SaaS Metrics 2.0 - For the Love of Acronyms
A detailed guide to the key metrics that SaaS investors care about, from LTV:CAC to ARR and Churn.
About this Resource
Written by investor David Skok, this is one of the most comprehensive guides to SaaS metrics available. It explains not just what the metrics are, but why they matter and how they interrelate.
Key Metrics Covered
- MRR & ARR: Monthly and Annual Recurring Revenue.
- LTV: Customer Lifetime Value.
- CAC: Customer Acquisition Cost.
- LTV:CAC Ratio: The magic number for SaaS business viability.
- Churn Rate: Both customer churn and revenue churn.
- Magic Number: A measure of sales and marketing efficiency.
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