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Key SaaS Metrics for Investor Insights

The document discusses metrics that can help tell the story of a SaaS company's growth and performance. It identifies key metrics like net MRR growth rate, ARPA, lead velocity rate, and expansion MRR rate that indicate increasing growth rates. It also lists important metrics for tracking declining churn trends, such as gross MRR churn rate, net MRR churn rate, and logo/customer churn. Finally, it mentions using metrics and potential outcomes to illustrate scenarios for investors in a total addressable market slide.

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Aditi SIngh
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55 views1 page

Key SaaS Metrics for Investor Insights

The document discusses metrics that can help tell the story of a SaaS company's growth and performance. It identifies key metrics like net MRR growth rate, ARPA, lead velocity rate, and expansion MRR rate that indicate increasing growth rates. It also lists important metrics for tracking declining churn trends, such as gross MRR churn rate, net MRR churn rate, and logo/customer churn. Finally, it mentions using metrics and potential outcomes to illustrate scenarios for investors in a total addressable market slide.

Uploaded by

Aditi SIngh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Metrics help us tell a story.

The prime focus would be on declining churn trends and increasing growth rates.
Metrics/Inputs Needed:

Increasing Growth Rates:


 Net MRR Growth Rate: One of the top metrics SaaS companies should track according to angel
investors because it answers the question ‘How fast is the company growing?

 Average Revenue Per Account/User (ARPA): Gives an insight into the new customers booked in the
month. Plotting a trendline and showing the average price point that the new customers have chosen.

 Lead Velocity Rate: The growth percentage of qualified leads month over month. It measures the
pipeline development.

 Expansion MRR Rate: The additional recurring revenue generated from existing customers through
either add-on, upsells or cross-sells.

(Declining Churn Trend):


 Gross MRR Churn Rate: that estimates the total loss to the company not including expansion. It is the
percentage of revenue lost due to cancellation or downgrades.

 Net MRR Churn Rate: The measure of lost revenue month over month (due to cancellations and
account downgrades) after factoring in any revenue from existing customers (i.e. upgrades / expansion).
It shows revenue churn minus expansion.

 Logo Churn/Customer Churn: The number or percentage of subscribers to a service that discontinue
their subscription to that service in a given time period

Cost per Acquisition


 CAC Payback Period: Number of months it takes to earn back the money invested in acquiring customers.
Indicates the breakeven point.

A TAM slide: Selling a story to help investors understand how we’re going to get our valuation while
also showing compelling metrics.

Potential Outcomes:

 Best Case Scenario


 Realistic Scenario
 Worst Case Scenario

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