, and gross profit, this episode gives you the tools to set your business model up for scale and eventual company valuation growth. Whether you’re a founder, CFO, or finance lead, you’ll learn how to implement the right KPIs before you cross the $1M mark, so you can confidently present metrics to your team and/or investors and operate with clarity. What You’ll Learn: SaaSfy Your Accounting Foundation Why your accounting system (QBO, Xero, etc.) needs a SaaS-specific structure. How a clean P&L improves your ability to track revenue, margins, and KPI’s. Track Bookings Data Early Why executed contracts (new ARR, expansion ARR, and contraction) are one of the most important SaaS numbers. How bookings feed your go-to-market efficiency calculations and help measure sales ROI. Retention Is Key Gross revenue retention, net revenue retention, renewal rates, and logo retention — and when each matters most. How retention signals product-market fit and impacts valuation. Other Metrics to Watch Gross profit, EBITDA, cash flow forecasting, and cash runway. How do these connect to financial strategy and your long-term investor metrics? Why These Metrics Matter Before $1M ARR: Creates a financial systems foundation for scale. Equips you to benchmark your performance against peers. Builds a data story for fundraising and valuation discussions. Avoids costly gaps in financial modeling once growth accelerates. Resources Mentioned" 🎓 SaaS Metrics Foundation Course – next cohort starts October 7th.👉 Learn More: https://www.thesaasacademy.com/the-saas-metrics-foundation-course-community-phased 🧾 Quote from Ben “If you don’t have your accounting foundation and bookings data in place before $1M ARR, you’re setting yourself up for chaos as you scale.”

What SaaS metrics actually move the needle on your company valuation? In episode #304, Ben Murray shares his “Power 3” SaaS metrics — the three investor metrics that consistently signal scalable growth and increase SaaS valuations. While many articles list “top metrics” without context, these three have proven to be the most impactful in boardrooms, investor meetings, and due diligence. If you want to attract investors, strengthen your business model, and maximize your valuation, start by mastering these three metrics. What You’ll Learn: Gross Profit Why high gross profit (80%+ for pure-play SaaS) is a foundation for growth. How revenue mix and margins by stream impact scalability and valuation. Gross Revenue Retention (GRR) Why GRR is the ultimate measure of product stickiness. How poor retention erodes efficiency and drags on working capital. ROSE (Return on SaaS Employees) Ben’s proprietary alternative to “revenue per FTE.” Now updated to account for AI-driven roles that replace human labor. Why ROSE is more accurate for modern SaaS org efficiency.   Why These Metrics Matter for Investors & Valuation Investors look for predictable, efficient growth — these metrics show exactly that. High gross profit and retention indicate a sustainable business model. ROSE reveals operational efficiency that supports long-term profitability. Together, these KPIs create a clear narrative for maximizing company valuation.   Resources Mentioned: The Power 3 SaaS Metrics — Blog post + downloadable templates: https://www.thesaascfo.com/the-power-3-saas-metrics-that-predict-if-youll-scale-or-stall/ Quote from Ben: “If I could only choose three metrics to see if you’re scaling the right way, it would be gross profit, gross revenue retention, and ROSE.”

Accurate expense coding is critical to building a clean SaaS P&L that drives investor confidence, valuation discussions, and clarity in internal metrics. In episode #303, Ben Murray explains exactly where SaaS operators should code executive-level expenses (CMO, CRO, VP of Services, CFO, etc.) and why coding accuracy is a non-negotiable for both SaaS metrics and investor metrics. Ben also highlights the common mistake of letting G&A become a dumping ground, which can distort key financial metrics, including your gross profit margin, OpEx profile, and overall SaaS valuation. What You’ll Learn: Where to code executive salaries and expenses in your SaaS P&L Why department-level cost centers (Sales, Marketing, Services, etc.) are crucial for accurate SaaS metrics How misclassifying expenses can hurt your valuation and confuse investors during due diligence The golden rule: G&A should not be a dumping ground Tips on ensuring your bookkeeping process supports clean financial reporting Why It Matters for SaaS Operators & Investors: Accurate SaaS P&L structures are essential for clean reporting to boards and investors. Incorrect coding can skew key investor metrics like gross margin and operating expense ratios. A well-coded SaaS P&L provides the foundation to benchmark your business, manage spend, and maximize company valuation during fundraising or exit processes. Resources Mentioned: How to Properly Structure Your SaaS P&L (Blog Post + Example Template) Quote from Ben:“As a CFO, G&A isn’t a catch-all—it should only hold true G&A costs. Every expense needs to follow the people creating it.”

You’ve added new ARR—but are you spending too much to get it? In episode #302, Ben Murray walks through two practical ways to align your ARR growth with your sales and marketing spend. If you're unsure whether you're underinvesting, overspending, or just inefficient, this episode will help you benchmark your GTM motion using real data and operator-friendly metrics.  What You’ll Learn Two ways to triangulate S&M spend relative to ARR OpEx profile: Sales & Marketing spend as a % of revenue Cost of ARR: Spend required to acquire $1 of net new ARR Why relying on benchmarks without context (like ACV or price point) can mislead your analysis The difference between investment level and go-to-market efficiency Where to find benchmarks by ACV stage using Benchmarkit.ai (Ray Rike’s dataset) Why It Matters Your sales & marketing efficiency plays a critical role in sustainable SaaS growth Proper benchmarks help you avoid overspending—or underinvesting—in growth Helps investors and operators answer: “Is our GTM engine working?” Resources Mentioned Cost of ARR Blog Post + Template: https://www.thesaascfo.com/saas-cac-ratio/ Benchmark data: Benchmarkit.ai Quote from Ben “I love the Cost of ARR—because whether your ACV is $500 or $50,000, it normalizes efficiency across go-to-market models.”

Does your retention data feel off—or even meaningless—because of catch-up invoices, credit notes, or daily revenue recognition? In episode #301, Ben Murray explains how proper revenue recognition practices can sometimes interfere with clear retention reporting and what SaaS operators can do about it. Learn how to build a pro forma MRR schedule that strips out accounting noise and gives you clean, consistent retention metrics you can actually rely on. What You’ll Learn Why revenue recognition can distort retention metrics, even if your accounting is correct The difference between GAAP-based MRR and a pro forma MRR schedule How Ben built and used a pro forma model during a private equity exit process How to build your own pro forma MRR schedule using invoice data The critical role of invoice data as your source of truth Tools & Resources BackOfficeTools App: Upload your invoice data and generate retention metrics. Check out the tutorial here to learn more and sign up: https://www.thesaasacademy.com/offers/zz3ZR2WL Key Quote from Ben “We still follow proper revenue recognition, but when it comes to retention, sometimes we need a second view. A pro forma MRR schedule helps us cut through the noise.”