EP003: Bonus Episode - Knowing and mastering your retention metrics
1Description
In this solo episode of Land and Expand, host Jay Nathan dives into the foundational SaaS metrics every leader should know cold: ARR (Annual Recurring Revenue), Gross Retention, Net Retention, and Renewal Rates. Drawing on a pivotal moment early in his career, Jay unpacks how these metrics work, why they matter, and how they influence the health and growth of a SaaS business.
You’ll learn:
- The difference between ARR and MRR, and how ARR reflects your business’s run rate.
- How Gross Retention and Net Retention are calculated, their unique roles, and why only net retention can exceed 100%.
- Why Renewal rate is a leading indicator for retention
- How multi-year contracts impact retention rates
- The importance of segmenting retention metrics
If you’re a SaaS executive or aspiring leader, this episode is a must-listen refresher to sharpen your financial acumen.
Cover Your SaaS - Financial Literacy for Non-financial Leaders: https://buy.stripe.com/bIY9EEbuKeX72M88ww
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