SaaS Metrics School

RPO Explained: The Overlooked SaaS Metric That Signals Growth


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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 on your revenue story, understanding RPO can give you an edge.

What You’ll Learn
  • What “Remaining Performance Obligations (RPO)” means in SaaS

  • How RPO connects to deferred revenue and unbilled contract amounts

  • Why RPO is considered a forward-looking visibility metric

  • Real-world RPO definition from Snowflake

  • When RPO might apply to private SaaS companies — especially with multi-year deals

    Why It Matters
    • A rising RPO often signals strong future revenue durability

    • Adds context to your SaaS metrics

    • Valuable in due diligence, PE conversations, and strategic exits

      Resources Mentioned
      • Blog Post: Deep dive on RPO with real-world examples and use cases: https://www.thesaascfo.com/understanding-remaining-performance-obligations-in-saas/

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