SaaS Metrics School

By Ben MurrayBusiness Entrepreneurship Technology Management

SaaS Metrics School episodes

June 21, 202561% R&D Spend?! What SaaS Benchmarks Reveal by Revenue Size
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 Learn:
Why R&D spend can feel like a black box—especially for CFOs
Top vs. lean R&D spending benchmarks by revenue tiers:
How R&D spend typically scales down as companies grow
Why controlling opex and creating operating leverage is key to cash flow and EBITDA
Resources & Links:
🔗 Benchmark your metrics for free at Benchmark.ai
📩 Join Ben’s SaaS community for templates, training, and upcoming events:
https://www.thesaasacademy.com/offers/dzSx6W32
Join Ben's SaaS newsletter:
https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page
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Leave a ⭐⭐⭐⭐⭐ rating or review to help others discover SaaS Metric School.
3 min
June 19, 2025What Top SaaS Performers Spend to Acquire a Dollar of ARR
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 Learn:
What is Cost of ARR and why it matters for SaaS operators and investors
The formula
How to calculate blended, new, and expansion Cost of ARR
Latest benchmark data by ACV from Benchmarkit.ai
Why aggregate benchmarks are risky and how to segment by ACV size
How to use this metric to validate your bookings forecast and GTM budget
When to adopt this metric

Resources Mentioned
Benchmark your SaaS business: Benchmarkit.ai (give-to-get model)
Ben’s blog, templates, and courses at TheSaaSCFO.com
Join the SaaS Community: https://www.thesaasacademy.com/offers/dzSx6W32
Stay in the loop with exclusive SaaS content: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page
6 min
June 17, 2025Don't Make this LTV Mistake
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 is a point-in-time estimate, not a company-wide average
The correct formula for LTV in SaaS: Cohort ARPA × Gross Margin ÷ Churn
How to choose the right churn input using gross revenue retention
When LTV to CAC is reliable vs. misleading based on your sales motion (SMB, Mid-Market, Enterprise)
Common pitfalls when using LTV in low-volume enterprise models
Key SaaS Metrics Covered:
LTV (Lifetime Value)
LTV to CAC Ratio
Gross Revenue Retention (GRR)
Cohort ARPA / ACV
Churn measurement strategy (trailing 3 vs. 6 months)
Who Should Listen:
SaaS CFOs, founders, marketers, and RevOps professionals looking to improve financial modeling and SaaS efficiency metrics — especially if you rely on paid acquisition or track LTV to CAC closely.
Resources Mentioned:
SaaS Metrics Foundation Course: https://www.thesaasacademy.com/the-saas-metrics-foundation
Free SaaS Metrics Tools: TheSaaSCFO.com
Subscribe to Ben's SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page
Like What You Hear?
Please leave a rating and review to help this podcast reach more SaaS professionals who want to build metrics-driven businesses.
6 min
June 15, 2025What Is Subscription ARR? 3 Common Definitions Explained for SaaS Operators
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 or explaining it to stakeholders, this episode will give you clarity and context.
What You’ll Learn
The three standard definitions of Subscription ARR:
Run-Rate MRR
Annualized Contract Value
Committed/Contracted ARR (CARR)
The difference between ARR and CARR and why it matters
Why even “pure subscription” businesses report ARR differently
How public companies present ARR in earnings reports and filings
The pitfalls of using AI tools (like ChatGPT) for ARR extraction
Who This Is For
This episode is a must-listen if you are:
✅ A SaaS CFO or finance leader looking to align ARR reporting with industry norms
✅ A founder or CEO trying to understand what ARR numbers mean (and don’t mean)
✅ A SaaS investor or advisor comparing metrics across multiple portfolio companies
✅ Anyone responsible for forecasting, benchmarking, or reporting SaaS revenue metrics
Resources
📬 Join Ben’s SaaS Metrics Newsletter (85,000+ operators): https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page
📚 SaaS Community for templates, events, and training: https://www.thesaasacademy.com/offers/dzSx6W32
🔁 Coming soon: A database of ARR disclosures from public tech companies
🎧 Leave a rating or review to help grow the podcast!
5 min
June 13, 2025Why SaaS Metrics Break Without Proper MRR Layering
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 Learn:
The essential structure of an accurate MRR waterfall schedule
Why separating expansion, contraction, and churn is crucial for calculating SaaS metrics
How to calculate GRR and NRR using distinct MRR layers
Why trailing 3- and 6-month annualized retention rates offer deeper insights
Pro tips on segmenting your MRR by product, ICP, or geography
Who This Is For:
SaaS founders, CFOs, FP&A leaders, and revenue ops teams looking to improve their SaaS financial reporting and ensure clean, actionable SaaS metrics that stand up to investor scrutiny.
Resources Mentioned:
Join Ben’s private SaaS metrics community: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
Subscribe to Ben's newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page
Free SaaS Metrics Tools & Templates at TheSaaSCFO.com
Enjoying the show?
Please rate and review the podcast — it helps more SaaS professionals discover how to build better businesses with metrics that matter.
3 min
June 11, 2025What’s a Healthy G&A Budget for SaaS? Benchmarks by ARR Stage
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 companies exceeding $100M. He also explains how operating leverage is created through back office efficiency and why using benchmarks segmented by ARR is crucial in SaaS metrics analysis.
What You’ll Learn:
Why aggregate SaaS benchmarks are dangerous
G&A benchmarks by ARR segment (top quartile vs. median)
The role of operating leverage in SaaS profitability
How to evaluate your own back office spend using metrics
Actionable targets for G&A as a percent of revenue
SaaS Metrics Covered:
G&A % of Revenue
Operating Leverage
Opex Profile by ARR
Benchmarking by ARR vs. ACV
Resources Mentioned:
Benchmarkit.ai
Join Ben’s SaaS Metrics community for webinars, templates, and live sessions: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
Subscribe to Ben's SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page
📈 Don’t forget to rate & review the show. It helps more SaaS founders and CFOs discover actionable finance content!
5 min
June 06, 2025How Verint Defines AI ARR and Why You Need to Know This
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 reporting AI ARR in their earnings and press releases. Ben breaks down the nuances of these definitions, the implications for SaaS valuation, and what founders, CFOs, and GTM teams need to know to stay ahead of the curve.
Key Topics Covered
What Is AI ARR?
Understand how public companies define AI-based recurring revenue and what makes it distinct from traditional ARR or subscription ARR.
Case Study: Verint’s AI ARR Disclosure
Learn how Verint, a customer and communication automation platform, separates AI ARR from Subscription ARR, and why AI now accounts for 50% of its recurring revenue.
Run Rate vs. Recognized Revenue
Explore the concept of “annualized quarterly run rate” and why some AI ARR definitions include overages and signed (but not yet active) SaaS contracts.
Why AI ARR Matters for SaaS Metrics & Board Reporting
Discover how AI ARR can become a key growth driver metric, especially for AI-first SaaS platforms or tools with significant AI adoption.
Benchmarking and Financial Transparency Trends
Understand why SaaS companies are simplifying metric reporting and focusing on high-signal KPIs like AI ARR for investors and stakeholders.
Who Should Listen
This episode is a must-listen for:
SaaS founders and CEOs scaling AI-powered platforms
CFOs and FP&A teams defining KPIs for board decks
SaaS investors tracking AI monetization trends
RevOps and metrics leaders modernizing dashboards
Anyone serious about becoming a SaaS metrics expert
Why This Episode Matters
As SaaS businesses race to integrate and monetize AI, understanding how to measure, disclose, and leverage AI ARR could be your edge in strategic planning, fundraising, or M&A.
SaaS Metrics School isn’t just about numbers—it’s about empowering you to lead with data.

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Join our SaaS community. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
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5 min
June 05, 2025 Can a Properly Formatted SaaS P&L Increase Your Valuation Multiple?
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. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
Subscribe to Ben's SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page
3 min
May 20, 2025 Are Public Tech Companies Defining ARR?
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
3 min
May 07, 2025 The Top 3 Metrics to Determine if You Have a Scaling Problem
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-saas-cfo-sign-up-landing-page
Greg's podcast: https://podcasts.apple.com/us/podcast/profitability-playbook-the-simple-numbers-podcast/id1707856652
5 min

About SaaS Metrics School

From the publisher's feed

Ben Murray brings you actionable SaaS metrics lessons that he has learned through years of being in the SaaS CFO trenches. Whether you are new to SaaS or a SaaS veteran, learn the latest SaaS and AI metrics, finance, and accounting tactics that drive financial transparency and improved decision-making.