This document discusses key metrics for evaluating the unit economics of different business models including e-commerce, marketplaces, and SaaS. For e-commerce and marketplaces, it distinguishes between potentially sustainable and non-sustainable scenarios based on whether net margins are positive or negative after accounting for costs like fulfillment, COGS, and customer acquisition costs. For SaaS, it introduces metrics like customer lifetime value (CLTV), churn, monthly recurring revenue (MRR), and cash-on-cash return to assess sustainability. Examples are provided for analyzing churn rates and using cohort analysis to understand net MRR churn. The document also provides a framework for evaluating SaaS businesses as good, okay, or non-

1. 1
COGS
FULFILMENT
COSTS
CAC
NET MARGIN
(CM3)
NET
REVENUE
GROSS
MARGIN
SELLER’S
REVENUE
CAC (TAC)
NET MARGIN
(CM3)
GMV
REVENUE
(TAKE RATE
x GMV)
Monthly
Recurring
REVENUE
CAC
E-COMMERCE
(Per Transaction)
MARKETPLACE
(Per Transaction)
SAAS (Per Customer)
Startup Metrics: Unit EconomicsMetrics
Net Margin ≈
Cash available for
organic growth &
overhead
CASH*
MRR
Net Margin ≈
Cash available for
organic growth &
overhead
Almost 100% of the
Cash can be used
for organic growth
& overhead
RETURNS &
Other
* Assuming 12-month licenses paid upfront and recognized monthly

2. 2
FULFILMENT
COST
COGS
CAC
Non sustainable
E-COMMERCE
COGS
FULFILMENT
COST
CAC
NET MARGIN
(CM3)
NET
REVENUE
Pot. sustainable
E-COMMERCE
NET
REVENUE
GROSS
MARGIN
(CM1)
NEGATIVE
NET MARGIN
E-Commerce: Pot. Sustainable vs non Sustainable
Esmorzars de
Finançament | ACCIÓ
Improvement through:
• Metrics Analysis &
Optimization
• Scale(?)
• Brand Recognition
NET
REVENUE
Direct
Costs per
Transaction
Metrics

3. 3
SELLER’S
REVENUE
CAC (TAC)
NET MARGIN
(CM3)
GMV
REVENUE
(TAKE RATE
x GMV)
Pot. Sustainable
MARKETPLACE
SELLER’S
REVENUE
CAC (TAC)
GMV
Non Sustainable
MARKETPLACE
REVENUE
(TAKE RATE x
GMV)
NEGATIVE
NET MARGIN
Marketplace: Pot. Sustainable vs non Sustainable
SELLER’S
REVENUE
Esmorzars de
Finançament | ACCIÓ
Improvement through:
• Metrics Analysis &
Optimization
• Scale / Liquidity /
Density
• Brand Recognition
Metrics

4. 4
SaaS Metrics: CLTV & Churn
Esmorzars de
Finançament | ACCIÓ
1st year
∑ = CLTV
MRR
CAC
1st year
CASH
MRR
2nd year
CASH
2nd year
MRR
3rd year
CASH
3rd year nth year
X% Churn
(yearly)
𝐶𝐿𝑇𝑉 =
𝑦=0
∞
1 − 𝐶ℎ𝑢𝑟𝑛 𝑦
· 𝐶𝐴𝑆𝐻1𝑠𝑡 𝑦𝑒𝑎𝑟 =
= 𝐶𝐴𝑆𝐻1𝑠𝑡 𝑦𝑒𝑎𝑟/𝐶ℎ𝑢𝑟𝑛
X% Churn
(yearly) *
Deferred
REVENUE
Deferred
REVENUE
𝐶ℎ𝑢𝑟𝑛 = 𝐿𝑜𝑠𝑡 𝑈𝑛𝑖𝑡𝑠
𝑇𝑜𝑡𝑎𝑙 𝑈𝑛𝑖𝑡𝑠
Metrics
* Recommended exercise

5. 5
SaaS Metrics: CLTV & Churn
Esmorzars de
Finançament | ACCIÓ
Example of (monthly) Churn analysis: Front App
• MRR Churn > User Churn -> The customers leaving are above average (in terms of their
contribution to MRR) 
• Net MRR Churn (MRR Churn – MRR Expansion) > 0 -> Positive sign of customer success 
Publicly available Series A Deck
𝐶ℎ𝑢𝑟𝑛 = 𝐿𝑜𝑠𝑡 𝑈𝑛𝑖𝑡𝑠
𝑇𝑜𝑡𝑎𝑙 𝑈𝑛𝑖𝑡𝑠
Metrics

6. 6
SaaS Metrics: CLTV & Churn
Esmorzars de
Finançament | ACCIÓ
Cohort analysis sheds light on the Negative Net MRR Churn
Publicly available Series A Deck
Metrics

7. 7
CAC
CASH CAC
CLTV
CASH
Ok but not great
CLTV
VALUE
DESTRUCTION
SaaS: Good, OK and non Sustainable
Good
CLTV
CAC
Non Sustainable
CLTV
Esmorzars de
Finançament | ACCIÓ
CASH
Improvement through:
• Product
• Target Customer Segmentation
Improvement through:
• Pricing (focus on cash)
• Incentives for upfront payments
Metrics