Sign up to save your podcasts
Or
Share Do You Know the Difference Between SaaS Math and AI Math?
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
Do You Know the Difference Between SaaS Math and AI Math?
In episode #329, Ben Murray, The SaaS CFO, breaks down the growing debate around SaaS economics versus AI economics. A recent post claimed that “SaaS metrics are broken” and that traditional KPIs no longer apply to AI companies.
Ben challenges this idea and walks through why recurring revenue metrics still matter, how revenue models differ across SaaS and AI, and what CFOs need to understand about gross margin, unit economics, and total addressable market.
Key Topics Covered
Why claims that SaaS metrics are “broken” are inaccurate
The difference between SaaS economics and AI economics
Why recurring revenue metrics still apply to AI companies
How subscription versus usage revenue impacts KPI calculation
Gross margin expectations for SaaS vs. AI companies
Whether AI companies truly generate more profit per customer
The role of absolute profit versus per-customer economics
How AI may expand TAM by targeting labor budgets, not just software budgets
How Agentic AI affects financial modeling and cost structures
Using ROSE (Return on Software Employees) to evaluate AI-driven ROI
What You’ll Learn
Why SaaS metrics still matter for both SaaS and AI companies
How CFOs should evaluate margins, ARR, and revenue quality in AI models
The difference between rate-based economics (ARPA, ACV) and volume-based economics (absolute profit)
How to think about financial strategy when transitioning from a pure SaaS model to an AI-embedded product model
How to assess realistic AI unit economics instead of relying on hype
Who This Episode Is For
SaaS CFOs and finance leaders evaluating AI investments
Founders embedding AI into their product and adjusting their financial models
Operators who want a grounded understanding of real AI economics
Investors assessing how AI shifts revenue models and margins
Related Resources
Ben’s upcoming deep-dive blog post on SaaS vs. AI economics: TheSaaSCFO.com
SaaS Metrics Foundation course for mastering KPI’s, ARR, MRR, and unit economics: https://www.thesaasacademy.com/the-saas-metrics-foundation
ROSE metric framework for analyzing AI-driven productivity and financial systems: https://www.thesaascfo.com/saas-rose-metric/
View all episodes
By Ben Murray
4.6
1111 ratings
In episode #329, Ben Murray, The SaaS CFO, breaks down the growing debate around SaaS economics versus AI economics. A recent post claimed that “SaaS metrics are broken” and that traditional KPIs no longer apply to AI companies.
Ben challenges this idea and walks through why recurring revenue metrics still matter, how revenue models differ across SaaS and AI, and what CFOs need to understand about gross margin, unit economics, and total addressable market.
Key Topics Covered
Why claims that SaaS metrics are “broken” are inaccurate
The difference between SaaS economics and AI economics
Why recurring revenue metrics still apply to AI companies
How subscription versus usage revenue impacts KPI calculation
Gross margin expectations for SaaS vs. AI companies
Whether AI companies truly generate more profit per customer
The role of absolute profit versus per-customer economics
How AI may expand TAM by targeting labor budgets, not just software budgets
How Agentic AI affects financial modeling and cost structures
Using ROSE (Return on Software Employees) to evaluate AI-driven ROI
What You’ll Learn
Why SaaS metrics still matter for both SaaS and AI companies
How CFOs should evaluate margins, ARR, and revenue quality in AI models
The difference between rate-based economics (ARPA, ACV) and volume-based economics (absolute profit)
How to think about financial strategy when transitioning from a pure SaaS model to an AI-embedded product model
How to assess realistic AI unit economics instead of relying on hype
Who This Episode Is For
SaaS CFOs and finance leaders evaluating AI investments
Founders embedding AI into their product and adjusting their financial models
Operators who want a grounded understanding of real AI economics
Investors assessing how AI shifts revenue models and margins
Related Resources
Ben’s upcoming deep-dive blog post on SaaS vs. AI economics: TheSaaSCFO.com
SaaS Metrics Foundation course for mastering KPI’s, ARR, MRR, and unit economics: https://www.thesaasacademy.com/the-saas-metrics-foundation
ROSE metric framework for analyzing AI-driven productivity and financial systems: https://www.thesaascfo.com/saas-rose-metric/
More shows like SaaS Metrics School
View all
The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
536 Listeners
The Official SaaStr Podcast: SaaS | Founders | Investors
176 Listeners
WSJ What’s News
4,366 Listeners
a16z Podcast
1,094 Listeners
CFO THOUGHT LEADER
124 Listeners
The SaaS Podcast: Build, Launch & Scale Your SaaS
187 Listeners
Founders
2,146 Listeners
Equity
338 Listeners
Y Combinator Startup Podcast
226 Listeners
Wall Street Breakfast
1,038 Listeners
Morning Brew Daily
3,013 Listeners
The Prof G Pod with Scott Galloway
5,567 Listeners
All-In with Chamath, Jason, Sacks & Friedberg
9,888 Listeners
Prof G Markets
1,404 Listeners
The SaaS CFO
3 Listeners