SlideShare a Scribd company logo
Blake Bartlett
OpenView Venture Partners
@blakebartlett
Why the Most Important
Success Metric in SaaS
Is Misleading
Featuring the stars of the new Vince Vaughn movie –
Unfinished Business (and other celebrities)
Why the Most Important Metric in SaaS is Misleading
What’s the first metric VCs hunt for in
your pitch deck?
That’s easy..
Committed Monthly Recurring Revenue
“[CMRR] is the single most important
metric for a Cloud business to monitor,
as the change in CMRR provides the
clearest visibility into the health of any
Cloud business.”
Bessemer Venture Partners
Laws of Cloud Computing
Ask anyone.
This is the foundational metric that
everyone scours the pitch deck to find.
But is CMRR growth everything?
Why the Most Important Metric in SaaS is Misleading
Two Companies / Same CMRR Trajectory
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Total CMRR Over Time
Company ABC Company XYZ
Which company is more interesting?
It’s not a trick question.
How does a VC decide which of these
two companies to invest in?
Contrary to popular opinion, it is (a
little) more scientific than a blindfolded
dart-throwing contest.
First things first…let’s look at the next
level of detail beneath total CMRR
growth trajectory
Gross New CMRR Added per Month
Since each month can be viewed as a new customer cohort (upsells are excluded),
this tells you the size of each new cohort you’re adding (in $). This is basically your
new customer sales.
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
New Customer CMRR Per Month
Company ABC Company XYZ
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
New Customer CMRR Per Month
Company ABC Company XYZ
Now which company is interesting?
Clearly, ABC.
I MEAN…
THAT GROWTH
THO!
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
New Customer CMRR Per Month
Company ABC Company XYZ
ABC has grown the new cohort size (aka sales) by 2.4x in 2 years. ABC
clearly knows how to scale! XYZ is so boring. They’ve been adding $10K
of new CMRR every month for two years. WOMP WOMP. No thanks XYZ.
THAT
GROWTH
THOUGH!Wait one second…
Aren’t these two charts both examining
the same two companies?
Identical on one chart 
Completely different on other 
Huh?
Solving for end-of-month CMRR (1st
Chart) is pretty simple arithmetic.
End-of-Month CMRR =
Beginning-of-month CMRR + New Customer
CMRR + Upsell CMRR - Downgrade CMRR -
Churned CMRR.
Let’s look at the inputs:
1. Beginning-of-month CMRR: more of an input than a
variable here, ignore
2. New Customer CMRR: we know this from Chart 2.
Again, XYZ is growing and ABC is flat
3. Upsell CMRR
4. Downgrade CMRR
5. Churned CMRR
These are all sub-elements of retention
We can
conclude…Company
ABC has a churn issue.
What’s the best way to measure churn and
benchmark against other SaaS
companies?
Net dollar retention.
If I acquire $1 of CMRR today, what is that
$1 worth over time?
I’ve seen a lot of companies recently
with strong CMRR growth
But weak net dollar retention – with $1
of CMRR shrinking to 40-50¢ within 12
months
People call this a leaky
bucket
But…
The best companies are seeing that $1
grow (not shrink) over time.
Welcome to net negative churn.
I know I’m not the Christopher Columbus
of negative churn.
But it’s important
It can be easy to
ignore a leaky bucket
early on
These guys are good
They’re growing!
Go-to-market is scaling!
But in comparison
This equation measures CMRR in Month X as a % of CMRR in Month 1
0%
20%
40%
60%
80%
100%
120%
140%
CMRR in Month X as a % of CMRR in Month 1
Company ABC Company XYZ
Let’s look at the net dollar retention curves of Company ABC
and XYZ to understand what’s going on…
Wow. This is dramatic.
And the rose-colored glasses
come off
Let’s assume XYZ is able to scale its go-to-market like ABC.
Which will give us a true apples-to-apples comparison
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
New Customer MRR Per Month
Company ABC Company XYZ
+
=
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
Total CMRR Over Time
Company XYZ
Compared to ABC…
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
Total CMRR Over Time
Company ABC Company XYZ
XYZ pulls away from ABC.
XYZ is now ~58% bigger than ABC.
All thanks to superior net dollar retention.
Which makes VCs
say…
Let’s invest in XYZ!
What you need to remember
1. Improving net dollar retention gives you much
more leverage on the go-to-market front.
2. The 1-2 punch of accelerating customer
acquisition and healthy retention is the magic
formula for exponential growth and lots of VC
love.
Blake Bartlett
OpenView Venture Partners
@blakebartlett
You can find more content on
expansion-stage growth at
www.openviewpartners.com
Thanks!

More Related Content

What's hot

The Secrets to SaaS Pricing
The Secrets to SaaS PricingThe Secrets to SaaS Pricing
The Secrets to SaaS Pricing
Kissmetrics on SlideShare
 
Unit economics example for B2B SaaS company
Unit economics example for B2B SaaS companyUnit economics example for B2B SaaS company
Unit economics example for B2B SaaS company
Martin Steinman
 
Numbers that Actually Matter. Finding Your North Star
Numbers that Actually Matter. Finding Your North Star Numbers that Actually Matter. Finding Your North Star
Numbers that Actually Matter. Finding Your North Star
Mamoon Hamid
 
10 Practical Tips for early-stage SaaS Entrepreneurs
10 Practical Tips for early-stage SaaS Entrepreneurs10 Practical Tips for early-stage SaaS Entrepreneurs
10 Practical Tips for early-stage SaaS Entrepreneurs
louiscop
 
Building a Repeatable, Scalable & Profitable Growth Process
Building a Repeatable, Scalable & Profitable Growth ProcessBuilding a Repeatable, Scalable & Profitable Growth Process
Building a Repeatable, Scalable & Profitable Growth Process
David Skok
 
SaaS Metrics Guide | Amplify.LA
SaaS Metrics Guide | Amplify.LASaaS Metrics Guide | Amplify.LA
SaaS Metrics Guide | Amplify.LA
Amplify.la
 
12 Key Levers of SaaS Success
12 Key Levers of SaaS Success12 Key Levers of SaaS Success
12 Key Levers of SaaS Success
David Skok
 
"Numbers That Actually Matter For Founders"
"Numbers That Actually Matter For Founders""Numbers That Actually Matter For Founders"
"Numbers That Actually Matter For Founders"
saastr
 
How to Hire a Great VP Sales '14: From NY Enterprise Tech Meet-up
How to Hire a Great VP Sales '14:  From NY Enterprise Tech Meet-upHow to Hire a Great VP Sales '14:  From NY Enterprise Tech Meet-up
How to Hire a Great VP Sales '14: From NY Enterprise Tech Meet-up
stormventures
 
[PREMONEY 2014] Institutional Venture Partners>> Jules Maltz, "SaaS Money Met...
[PREMONEY 2014] Institutional Venture Partners>> Jules Maltz, "SaaS Money Met...[PREMONEY 2014] Institutional Venture Partners>> Jules Maltz, "SaaS Money Met...
[PREMONEY 2014] Institutional Venture Partners>> Jules Maltz, "SaaS Money Met...
500 Startups
 
The SaaS business model
The SaaS business modelThe SaaS business model
The SaaS business model
David Skok
 
David Skok's, SMASH Summit NYC
David Skok's,  SMASH Summit NYCDavid Skok's,  SMASH Summit NYC
David Skok's, SMASH Summit NYC
500 Startups
 
SaaStrU 301: Unlocking Growth in the Internet Economy: a Perspective from Str...
SaaStrU 301: Unlocking Growth in the Internet Economy: a Perspective from Str...SaaStrU 301: Unlocking Growth in the Internet Economy: a Perspective from Str...
SaaStrU 301: Unlocking Growth in the Internet Economy: a Perspective from Str...
saastr
 
KPI analytics for saas startups
KPI analytics for saas startupsKPI analytics for saas startups
KPI analytics for saas startups
Artyom Efremov
 
SaaS Pipeline Conversions Assignment
SaaS Pipeline Conversions AssignmentSaaS Pipeline Conversions Assignment
SaaS Pipeline Conversions Assignment
BharatRane4
 
SaaS Metrics Masterclass: What Key Business Metrics, Pricing Strategies, and ...
SaaS Metrics Masterclass: What Key Business Metrics, Pricing Strategies, and ...SaaS Metrics Masterclass: What Key Business Metrics, Pricing Strategies, and ...
SaaS Metrics Masterclass: What Key Business Metrics, Pricing Strategies, and ...
saastr
 
MRR/ARR: Calculating and Optimizing
MRR/ARR: Calculating and Optimizing MRR/ARR: Calculating and Optimizing
MRR/ARR: Calculating and Optimizing
Price Intelligently
 
Churn and what it says about product/market fit
Churn and what it says about product/market fitChurn and what it says about product/market fit
Churn and what it says about product/market fit
Brian Kelly
 
How to Lie (to Yourself) With SaaS Statistics: Lessons from DFJ
How to Lie (to Yourself) With SaaS Statistics: Lessons from DFJHow to Lie (to Yourself) With SaaS Statistics: Lessons from DFJ
How to Lie (to Yourself) With SaaS Statistics: Lessons from DFJ
saastr
 
KPIs for SaaS Startups
KPIs for SaaS StartupsKPIs for SaaS Startups
KPIs for SaaS Startups
Nick Franklin
 

What's hot (20)

The Secrets to SaaS Pricing
The Secrets to SaaS PricingThe Secrets to SaaS Pricing
The Secrets to SaaS Pricing
 
Unit economics example for B2B SaaS company
Unit economics example for B2B SaaS companyUnit economics example for B2B SaaS company
Unit economics example for B2B SaaS company
 
Numbers that Actually Matter. Finding Your North Star
Numbers that Actually Matter. Finding Your North Star Numbers that Actually Matter. Finding Your North Star
Numbers that Actually Matter. Finding Your North Star
 
10 Practical Tips for early-stage SaaS Entrepreneurs
10 Practical Tips for early-stage SaaS Entrepreneurs10 Practical Tips for early-stage SaaS Entrepreneurs
10 Practical Tips for early-stage SaaS Entrepreneurs
 
Building a Repeatable, Scalable & Profitable Growth Process
Building a Repeatable, Scalable & Profitable Growth ProcessBuilding a Repeatable, Scalable & Profitable Growth Process
Building a Repeatable, Scalable & Profitable Growth Process
 
SaaS Metrics Guide | Amplify.LA
SaaS Metrics Guide | Amplify.LASaaS Metrics Guide | Amplify.LA
SaaS Metrics Guide | Amplify.LA
 
12 Key Levers of SaaS Success
12 Key Levers of SaaS Success12 Key Levers of SaaS Success
12 Key Levers of SaaS Success
 
"Numbers That Actually Matter For Founders"
"Numbers That Actually Matter For Founders""Numbers That Actually Matter For Founders"
"Numbers That Actually Matter For Founders"
 
How to Hire a Great VP Sales '14: From NY Enterprise Tech Meet-up
How to Hire a Great VP Sales '14:  From NY Enterprise Tech Meet-upHow to Hire a Great VP Sales '14:  From NY Enterprise Tech Meet-up
How to Hire a Great VP Sales '14: From NY Enterprise Tech Meet-up
 
[PREMONEY 2014] Institutional Venture Partners>> Jules Maltz, "SaaS Money Met...
[PREMONEY 2014] Institutional Venture Partners>> Jules Maltz, "SaaS Money Met...[PREMONEY 2014] Institutional Venture Partners>> Jules Maltz, "SaaS Money Met...
[PREMONEY 2014] Institutional Venture Partners>> Jules Maltz, "SaaS Money Met...
 
The SaaS business model
The SaaS business modelThe SaaS business model
The SaaS business model
 
David Skok's, SMASH Summit NYC
David Skok's,  SMASH Summit NYCDavid Skok's,  SMASH Summit NYC
David Skok's, SMASH Summit NYC
 
SaaStrU 301: Unlocking Growth in the Internet Economy: a Perspective from Str...
SaaStrU 301: Unlocking Growth in the Internet Economy: a Perspective from Str...SaaStrU 301: Unlocking Growth in the Internet Economy: a Perspective from Str...
SaaStrU 301: Unlocking Growth in the Internet Economy: a Perspective from Str...
 
KPI analytics for saas startups
KPI analytics for saas startupsKPI analytics for saas startups
KPI analytics for saas startups
 
SaaS Pipeline Conversions Assignment
SaaS Pipeline Conversions AssignmentSaaS Pipeline Conversions Assignment
SaaS Pipeline Conversions Assignment
 
SaaS Metrics Masterclass: What Key Business Metrics, Pricing Strategies, and ...
SaaS Metrics Masterclass: What Key Business Metrics, Pricing Strategies, and ...SaaS Metrics Masterclass: What Key Business Metrics, Pricing Strategies, and ...
SaaS Metrics Masterclass: What Key Business Metrics, Pricing Strategies, and ...
 
MRR/ARR: Calculating and Optimizing
MRR/ARR: Calculating and Optimizing MRR/ARR: Calculating and Optimizing
MRR/ARR: Calculating and Optimizing
 
Churn and what it says about product/market fit
Churn and what it says about product/market fitChurn and what it says about product/market fit
Churn and what it says about product/market fit
 
How to Lie (to Yourself) With SaaS Statistics: Lessons from DFJ
How to Lie (to Yourself) With SaaS Statistics: Lessons from DFJHow to Lie (to Yourself) With SaaS Statistics: Lessons from DFJ
How to Lie (to Yourself) With SaaS Statistics: Lessons from DFJ
 
KPIs for SaaS Startups
KPIs for SaaS StartupsKPIs for SaaS Startups
KPIs for SaaS Startups
 

Viewers also liked

Metrics: Talking about Churn and Retention in the Board Room
Metrics: Talking about Churn and Retention in the Board RoomMetrics: Talking about Churn and Retention in the Board Room
Metrics: Talking about Churn and Retention in the Board Room
Gainsight
 
Building the Billion Dollar SaaS Unicorn: CEO Guide
Building the Billion Dollar SaaS Unicorn: CEO GuideBuilding the Billion Dollar SaaS Unicorn: CEO Guide
Building the Billion Dollar SaaS Unicorn: CEO Guide
Kelly Schwedland
 
Clase 2
Clase 2Clase 2
Economic condition of Bangladesh
Economic condition of Bangladesh Economic condition of Bangladesh
Economic condition of Bangladesh
Acousticos
 
CV 1ST JAN
CV 1ST JANCV 1ST JAN
CV 1ST JAN
VIKRAM CHAINPURIYA
 
презентация большая красная 10
презентация большая красная 10презентация большая красная 10
презентация большая красная 10
arenda-servis-kazan
 
Implementing Scrum Benefits Software Companies Case Study OpenView Venture Pa...
Implementing Scrum Benefits Software Companies Case Study OpenView Venture Pa...Implementing Scrum Benefits Software Companies Case Study OpenView Venture Pa...
Implementing Scrum Benefits Software Companies Case Study OpenView Venture Pa...
OpenView
 
Customer Success: The Secret to Subscription Success and the Metrics that Matter
Customer Success: The Secret to Subscription Success and the Metrics that MatterCustomer Success: The Secret to Subscription Success and the Metrics that Matter
Customer Success: The Secret to Subscription Success and the Metrics that Matter
Gainsight
 
17 Stats on the Power of Proactive Prospecting
17 Stats on the Power of Proactive Prospecting17 Stats on the Power of Proactive Prospecting
17 Stats on the Power of Proactive Prospecting
OpenView
 
Media Training 101 for CEOs and Founders
Media Training 101 for CEOs and FoundersMedia Training 101 for CEOs and Founders
Media Training 101 for CEOs and Founders
OpenView
 
Perspective on Growth Equity in 2015
Perspective on Growth Equity in 2015Perspective on Growth Equity in 2015
Perspective on Growth Equity in 2015
OpenView
 
Zeroing in on your number one customer
Zeroing in on your number one customerZeroing in on your number one customer
Zeroing in on your number one customer
OpenView
 
Marketing Leaders Weigh In: What it Takes to Scale Through Science & Creativity
Marketing Leaders Weigh In: What it Takes to Scale Through Science & CreativityMarketing Leaders Weigh In: What it Takes to Scale Through Science & Creativity
Marketing Leaders Weigh In: What it Takes to Scale Through Science & Creativity
OpenView
 
Market Segmentation Case Study
Market Segmentation Case StudyMarket Segmentation Case Study
Market Segmentation Case Study
OpenView
 
Introducción multimedia
Introducción multimediaIntroducción multimedia
Introducción multimedia
Maria Arevalo Gomez
 
Understanding Social Media
Understanding Social MediaUnderstanding Social Media
Understanding Social Media
Sophie Williams
 
5 Keys to Cultivating a High Performance Sales Culture
5 Keys to Cultivating a High Performance Sales Culture5 Keys to Cultivating a High Performance Sales Culture
5 Keys to Cultivating a High Performance Sales Culture
OpenView
 
A guide to in-depth investor pitches by Elevate Ventures
A guide to in-depth investor pitches by Elevate VenturesA guide to in-depth investor pitches by Elevate Ventures
A guide to in-depth investor pitches by Elevate Ventures
Kelly Schwedland
 
The Leading Reasons for Customer Churn in SaaS
The Leading Reasons for Customer Churn in SaaSThe Leading Reasons for Customer Churn in SaaS
The Leading Reasons for Customer Churn in SaaS
Grigore Raileanu
 

Viewers also liked (20)

Metrics: Talking about Churn and Retention in the Board Room
Metrics: Talking about Churn and Retention in the Board RoomMetrics: Talking about Churn and Retention in the Board Room
Metrics: Talking about Churn and Retention in the Board Room
 
Building the Billion Dollar SaaS Unicorn: CEO Guide
Building the Billion Dollar SaaS Unicorn: CEO GuideBuilding the Billion Dollar SaaS Unicorn: CEO Guide
Building the Billion Dollar SaaS Unicorn: CEO Guide
 
Clase 2
Clase 2Clase 2
Clase 2
 
Economic condition of Bangladesh
Economic condition of Bangladesh Economic condition of Bangladesh
Economic condition of Bangladesh
 
CV 1ST JAN
CV 1ST JANCV 1ST JAN
CV 1ST JAN
 
6
66
6
 
презентация большая красная 10
презентация большая красная 10презентация большая красная 10
презентация большая красная 10
 
Implementing Scrum Benefits Software Companies Case Study OpenView Venture Pa...
Implementing Scrum Benefits Software Companies Case Study OpenView Venture Pa...Implementing Scrum Benefits Software Companies Case Study OpenView Venture Pa...
Implementing Scrum Benefits Software Companies Case Study OpenView Venture Pa...
 
Customer Success: The Secret to Subscription Success and the Metrics that Matter
Customer Success: The Secret to Subscription Success and the Metrics that MatterCustomer Success: The Secret to Subscription Success and the Metrics that Matter
Customer Success: The Secret to Subscription Success and the Metrics that Matter
 
17 Stats on the Power of Proactive Prospecting
17 Stats on the Power of Proactive Prospecting17 Stats on the Power of Proactive Prospecting
17 Stats on the Power of Proactive Prospecting
 
Media Training 101 for CEOs and Founders
Media Training 101 for CEOs and FoundersMedia Training 101 for CEOs and Founders
Media Training 101 for CEOs and Founders
 
Perspective on Growth Equity in 2015
Perspective on Growth Equity in 2015Perspective on Growth Equity in 2015
Perspective on Growth Equity in 2015
 
Zeroing in on your number one customer
Zeroing in on your number one customerZeroing in on your number one customer
Zeroing in on your number one customer
 
Marketing Leaders Weigh In: What it Takes to Scale Through Science & Creativity
Marketing Leaders Weigh In: What it Takes to Scale Through Science & CreativityMarketing Leaders Weigh In: What it Takes to Scale Through Science & Creativity
Marketing Leaders Weigh In: What it Takes to Scale Through Science & Creativity
 
Market Segmentation Case Study
Market Segmentation Case StudyMarket Segmentation Case Study
Market Segmentation Case Study
 
Introducción multimedia
Introducción multimediaIntroducción multimedia
Introducción multimedia
 
Understanding Social Media
Understanding Social MediaUnderstanding Social Media
Understanding Social Media
 
5 Keys to Cultivating a High Performance Sales Culture
5 Keys to Cultivating a High Performance Sales Culture5 Keys to Cultivating a High Performance Sales Culture
5 Keys to Cultivating a High Performance Sales Culture
 
A guide to in-depth investor pitches by Elevate Ventures
A guide to in-depth investor pitches by Elevate VenturesA guide to in-depth investor pitches by Elevate Ventures
A guide to in-depth investor pitches by Elevate Ventures
 
The Leading Reasons for Customer Churn in SaaS
The Leading Reasons for Customer Churn in SaaSThe Leading Reasons for Customer Churn in SaaS
The Leading Reasons for Customer Churn in SaaS
 

Similar to Why the Most Important Metric in SaaS is Misleading

Latka december digital
Latka december digitalLatka december digital
Latka december digital
mustafa sarac
 
The Two Metrics That Will Save Your SaaS Business
The Two Metrics That Will Save Your SaaS BusinessThe Two Metrics That Will Save Your SaaS Business
The Two Metrics That Will Save Your SaaS Business
Strategybox
 
WebSummit 2018 - The SaaS Business Model & Metrics
WebSummit 2018 - The SaaS Business Model & MetricsWebSummit 2018 - The SaaS Business Model & Metrics
WebSummit 2018 - The SaaS Business Model & Metrics
David Skok
 
Fm11 ch 27 banking relationships
Fm11 ch 27 banking relationshipsFm11 ch 27 banking relationships
Fm11 ch 27 banking relationships
Nhu Tuyet Tran
 
A Credit Analyst Introduction
A Credit Analyst IntroductionA Credit Analyst Introduction
A Credit Analyst Introduction
Christopher Hansson
 
"Driving SaaS Success Using Key Metrics" at SaaStr Annual 2016
"Driving SaaS Success Using Key Metrics" at SaaStr Annual 2016"Driving SaaS Success Using Key Metrics" at SaaStr Annual 2016
"Driving SaaS Success Using Key Metrics" at SaaStr Annual 2016
saastr
 
SaaS Math - What I’ve learned about Subscription Economics
SaaS Math - What I’ve learned about Subscription Economics SaaS Math - What I’ve learned about Subscription Economics
SaaS Math - What I’ve learned about Subscription Economics
Björn Lilja
 
How to spend money to successfully grow your web app business - Mike McDerment
How to spend money to successfully grow your web app business - Mike McDermentHow to spend money to successfully grow your web app business - Mike McDerment
How to spend money to successfully grow your web app business - Mike McDerment
Startupfest
 
The Centrality of a Detailed Understanding of your Audience
The Centrality of a Detailed Understanding of your AudienceThe Centrality of a Detailed Understanding of your Audience
The Centrality of a Detailed Understanding of your Audience
Rising Media Ltd.
 
ROI for Internal Communicators
ROI for Internal CommunicatorsROI for Internal Communicators
ROI for Internal Communicators
Tarek Kamil
 
Thesis on AXIS bank
Thesis on AXIS bankThesis on AXIS bank
Thesis on AXIS bank
priyatosh pradhan
 
MBA 520 Milestone Two- ABC FirmPatricia Ca.docx
MBA 520 Milestone Two- ABC FirmPatricia Ca.docxMBA 520 Milestone Two- ABC FirmPatricia Ca.docx
MBA 520 Milestone Two- ABC FirmPatricia Ca.docx
alfredacavx97
 
CO2 Blast Cap - Here Comes CX!
CO2 Blast Cap - Here Comes CX!CO2 Blast Cap - Here Comes CX!
CO2 Blast Cap - Here Comes CX!
Coalmarch
 
Mapping & Measuring the Subscriber Journey
Mapping & Measuring the Subscriber JourneyMapping & Measuring the Subscriber Journey
Mapping & Measuring the Subscriber Journey
cleverbridge
 
Step 1 - RatiosSTEP 1 Print out this tabs 2 pages & make notes .docx
Step 1 - RatiosSTEP 1  Print out this tabs 2 pages & make notes .docxStep 1 - RatiosSTEP 1  Print out this tabs 2 pages & make notes .docx
Step 1 - RatiosSTEP 1 Print out this tabs 2 pages & make notes .docx
dessiechisomjj4
 
Percents
PercentsPercents
Percents
Genny Phillips
 
Financial Considerations for SaaS Companies
Financial Considerations for SaaS CompaniesFinancial Considerations for SaaS Companies
Financial Considerations for SaaS Companies
bdsoftware
 
Statistical Forecasting case by 4C Consulting
Statistical Forecasting case by 4C ConsultingStatistical Forecasting case by 4C Consulting
Statistical Forecasting case by 4C Consulting
simon1987
 
Wiggins Corporation utilizes an accounting software pack.docx
Wiggins Corporation utilizes an accounting software pack.docxWiggins Corporation utilizes an accounting software pack.docx
Wiggins Corporation utilizes an accounting software pack.docx
ambersalomon88660
 
Selling for the Lean Startup
Selling for the Lean StartupSelling for the Lean Startup
Selling for the Lean Startup
SalesQualia
 

Similar to Why the Most Important Metric in SaaS is Misleading (20)

Latka december digital
Latka december digitalLatka december digital
Latka december digital
 
The Two Metrics That Will Save Your SaaS Business
The Two Metrics That Will Save Your SaaS BusinessThe Two Metrics That Will Save Your SaaS Business
The Two Metrics That Will Save Your SaaS Business
 
WebSummit 2018 - The SaaS Business Model & Metrics
WebSummit 2018 - The SaaS Business Model & MetricsWebSummit 2018 - The SaaS Business Model & Metrics
WebSummit 2018 - The SaaS Business Model & Metrics
 
Fm11 ch 27 banking relationships
Fm11 ch 27 banking relationshipsFm11 ch 27 banking relationships
Fm11 ch 27 banking relationships
 
A Credit Analyst Introduction
A Credit Analyst IntroductionA Credit Analyst Introduction
A Credit Analyst Introduction
 
"Driving SaaS Success Using Key Metrics" at SaaStr Annual 2016
"Driving SaaS Success Using Key Metrics" at SaaStr Annual 2016"Driving SaaS Success Using Key Metrics" at SaaStr Annual 2016
"Driving SaaS Success Using Key Metrics" at SaaStr Annual 2016
 
SaaS Math - What I’ve learned about Subscription Economics
SaaS Math - What I’ve learned about Subscription Economics SaaS Math - What I’ve learned about Subscription Economics
SaaS Math - What I’ve learned about Subscription Economics
 
How to spend money to successfully grow your web app business - Mike McDerment
How to spend money to successfully grow your web app business - Mike McDermentHow to spend money to successfully grow your web app business - Mike McDerment
How to spend money to successfully grow your web app business - Mike McDerment
 
The Centrality of a Detailed Understanding of your Audience
The Centrality of a Detailed Understanding of your AudienceThe Centrality of a Detailed Understanding of your Audience
The Centrality of a Detailed Understanding of your Audience
 
ROI for Internal Communicators
ROI for Internal CommunicatorsROI for Internal Communicators
ROI for Internal Communicators
 
Thesis on AXIS bank
Thesis on AXIS bankThesis on AXIS bank
Thesis on AXIS bank
 
MBA 520 Milestone Two- ABC FirmPatricia Ca.docx
MBA 520 Milestone Two- ABC FirmPatricia Ca.docxMBA 520 Milestone Two- ABC FirmPatricia Ca.docx
MBA 520 Milestone Two- ABC FirmPatricia Ca.docx
 
CO2 Blast Cap - Here Comes CX!
CO2 Blast Cap - Here Comes CX!CO2 Blast Cap - Here Comes CX!
CO2 Blast Cap - Here Comes CX!
 
Mapping & Measuring the Subscriber Journey
Mapping & Measuring the Subscriber JourneyMapping & Measuring the Subscriber Journey
Mapping & Measuring the Subscriber Journey
 
Step 1 - RatiosSTEP 1 Print out this tabs 2 pages & make notes .docx
Step 1 - RatiosSTEP 1  Print out this tabs 2 pages & make notes .docxStep 1 - RatiosSTEP 1  Print out this tabs 2 pages & make notes .docx
Step 1 - RatiosSTEP 1 Print out this tabs 2 pages & make notes .docx
 
Percents
PercentsPercents
Percents
 
Financial Considerations for SaaS Companies
Financial Considerations for SaaS CompaniesFinancial Considerations for SaaS Companies
Financial Considerations for SaaS Companies
 
Statistical Forecasting case by 4C Consulting
Statistical Forecasting case by 4C ConsultingStatistical Forecasting case by 4C Consulting
Statistical Forecasting case by 4C Consulting
 
Wiggins Corporation utilizes an accounting software pack.docx
Wiggins Corporation utilizes an accounting software pack.docxWiggins Corporation utilizes an accounting software pack.docx
Wiggins Corporation utilizes an accounting software pack.docx
 
Selling for the Lean Startup
Selling for the Lean StartupSelling for the Lean Startup
Selling for the Lean Startup
 

More from OpenView

How to Scale with Usage-Based Pricing with Kyle Poyar from OpenView
How to Scale with Usage-Based Pricing with Kyle Poyar from OpenViewHow to Scale with Usage-Based Pricing with Kyle Poyar from OpenView
How to Scale with Usage-Based Pricing with Kyle Poyar from OpenView
OpenView
 
Investment Bank Overview from OpenView
Investment Bank Overview from OpenViewInvestment Bank Overview from OpenView
Investment Bank Overview from OpenView
OpenView
 
2022 Venture Debt Guide from OpenView
2022 Venture Debt Guide from OpenView2022 Venture Debt Guide from OpenView
2022 Venture Debt Guide from OpenView
OpenView
 
11 PLG Principles for the Age of Connected Work from OpenView
11 PLG Principles for the Age of Connected Work from OpenView11 PLG Principles for the Age of Connected Work from OpenView
11 PLG Principles for the Age of Connected Work from OpenView
OpenView
 
Inventing Product-Led Growth
Inventing Product-Led GrowthInventing Product-Led Growth
Inventing Product-Led Growth
OpenView
 
Developer Documentation Best Practices
Developer Documentation Best PracticesDeveloper Documentation Best Practices
Developer Documentation Best Practices
OpenView
 
What Happened After SaaS Companies Introduced Free Offerings Last Year
What Happened After SaaS Companies Introduced Free Offerings Last YearWhat Happened After SaaS Companies Introduced Free Offerings Last Year
What Happened After SaaS Companies Introduced Free Offerings Last Year
OpenView
 
PLG SaaS Camp - Openview - Feb 2021
PLG  SaaS Camp - Openview - Feb 2021PLG  SaaS Camp - Openview - Feb 2021
PLG SaaS Camp - Openview - Feb 2021
OpenView
 
Developer Buyer Journey Best Practices
Developer Buyer Journey Best PracticesDeveloper Buyer Journey Best Practices
Developer Buyer Journey Best Practices
OpenView
 
Developer Buyer Journey Best Practices
Developer Buyer Journey Best PracticesDeveloper Buyer Journey Best Practices
Developer Buyer Journey Best Practices
OpenView
 
How Organizations Can Focus Sales for Maximum Impact
How Organizations Can Focus Sales for Maximum ImpactHow Organizations Can Focus Sales for Maximum Impact
How Organizations Can Focus Sales for Maximum Impact
OpenView
 
The Recession Planning Framework for Startups
The Recession Planning Framework for StartupsThe Recession Planning Framework for Startups
The Recession Planning Framework for Startups
OpenView
 
Customer Health Scoring Best Practices
Customer Health Scoring Best PracticesCustomer Health Scoring Best Practices
Customer Health Scoring Best Practices
OpenView
 
Product Led Growth: The Rise of the User
Product Led Growth: The Rise of the UserProduct Led Growth: The Rise of the User
Product Led Growth: The Rise of the User
OpenView
 
2019 Expansion SaaS Benchmarks
2019 Expansion SaaS Benchmarks2019 Expansion SaaS Benchmarks
2019 Expansion SaaS Benchmarks
OpenView
 
Product Led Growth: The Rise of the User
Product Led Growth: The Rise of the UserProduct Led Growth: The Rise of the User
Product Led Growth: The Rise of the User
OpenView
 
2019 Expansion SaaS Benchmarks Report
2019 Expansion SaaS Benchmarks Report2019 Expansion SaaS Benchmarks Report
2019 Expansion SaaS Benchmarks Report
OpenView
 
The Future of B2B Growth is Product Led - Latitude59
The Future of B2B Growth is Product Led - Latitude59The Future of B2B Growth is Product Led - Latitude59
The Future of B2B Growth is Product Led - Latitude59
OpenView
 
The Future of B2B Growth is Product Led
The Future of B2B Growth is Product LedThe Future of B2B Growth is Product Led
The Future of B2B Growth is Product Led
OpenView
 
The Future of SaaS is Product Led. Are You Ready?
The Future of SaaS is Product Led. Are You Ready? The Future of SaaS is Product Led. Are You Ready?
The Future of SaaS is Product Led. Are You Ready?
OpenView
 

More from OpenView (20)

How to Scale with Usage-Based Pricing with Kyle Poyar from OpenView
How to Scale with Usage-Based Pricing with Kyle Poyar from OpenViewHow to Scale with Usage-Based Pricing with Kyle Poyar from OpenView
How to Scale with Usage-Based Pricing with Kyle Poyar from OpenView
 
Investment Bank Overview from OpenView
Investment Bank Overview from OpenViewInvestment Bank Overview from OpenView
Investment Bank Overview from OpenView
 
2022 Venture Debt Guide from OpenView
2022 Venture Debt Guide from OpenView2022 Venture Debt Guide from OpenView
2022 Venture Debt Guide from OpenView
 
11 PLG Principles for the Age of Connected Work from OpenView
11 PLG Principles for the Age of Connected Work from OpenView11 PLG Principles for the Age of Connected Work from OpenView
11 PLG Principles for the Age of Connected Work from OpenView
 
Inventing Product-Led Growth
Inventing Product-Led GrowthInventing Product-Led Growth
Inventing Product-Led Growth
 
Developer Documentation Best Practices
Developer Documentation Best PracticesDeveloper Documentation Best Practices
Developer Documentation Best Practices
 
What Happened After SaaS Companies Introduced Free Offerings Last Year
What Happened After SaaS Companies Introduced Free Offerings Last YearWhat Happened After SaaS Companies Introduced Free Offerings Last Year
What Happened After SaaS Companies Introduced Free Offerings Last Year
 
PLG SaaS Camp - Openview - Feb 2021
PLG  SaaS Camp - Openview - Feb 2021PLG  SaaS Camp - Openview - Feb 2021
PLG SaaS Camp - Openview - Feb 2021
 
Developer Buyer Journey Best Practices
Developer Buyer Journey Best PracticesDeveloper Buyer Journey Best Practices
Developer Buyer Journey Best Practices
 
Developer Buyer Journey Best Practices
Developer Buyer Journey Best PracticesDeveloper Buyer Journey Best Practices
Developer Buyer Journey Best Practices
 
How Organizations Can Focus Sales for Maximum Impact
How Organizations Can Focus Sales for Maximum ImpactHow Organizations Can Focus Sales for Maximum Impact
How Organizations Can Focus Sales for Maximum Impact
 
The Recession Planning Framework for Startups
The Recession Planning Framework for StartupsThe Recession Planning Framework for Startups
The Recession Planning Framework for Startups
 
Customer Health Scoring Best Practices
Customer Health Scoring Best PracticesCustomer Health Scoring Best Practices
Customer Health Scoring Best Practices
 
Product Led Growth: The Rise of the User
Product Led Growth: The Rise of the UserProduct Led Growth: The Rise of the User
Product Led Growth: The Rise of the User
 
2019 Expansion SaaS Benchmarks
2019 Expansion SaaS Benchmarks2019 Expansion SaaS Benchmarks
2019 Expansion SaaS Benchmarks
 
Product Led Growth: The Rise of the User
Product Led Growth: The Rise of the UserProduct Led Growth: The Rise of the User
Product Led Growth: The Rise of the User
 
2019 Expansion SaaS Benchmarks Report
2019 Expansion SaaS Benchmarks Report2019 Expansion SaaS Benchmarks Report
2019 Expansion SaaS Benchmarks Report
 
The Future of B2B Growth is Product Led - Latitude59
The Future of B2B Growth is Product Led - Latitude59The Future of B2B Growth is Product Led - Latitude59
The Future of B2B Growth is Product Led - Latitude59
 
The Future of B2B Growth is Product Led
The Future of B2B Growth is Product LedThe Future of B2B Growth is Product Led
The Future of B2B Growth is Product Led
 
The Future of SaaS is Product Led. Are You Ready?
The Future of SaaS is Product Led. Are You Ready? The Future of SaaS is Product Led. Are You Ready?
The Future of SaaS is Product Led. Are You Ready?
 

Recently uploaded

WhatsApp Tracker - Tracking WhatsApp to Boost Online Safety.pdf
WhatsApp Tracker -  Tracking WhatsApp to Boost Online Safety.pdfWhatsApp Tracker -  Tracking WhatsApp to Boost Online Safety.pdf
WhatsApp Tracker - Tracking WhatsApp to Boost Online Safety.pdf
onemonitarsoftware
 
Odoo E-commerce website development guides
Odoo E-commerce website development guidesOdoo E-commerce website development guides
Odoo E-commerce website development guides
jhkdigitalmarketing
 
CViewSurvey Digitech Pvt Ltd that works on a proven C.A.A.G. model.
CViewSurvey Digitech Pvt Ltd that  works on a proven C.A.A.G. model.CViewSurvey Digitech Pvt Ltd that  works on a proven C.A.A.G. model.
CViewSurvey Digitech Pvt Ltd that works on a proven C.A.A.G. model.
bhatinidhi2001
 
NYC 26-Jun-2024 Combined Presentations.pdf
NYC 26-Jun-2024 Combined Presentations.pdfNYC 26-Jun-2024 Combined Presentations.pdf
NYC 26-Jun-2024 Combined Presentations.pdf
AUGNYC
 
Building infrastructure with code_ A deep dive into CDK for IaC in Java.pdf
Building infrastructure with code_ A deep dive into CDK for IaC in Java.pdfBuilding infrastructure with code_ A deep dive into CDK for IaC in Java.pdf
Building infrastructure with code_ A deep dive into CDK for IaC in Java.pdf
mohitd6
 
Splunk_Remote_Work_Insights_Overview.pptx
Splunk_Remote_Work_Insights_Overview.pptxSplunk_Remote_Work_Insights_Overview.pptx
Splunk_Remote_Work_Insights_Overview.pptx
sudsdeep
 
Wired_2.0_Create_AmsterdamJUG_09072024.pptx
Wired_2.0_Create_AmsterdamJUG_09072024.pptxWired_2.0_Create_AmsterdamJUG_09072024.pptx
Wired_2.0_Create_AmsterdamJUG_09072024.pptx
SimonedeGijt
 
Software development... for all? (keynote at ICSOFT'2024)
Software development... for all? (keynote at ICSOFT'2024)Software development... for all? (keynote at ICSOFT'2024)
Software development... for all? (keynote at ICSOFT'2024)
miso_uam
 
Break data silos with real-time connectivity using Confluent Cloud Connectors
Break data silos with real-time connectivity using Confluent Cloud ConnectorsBreak data silos with real-time connectivity using Confluent Cloud Connectors
Break data silos with real-time connectivity using Confluent Cloud Connectors
confluent
 
welcome to presentation on Google Apps
welcome to   presentation on Google Appswelcome to   presentation on Google Apps
welcome to presentation on Google Apps
AsifKarimJim
 
AWS Cloud Practitioner Essentials (Second Edition) (Arabic) Course Introducti...
AWS Cloud Practitioner Essentials (Second Edition) (Arabic) Course Introducti...AWS Cloud Practitioner Essentials (Second Edition) (Arabic) Course Introducti...
AWS Cloud Practitioner Essentials (Second Edition) (Arabic) Course Introducti...
karim wahed
 
HIRE A HACKER FOR CHEATING HUSBAND/WIFE)
HIRE A HACKER FOR CHEATING HUSBAND/WIFE)HIRE A HACKER FOR CHEATING HUSBAND/WIFE)
HIRE A HACKER FOR CHEATING HUSBAND/WIFE)
josephinedrea942
 
ENISA Threat Landscape 2023 documentation
ENISA Threat Landscape 2023 documentationENISA Threat Landscape 2023 documentation
ENISA Threat Landscape 2023 documentation
sofiafernandezon
 
Folding Cheat Sheet #7 - seventh in a series
Folding Cheat Sheet #7 - seventh in a seriesFolding Cheat Sheet #7 - seventh in a series
Folding Cheat Sheet #7 - seventh in a series
Philip Schwarz
 
Safe Work Permit Management Software for Hot Work Permits
Safe Work Permit Management Software for Hot Work PermitsSafe Work Permit Management Software for Hot Work Permits
Safe Work Permit Management Software for Hot Work Permits
sheqnetworkmarketing
 
Cisco Live Announcements: New ThousandEyes Release Highlights - July 2024
Cisco Live Announcements: New ThousandEyes Release Highlights - July 2024Cisco Live Announcements: New ThousandEyes Release Highlights - July 2024
Cisco Live Announcements: New ThousandEyes Release Highlights - July 2024
ThousandEyes
 
WEBINAR SLIDES: CCX for Cloud Service Providers
WEBINAR SLIDES: CCX for Cloud Service ProvidersWEBINAR SLIDES: CCX for Cloud Service Providers
WEBINAR SLIDES: CCX for Cloud Service Providers
Severalnines
 
Introduction_to_Security_Assessments.ppt
Introduction_to_Security_Assessments.pptIntroduction_to_Security_Assessments.ppt
Introduction_to_Security_Assessments.ppt
sudsdeep
 
Vip Girls Call ServiCe Hyderabad 0000000000 Pooja Best High Class Hyderabad A...
Vip Girls Call ServiCe Hyderabad 0000000000 Pooja Best High Class Hyderabad A...Vip Girls Call ServiCe Hyderabad 0000000000 Pooja Best High Class Hyderabad A...
Vip Girls Call ServiCe Hyderabad 0000000000 Pooja Best High Class Hyderabad A...
ashiklo9823
 
Responsibilities of Fleet Managers and How TrackoBit Can Assist.pdf
Responsibilities of Fleet Managers and How TrackoBit Can Assist.pdfResponsibilities of Fleet Managers and How TrackoBit Can Assist.pdf
Responsibilities of Fleet Managers and How TrackoBit Can Assist.pdf
Trackobit
 

Recently uploaded (20)

WhatsApp Tracker - Tracking WhatsApp to Boost Online Safety.pdf
WhatsApp Tracker -  Tracking WhatsApp to Boost Online Safety.pdfWhatsApp Tracker -  Tracking WhatsApp to Boost Online Safety.pdf
WhatsApp Tracker - Tracking WhatsApp to Boost Online Safety.pdf
 
Odoo E-commerce website development guides
Odoo E-commerce website development guidesOdoo E-commerce website development guides
Odoo E-commerce website development guides
 
CViewSurvey Digitech Pvt Ltd that works on a proven C.A.A.G. model.
CViewSurvey Digitech Pvt Ltd that  works on a proven C.A.A.G. model.CViewSurvey Digitech Pvt Ltd that  works on a proven C.A.A.G. model.
CViewSurvey Digitech Pvt Ltd that works on a proven C.A.A.G. model.
 
NYC 26-Jun-2024 Combined Presentations.pdf
NYC 26-Jun-2024 Combined Presentations.pdfNYC 26-Jun-2024 Combined Presentations.pdf
NYC 26-Jun-2024 Combined Presentations.pdf
 
Building infrastructure with code_ A deep dive into CDK for IaC in Java.pdf
Building infrastructure with code_ A deep dive into CDK for IaC in Java.pdfBuilding infrastructure with code_ A deep dive into CDK for IaC in Java.pdf
Building infrastructure with code_ A deep dive into CDK for IaC in Java.pdf
 
Splunk_Remote_Work_Insights_Overview.pptx
Splunk_Remote_Work_Insights_Overview.pptxSplunk_Remote_Work_Insights_Overview.pptx
Splunk_Remote_Work_Insights_Overview.pptx
 
Wired_2.0_Create_AmsterdamJUG_09072024.pptx
Wired_2.0_Create_AmsterdamJUG_09072024.pptxWired_2.0_Create_AmsterdamJUG_09072024.pptx
Wired_2.0_Create_AmsterdamJUG_09072024.pptx
 
Software development... for all? (keynote at ICSOFT'2024)
Software development... for all? (keynote at ICSOFT'2024)Software development... for all? (keynote at ICSOFT'2024)
Software development... for all? (keynote at ICSOFT'2024)
 
Break data silos with real-time connectivity using Confluent Cloud Connectors
Break data silos with real-time connectivity using Confluent Cloud ConnectorsBreak data silos with real-time connectivity using Confluent Cloud Connectors
Break data silos with real-time connectivity using Confluent Cloud Connectors
 
welcome to presentation on Google Apps
welcome to   presentation on Google Appswelcome to   presentation on Google Apps
welcome to presentation on Google Apps
 
AWS Cloud Practitioner Essentials (Second Edition) (Arabic) Course Introducti...
AWS Cloud Practitioner Essentials (Second Edition) (Arabic) Course Introducti...AWS Cloud Practitioner Essentials (Second Edition) (Arabic) Course Introducti...
AWS Cloud Practitioner Essentials (Second Edition) (Arabic) Course Introducti...
 
HIRE A HACKER FOR CHEATING HUSBAND/WIFE)
HIRE A HACKER FOR CHEATING HUSBAND/WIFE)HIRE A HACKER FOR CHEATING HUSBAND/WIFE)
HIRE A HACKER FOR CHEATING HUSBAND/WIFE)
 
ENISA Threat Landscape 2023 documentation
ENISA Threat Landscape 2023 documentationENISA Threat Landscape 2023 documentation
ENISA Threat Landscape 2023 documentation
 
Folding Cheat Sheet #7 - seventh in a series
Folding Cheat Sheet #7 - seventh in a seriesFolding Cheat Sheet #7 - seventh in a series
Folding Cheat Sheet #7 - seventh in a series
 
Safe Work Permit Management Software for Hot Work Permits
Safe Work Permit Management Software for Hot Work PermitsSafe Work Permit Management Software for Hot Work Permits
Safe Work Permit Management Software for Hot Work Permits
 
Cisco Live Announcements: New ThousandEyes Release Highlights - July 2024
Cisco Live Announcements: New ThousandEyes Release Highlights - July 2024Cisco Live Announcements: New ThousandEyes Release Highlights - July 2024
Cisco Live Announcements: New ThousandEyes Release Highlights - July 2024
 
WEBINAR SLIDES: CCX for Cloud Service Providers
WEBINAR SLIDES: CCX for Cloud Service ProvidersWEBINAR SLIDES: CCX for Cloud Service Providers
WEBINAR SLIDES: CCX for Cloud Service Providers
 
Introduction_to_Security_Assessments.ppt
Introduction_to_Security_Assessments.pptIntroduction_to_Security_Assessments.ppt
Introduction_to_Security_Assessments.ppt
 
Vip Girls Call ServiCe Hyderabad 0000000000 Pooja Best High Class Hyderabad A...
Vip Girls Call ServiCe Hyderabad 0000000000 Pooja Best High Class Hyderabad A...Vip Girls Call ServiCe Hyderabad 0000000000 Pooja Best High Class Hyderabad A...
Vip Girls Call ServiCe Hyderabad 0000000000 Pooja Best High Class Hyderabad A...
 
Responsibilities of Fleet Managers and How TrackoBit Can Assist.pdf
Responsibilities of Fleet Managers and How TrackoBit Can Assist.pdfResponsibilities of Fleet Managers and How TrackoBit Can Assist.pdf
Responsibilities of Fleet Managers and How TrackoBit Can Assist.pdf
 

Why the Most Important Metric in SaaS is Misleading