SaaS Metrics School

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...

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 wan...

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 high...

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...

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,...

RPO—Remaining Performance Obligations—might not be a term you hear often in private SaaS, but public companies are required to disclose it, and it’s becoming a critical forward-looking metric. In episode #300, Ben Murray breaks down the RPO concept, how it's calculated, and why it matters in understanding your future revenue. Whether you’re preparing for due diligence or just want a stronger grip...

How do usage-based SaaS companies convert transactional or variable revenue into Annual Recurring Revenue (ARR)? Episode #299 gives you a practical framework for presenting usage-based ARR to your Board, investors, and internal teams with clarity and confidence. After manually reviewing hundreds of public filings and investor materials, Ben Murray breaks down the real-world methods used by compani...

In episode #298 of SaaS Metrics School , Ben Murray dives deep into one of his favorite metrics: ROSE – Return on SaaS Employees . If you’re aiming to build a durable SaaS business or position your company for a private equity exit, this episode is a must-listen. Ben explains why ROSE is far more insightful than traditional Revenue per FTE and how it helps evaluate organizational efficiency by fac...

In episode #297, Ben Murray tackles a common SaaS metrics question: How should reactivations be treated when calculating gross and net revenue retention (GRR & NRR)? Key takeaways: Reactivated customers (e.g., those who churned quickly but later update payment info) should not be included in new revenue — doing so skews CAC and CAC payback metrics. Gross Revenue Retention (GRR) only accounts f...

Have you ever seen a public company restate its ARR ? In episode #296, Ben Murray dives into a real-world example from the London Stock Exchange—Celebrus Technologies—and unpacks why and how they updated their Annual Recurring Revenue (ARR) definition. Key Highlights: Financial restatements ≠ just GAAP: ARR, a non-GAAP metric, is increasingly being scrutinized as pricing and revenue models evolve....

In episode #295 of SaaS Metrics School , Ben Murray breaks down how to benchmark your CAC Payback Period accurately—and why generic social media posts can lead you astray. Too many founders rely on simplified benchmark numbers, such as “12 months or less is good,” without understanding the nuances behind the data. Ben explains why ACV segmentation is critical, how top-quartile companies perform ac...

In episode #294 of SaaS Metrics School , Ben Murray dives into one of the most important metrics for SaaS operators and investors: CAC Payback Period —with a focus on adapting it for usage-based pricing models . Whether you’re B2B, B2C, or AI-focused, CAC Payback is a must-have metric when you're investing heavily in go-to-market strategies. But how do you accurately calculate it when your busines...

In episode #293, Ben dives into Contracted Annual Recurring Revenue (CARR) —a once obscure metric that's now becoming a standard in financial dashboards and valuation discussions . Ben explains how CARR differs from ARR, breaks down the formula, and shares how it’s being used in real-world enterprise SaaS settings. He also shares why defining ARR is more complicated than it seems—especially with v...

Gross profit is a core metric in SaaS—and 80% is the benchmark often thrown around. But is that still realistic in today’s landscape? In episode #292 of SaaS Metric School , Ben Murray walks through real benchmarking data from Ray Rike’s benchmarks at Benchmarkit.ai and explains how gross profit should evolve as your business scales. He also dives into how to set up your SaaS P&L correctly and...

In episode #291 of SaaS Metrics School , Ben Murray breaks down one of the most important—and often debated—questions in SaaS finance: 💰 How much should we invest in sales and marketing this year? Ben explores how to frame your sales and marketing spend using two key concepts: Sales & Marketing as a % of Revenue (OpEx Profile) Cost of ARR (Net New Annual Recurring Revenue Cost) You'll hear cu...

How much R&D spend is too much—or not enough ? In episode #290 of SaaS Metric School , Ben Murray breaks down R&D spend benchmarks by company revenue size, based on data from Ray Rike’s Benchmarkit.ai. Whether you’re a founder, CFO, CTO, or finance leader, understanding how your R&D investment compares is crucial for building operational leverage and scaling sustainably. What You’ll Le...

In episode #289, Ben dives into one of his favorite SaaS metrics: Cost of ARR (Annual Recurring Revenue), also known as the SaaS CAC Ratio. This powerful go-to-market metric helps operators and investors evaluate how efficiently a company acquires recurring revenue. Ben breaks down how to calculate it, segment it, and benchmark it using the latest data from Ray Rike at Benchmarkit.ai. What You’ll...

In episode #288 of SaaS Metrics School , Ben Murray tackles a frequent mistake SaaS operators make when calculating Lifetime Value (LTV) — treating it as an aggregate rather than the point-in-time metric . Ben breaks down the correct formula, shares how to align it with gross revenue retention , and explains when LTV (and LTV to CAC) should be used SaaS businesses. What You’ll Learn: Why LTV...

In this episode of SaaS Metric School , Ben Murray dives deep into the often-confusing world of Subscription ARR (Annual Recurring Revenue) . After analyzing over 160 public tech company filings , Ben shares the three most common ways companies define and calculate ARR—and why these differences matter for SaaS operators, investors, and finance teams. If you’ve ever struggled with benchmarking ARR...

In episode #286 of SaaS Metrics School , Ben Murray breaks down one of the most common — and costly — mistakes SaaS founders and CFOs make when building their Monthly Recurring Revenue (MRR) schedules: netting contraction and expansion . This seemingly small error can break your ability to calculate key SaaS metrics like Gross Revenue Retention (GRR) and Net Revenue Retention (NRR) . What You’ll L...

In episode #285 of SaaS Metrics School , Ben Murray dives into one of the most overlooked levers in SaaS financial performance— G&A (General & Administrative) spend . How much should you really be spending on back office functions like finance, HR, legal, and IT? Using data from Benchmarkit. AI, Ben walks through G&A as a percent of revenue across ARR stages—from startups under $1M to...

In episode #284, let’s break down AI ARR.  As artificial intelligence transforms SaaS business models, a new metric is gaining traction: AI ARR (Artificial Intelligence Annual Recurring Revenue). But what exactly is AI ARR, how do public SaaS companies define it, and why should private SaaS operators care? In this episode, Ben Murray dives deep into how companies like Verint Systems are repor...

In episode #283, I address some recent conversations with SaaS founders who implemented my SaaS P&L format. In one instance, it was key to a successful exit. - How early should you implement the SaaS P&L - Make your data easily consumable for potential acquirors How to Structure Your SaaS P&L:  https://www.thesaascfo.com/how-to-structure-your-saas-pl/ Join our SaaS community. &nbs...

In episode #282, I cover some research I did for the SaaS Metrics Summit in NYC. Are public tech companies disclosing how they define ARR? - Is ARR dead, or is it just evolving? Join our SaaS community. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout Subscribe to Ben's SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page

In episode #281, I cover my top three metrics to determine if you have a scaling problem. This is a follow-up to episode #280, the growing versus scaling problem. - My foundational three metrics - What’s the difference between growing and scaling? Join our SaaS community. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout Subscribe to Ben's SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the...