9. MRR:
•
Monthly Recurring Revenue!
•
Shows how much revenue you make next month if you don‘t win
any new customers
(assuming no churn, no upgrades/downgrades, etc.)!
•
#1 SaaS metric. Much more important indicator than bookings or
cash inflow
(but cash inflow pays the bills!)
Example:
•
•
•
2 customers!
1 on a $20/m monthly plan!
1 on a $120/y yearly plan!
=> MRR = $30
ue!!
even !
ble r alue!
dicta e v
Pre fetim
ple!
ulti
i
L
nm
uatio
Val
11. Churn rate
# of customers who churned
# of customers who could have churned
Including customers who can‘t cancel in the
denominator screws up your churn estimate!
n in
chur n!
rget al pla
’t fo anci
Don r fin
you
13. Retention over
user lifetime
Change in
retention over
product lifetime
Image source:
Cohort analyses are the only way to get a good
understanding of retention and customer lifetimes
26. Find out how well your signups are converting
without being called by a salesperson. !
!
A/B test and calculate the ROI on your sales
investments based on the conversion uplift.
it’s
aybe n?
sa: M perso
ver les
Vice he sa
ot t
n
28. •
True exponential growth is very, very rare in SaaS – requires virality
which most SaaS products don‘t have!
•
Most SaaS companies grow linearly and with step changes!
•
Even a modest exponential growth rate of 10% p.m. is very hard to
sustain for a longer period of time
Reading exponential growth into linear growth
numbers can lead to wrong conclusions
N: !
MA ,
OD OW
L GO G, SL ATH
AI
G
LON OF DE
THE AMP
SR
SAA
31. Because...
•
Many metrics are actionable – they tell you what to focus on, when
to invest in acceleration, etc.!
•
Metrics help you focus your team on what matters most!
•
Investors want historic numbers, not just a snapshot
32. Thank you.
!
y ;) .com
eas cap
r, if nine
Questions?!
O nt
poi
las@
christoph@pointninecap.com
nico