SaaS Metrics School

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...

In episode #280, I just listened to a business podcast and must share the concept of growing versus scaling. This is such a critical concept for SaaS operators to understand. - Growing - Scaling - Metrics to measure 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 G...

In episode #279, I’m tackling the metrics to track in your SaaS journey. One you pass 5M in ARR , a SaaS CFO can do a lot with your operational and financial data. - Use my 5 Pillar SaaS Metrics Framework - Pillar 1 Growth - Pillar 2 Retention - Pillar 3 Margins - Pillar 4 Financia Profile - Pillar 5 Efficiency - Should we segment? Retention Bootcamp: https://www.thesaasacademy.com/offers/Q2uE6U2B...

In episode #278, I’m tackling the metrics to track in your SaaS journey. One you reach the 3-5M ARR range, things can get really interesting with your financial profile and metrics. - Use my 5 Pillar SaaS Metrics Framework - Pillar 1 Growth - Pillar 2 Retention - Pillar 3 Margins - Pillar 4 Financial Profile Retention Bootcamp: https://www.thesaasacademy.com/offers/Q2uE6U2B/checkout 5 Pillar SaaS...

In episode #277, I’m tackling the metrics to track in your SaaS journey. Things start to take shape in the 1-3M ARR range. - Use my 5 Pillar SaaS Metrics Framework - Pillar 1 Growth - Pillar 2  Retention - Are we concerned about our financial profile yet? Retention Bootcamp: https://www.thesaasacademy.com/offers/Q2uE6U2B/checkout 5 Pillar SaaS Metrics Framework:  https://www.thesaascfo.c...

In episode #276, I’m tackling a subscriber question who is just starting their SaaS journey. There are definitely some building blocks to put into place so you have no regrets later. - Selecting your accounting software - Who does the accounting? - Building your accounting foundation - Cash or accrual accounting - Tracking your bookings - What metrics to track? Be in the know! Join our SaaS commun...

In episode #275, I’m sharing revenue insights from helping a lot of SaaS companies with their finances. You must clearly define your major revenue categories. Next, you must define your type of variable revenue. - The 6 major revenue categories - The types of variable revenue - Why this matters Be in the know! Join our SaaS community.  https://www.thesaasacademy.com/offers/ivNjwYDx/checkout S...

In episode #274, I’m sharing some insight from a Mark Roberge talk in Tempe, AZ at PHX FWD. The software business is undergoing another major shift. In the 80/90’s it started with on-premise software, then ASP, then SaaS, and now AI. - Business model changes - What if agentic AI entered your space? - Siebel Systems - from top player to SaaS laggard Be in the know! Join our SaaS community.  ht...

In episode #273, I’m sharing some insight from a Mark Roberge talk in Tempe, AZ at PHX FWD. Should we believe the ARR per FTE hype? - Is my SaaS being left behind? - Should we believe the hype? - Current benchmarks for ARR per FTE Be in the know! Join our SaaS community.  https://www.thesaasacademy.com/offers/ivNjwYDx/checkout

In episode #272, I address poor financial close practices. You must close your books on time to understand economic performance. - What day should your books be closed? - Insource or outsource accounting? - It’s not just cash performance Be in the know! Join our SaaS community. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout

In episode #271, I address a student question from TheSaaSAcademy.com. And that’s billing pauses. How should we handle this with our revenue retention calculations? - Let’s define a billing pause - Impact on your MRR schedule - Impact on GRR and NRR - Unpredictable revenue Be in the know! Join our SaaS community.  https://www.thesaasacademy.com/offers/ivNjwYDx/checkout

In episode #270, I address the methods of calculating your retention. Contrary to those social media posts, cohort retention is NOT the only way to calculate retention. I’ll tell you why. - The 3 retention calculations - What is cohort retention - What is aggregate retention - Segmentation Be in the know! Join our SaaS community.  https://www.thesaasacademy.com/offers/ivNjwYDx/checkout  

In episode #269, I address a question from a recent conversation with a founder who was starting a software/hardware play. You must understand your business model and the type of company that you are building. - Am I Software or Hardware? - What is my business model? - Have you defined your SaaS P&L? - What about people-powered revenue? Be in the know! Join our SaaS community.  https://ww...

In episode #268, I address a debate that arose a recent SaaS CEO and CFO dinner in San Francisco. - What is Rev Ops? - CFO or CRO? Be in the know! Join our SaaS community.  https://www.thesaasacademy.com/offers/ivNjwYDx/checkout

In episode #267, I address the coveted MRR schedule. Done wrong, it causes a ton of headaches and can derail due diligence. - What is the MRR schedule? - Where do you source the data? - What systems house this data? Have you joined our SaaS community?  https://www.thesaasacademy.com/offers/ivNjwYDx/checkout