SaaS Metrics School

By Ben MurrayBusiness Entrepreneurship Technology Management

SaaS Metrics School episodes

August 02, 2023 What is Customer Lifetime Value
In episode #20, I address customer lifetime value (LTV). LTV estimates the total cash flows that we will receive over the lifetime of a customer. It’s an estimate and changes with every new cohort.
- What is LTV?
- What are the inputs?
- How often do we measure LTV?
- LTV is not a standalone metric
- Highly applicable metric for price point, high volume SaaS
SaaS Metrics courses here: https://www.thesaasacademy.com/
Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray
Subscribe to Ben’s SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page
3 min
August 01, 2023 Don’t Forget Sales Cycle Length in Your S&M Metrics
In episode #19, I address how sales cycle length impacts the calculation of your sales and marketing efficiency metrics. This question always comes up in my SaaS metrics course and coaching. Get this wrong and your efficiency metrics will be wrong.
- What is sales cycle length?
- The time period of measurement
- What metrics are impacted?
- You’ll see convergence
SaaS Metrics courses here: https://www.thesaasacademy.com/
Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray
Subscribe to Ben’s SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page
3 min
July 31, 2023 Why is Department Coding So Important?
In episode #18, I address department coding. This is the second pillar in our proper SaaS accounting foundation. First, we need a proper chart of accounts. Second, we need the proper departments in our accounting software.
- What are departments?
- Identify your departments
- Code expenses to the department level
- Each accounting system calls it something different
- Part of our monthly financial close process
- Sets us up for financial analysis and accurate SaaS metrics
SaaS Metrics courses here: https://www.thesaasacademy.com/
Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray
Subscribe to Ben’s SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page
4 min
July 30, 2023 What Is This Chart of Accounts That I Hear About?
In episode #17, I address the chart of accounts or COA. It forms our accounting in SaaS. If the COA is wrong, our SaaS P&L and SaaS metrics will be wrong.
- What is a chart of accounts?
- Why is the COA important?
- Coding revenue
- Coding expense
SaaS Metrics courses here: https://www.thesaasacademy.com/
Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray
Subscribe to Ben’s SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page
4 min
July 29, 2023 Why Is the Rule of 40 Back in Style?
In episode #16, I address the Rule of 40, a popular investor metric. As a SaaS CFO, I like to say that financial discipline never goes out of style. There are lovers and haters of the Rule of 40. When investments were flowing, Rule of 40 was put on the back shelf.
- What is the Rule of 40?
- What is profit?
- What is growth?
- When should I use the Rule of 40?
- What does it mean, really?
- When is it a red flag?
SaaS Metrics courses here: https://www.thesaasacademy.com/
Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray
Subscribe to Ben’s SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page
4 min
July 28, 2023 Have You Adjusted Your Sales and Marketing Efficiency Metrics for Variable Revenue?
In episode #15, I address variable revenue and sales and marketing efficiency metrics. This is Pillar 5 in my 5 Pillar SaaS Metrics Framework. Variable revenue can be usage, processing, transaction, consumption, etc. Your traditional SaaS metrics will mislead if you don’t make important changes in the formulas.
- What is variable revenue?
- Do you have subscription revenue and variable revenue?
- We must add variable revenue to the equation
- We must margin adjust appropriately
- Estimates are involved; nothing is perfect
SaaS Metrics courses here: https://www.thesaasacademy.com/
Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray
Subscribe to Ben’s SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page
4 min
July 27, 2023 What Time Period Should I Measure for Revenue Retention?
In episode #14, I address time periods and revenue retention. This was a question from my student community enrolled in my SaaS Metrics Foundation course.
- Are we talking about aggregate revenue retention?
- We can segment by ICP, product line, etc.
- Are we talking about cohort revenue retention?
- I calculate monthly, T3M, T6M, and TTM
- The danger of TTM retention
- Retention can be subjective
SaaS Metrics courses here: https://www.thesaasacademy.com/
Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray
Subscribe to Ben’s SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page
3 min
July 26, 2023 Do You Know Your Margins by Revenue Stream?
In episode #13, I address our margins by revenue stream. It’s so important to have an accurately calculated gross margin and margins by revenue stream. It affects how you read your business and your SaaS metrics. You will not know where to focus to improve your business without this.
- What is our gross margin?
- What are margins by revenue stream?
- Proper revenue coding is critical
- Proper COGS department coding is critical
- Revenue stream margins feed SaaS metrics
Ben's SaaS Metrics courses here: https://www.thesaasacademy.com/
Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray
Subscribe to Ben’s SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page
4 min
July 25, 2023 How to Correctly Calculate Your Overall Gross Margin
In episode #12, I address our overall gross margin. It’s so important to have an accurately calculated gross margin. It affects how you read your business and your SaaS metrics.
- What is our gross margin?
- How to calculate gross margin
- What are the traditional departments in COGS?
- You know where to focus
- High gross margin creates leverage and cash flow
- Revenue recognition is important
- What is best in class gross margin?
Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray
Subscribe to Ben’s SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page
4 min
July 24, 2023 COGS vs. OpEx | Why Is This SO Important?
In episode #11, I address COGS vs Operating Expenses (OpEx). The coding between COGS and OpEx is critical. It requires a proper department structure and chart of accounts. Mess this up and your margins and metrics will be incorrect.
- What is COGS?
- What is OpEx?
- CS coding addressed in episode #10
- Proper coding for gross margins; sets us up for margins by revenue stream
- Proper coding for OpEx investment profile
Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray
Subscribe to Ben’s SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page
3 min

About SaaS Metrics School

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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.