SaaS Metrics School

By Ben MurrayBusiness Entrepreneurship Technology Management

SaaS Metrics School episodes

January 30Can You Actually Prove the ROI of Customer Success?
Justifying investment in customer success is far harder than justifying spend in sales and marketing. In episode #350, Ben walks through a practical framework for evaluating the ROI of customer success and retention programs by tying customer success investment directly to ARR, MRR, and revenue retention performance. Instead of relying on vague qualitative benefits, this episode outlines how finance and SaaS leaders can quantify retention improvements and translate them into real financial impact.
Resources Mentioned
Blog post on quantifying customer success and retention ROI: https://www.thesaascfo.com/quantifying-investments-in-customer-success-and-retention/
SaaS Metrics Course: https://www.thesaasacademy.com/the-saas-metrics-foundation
What You’ll Learn
Where customer success should be classified on the SaaS P&L (COGS vs. Sales)
Why customer success ROI is harder to quantify than CAC or go-to-market efficiency
How to use MRR and ARR waterfalls as the foundation for retention analysis
The difference between gross revenue retention and net revenue retention in ROI modeling
How expansion, contraction, and churn act as independent levers in retention
A scenario-based approach to estimating ARR impact from retention improvements
Why It Matters
Helps justify customer success spend with real revenue and ARR impact
Improves financial modeling and long-term financial strategy decisions
Connects retention performance to unit economics and scalability
Avoids over-investing in customer success without measurable outcomes
Provides a clearer framework for board and investor discussions
6 min
January 27The Pitfalls of Using Your CRM to Report Official ARR Numbers
Many SaaS teams try to use their CRM to report ARR and MRR, but this creates serious risks—especially in forecasting, retention analysis, and due diligence. In episode #349, Ben explains why your CRM is rarely the correct source of truth for recurring revenue and where ARR should actually come from to ensure financial accuracy and credibility with investors and acquirers.
Resources Mentioned
How to Disclose ARR: https://www.thesaascfo.com/cfos-guide-to-disclosing-headline-arr-numbers/
Ben's SaaS Metrics Course: https://www.thesaasacademy.com/the-saas-metrics-foundation
What You’ll Learn
Why CRM-based ARR reporting is often inaccurate and easy to break
The difference between bookings data and revenue-based ARR
What qualifies as a true source of truth for ARR and MRR
How invoicing, revenue recognition, and the general ledger fit together
Why CRM-reported ARR frequently fails under due diligence scrutiny
When (and only when) a CRM can be trusted for recurring revenue metrics
Why It Matters
Prevents misleading ARR, MRR, and revenue metrics
Ensures your financial systems can support investor and buyer diligence
Reduces risk when calculating retention, CAC payback, and unit economics
Improves confidence in Board reporting and long-term financial strategy
4 min
January 23Why a Perfect SaaS P&L Can Still Hide Serious Problems
In episode #348 of SaaS Metrics School, Ben Murray responds to a thoughtful LinkedIn comment that challenged a common assumption: that a well-structured SaaS P&L tells the whole story. While a properly built chart of accounts and SaaS P&L are foundational, Ben explains where hidden risks can still exist beneath clean financial statements.
Using real-world examples from SaaS founders and finance teams, this episode explores how revenue commingling, misclassified expenses, role overlap, and customer concentration can quietly distort decision-making—despite an “immaculate” P&L.
Resources Mentioned
LinkedIn SaaS P&L Post: https://www.linkedin.com/posts/benrmurray_saas-activity-7418308514533552128-l2eG/
SaaS P&L Blog Post:
SaaS Metrics Course:
What You’ll Learn
Why a clean SaaS P&L can still hide structural business risk
How revenue commingling and miscoding undermine financial clarity
When and how to reclass employee costs across departments
Why materiality matters more than perfection in early-stage accounting
How customer concentration risk often surfaces late in due diligence
Why It Matters
A SaaS P&L is only as useful as the assumptions behind it
Poor expense classification can distort margins and unit economics
Misunderstanding departmental cost ownership leads to flawed decisions
Customer concentration can materially impact valuation and investor confidence
Strong financial systems require both structure and experienced oversight
7 min
January 20The Hidden Complexity Behind ARR Disclosures
In episode #347 of SaaS Metrics School, Ben Murray explores the lesser-discussed nuances behind ARR (Annual Recurring Revenue) disclosures. Building on the prior two episodes on ARR definitions and common disclosure mistakes, this discussion dives into the assumptions and gray areas that often underlie headline ARR numbers.
Drawing on extensive research across public tech company filings, Ben explains how assumptions about renewals, timing, and grace periods can materially affect how ARR is interpreted by boards, investors, and acquirers.
Resources Mentioned
Blog post: In-depth analysis of ARR definitions and disclosure practices: https://www.thesaascfo.com/cfos-guide-to-disclosing-headline-arr-numbers/
SaaS Metrics course: https://www.thesaasacademy.com/the-saas-metrics-foundation
What You’ll Learn
Why most ARR definitions assume full renewal of existing contracts
How ARR disclosures typically avoid assumptions around expansion, contraction, or churn
Why ARR is almost always a point-in-time metric rather than a forecast
Common disclaimers used to separate ARR from GAAP revenue and financial guidance
How grace periods for contract renewals can materially affect reported ARR—and how some public companies quantify that risk
Why It Matters
ARR assumptions directly influence how investors assess revenue durability
Poorly explained ARR nuances can create confusion during due diligence
Grace periods can inflate perceived recurring revenue if not disclosed properly
Transparent ARR disclosures strengthen credibility with boards and potential buyers
A defensible ARR definition supports better financial strategy and valuation discussions
6 min
January 18Common ARR Disclosure Mistakes And How to Avoid Them
In episode #346 of SaaS Metrics School, Ben Murray breaks down the most common mistakes SaaS and AI companies make when disclosing their ARR (Annual Recurring Revenue). Building on the prior episode about the five questions every ARR definition must answer, this discussion focuses on where ARR disclosures go wrong—and why unclear definitions can damage credibility with investors, boards, and acquirers.
Drawing from extensive research on public tech company filings and press releases, Ben explains how vague ARR definitions, hidden mechanics, and inconsistent methodologies create confusion and risk during fundraising, valuation discussions, and due diligence.
Resources Mentioned
Prior episode: The 5 Questions Your ARR Definition Must Answer
SaaS Metrics Course: https://www.thesaasacademy.com/the-saas-metrics-foundation
Blog post on ARR: https://www.thesaascfo.com/cfos-guide-to-disclosing-headline-arr-number
What You’ll Learn
Why a company’s pricing model does not always match its ARR model
The importance of clearly defining which revenue streams are included in ARR
Common issues with vague annualization periods (monthly vs. quarterly vs. trailing periods)
How poor disclosure of usage-based or variable revenue creates misleading ARR numbers
Why ARR definition changes and restatements require clear explanation and transparency
Why It Matters
Clear ARR disclosure builds trust with investors, boards, and business leaders
Poorly defined ARR can undermine company valuation and fundraising conversations
Inconsistent ARR definitions make benchmarking and financial modeling unreliable
Transparent ARR mechanics reduce follow-up questions during due diligence
Strong financial strategy starts with defensible, repeatable revenue metrics
4 min
January 16Why ARR Is So Often Misstated: 5 Questions to Get It Right
Defining ARR is getting harder—not easier—as SaaS, AI, usage-based pricing, and hybrid business models evolve. In episode #345 of SaaS Metrics School, Ben Murray breaks down the five critical questions every ARR definition must answer to hold up with Boards, investors, and during due diligence.
Drawing on extensive research into how public tech companies disclose ARR in press releases and SEC filings, Ben explains why ARR is not “dead” but why vague or inconsistent ARR definitions undermine credibility, comparability, and company valuation. This episode provides a practical framework to help SaaS leaders, CFOs, and founders clearly define ARR in a way that supports accurate metrics, financial modeling, and investor trust.
Resources Mentioned
Blog post on ARR definitions and disclosure best practices: https://www.thesaascfo.com/cfos-guide-to-disclosing-headline-arr-numbers/
Ben's SaaS Metrics training: https://www.thesaasacademy.com/the-saas-metrics-foundation
You’ll Learn
The five questions every ARR definition must answer to be investor-ready
Which revenue types belong in ARR—and which should be excluded
The difference between revenue-based, contract-based, and hybrid ARR calculations
How public SaaS and AI companies annualize subscription and usage-based revenue
Common approaches for handling variable, consumption, and usage revenue in ARR
Why vague ARR definitions create confusion in fundraising and due diligence
Why It Matters
Clear ARR definitions improve credibility with investors and business leaders
Poorly defined ARR can negatively impact company valuation
Consistent ARR logic enables better KPI tracking and benchmarking
Transparent ARR disclosures reduce friction during fundraising and M&A
Accurate ARR supports stronger financial strategy and forecasting
Well-defined revenue categories improve accounting and financial systems
8 min
January 13How Public Tech Companies Are Categorizing ARR
In episode #344 of SaaS Metrics School, Ben Murray shares insights from his research into how public tech companies define and disclose ARR in press releases and SEC filings. By analyzing U.S. and global public companies, Ben identifies common ARR “buckets” and explains how different revenue models influence what gets included in ARR.
Rather than debating whether ARR is “dead,” this episode focuses on how companies are actually reporting ARR today—and what private SaaS and AI companies can learn from those disclosures.
Resources Mentioned
Subscribe to Ben’s SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page
Verint (example of detailed SaaS and AI ARR disclosures): https://www.thesaascfo.com/ai-arr-vs-saas-arr-how-to-define-and-calculate/
What You’ll Learn
The most common ARR buckets used by public SaaS and tech companies
How pure subscription revenue is typically defined in ARR
How companies handle variable revenue such as usage, transactions, and overages
When managed services revenue is included in ARR—and when it isn’t
Why purely usage-based companies rarely report ARR
How revenue models and pricing structures shape ARR definitions
What ARR disclosures signal to investors and the public markets
Why It Matters
ARR definitions directly impact how investors interpret growth
Clear ARR buckets improve transparency and credibility
Mixed revenue models require thoughtful ARR construction
Public company disclosures set expectations for private companies
Poor ARR definitions can confuse metrics, forecasting, and valuation
Understanding ARR structure helps align finance, accounting, and reporting
6 min
January 10Demystifying SaaS Revenue: A Hierarchy for Predictability & Valuation
In episode #343 of SaaS Metrics School, Ben Murray demystifies SaaS revenue by breaking down the core revenue types that software, SaaS, and AI companies should be modeling on their P&L. Rather than focusing on labels, Ben explains why pricing models and revenue streams are the real drivers of financial clarity.
He walks through the most common revenue categories—subscriptions, variable usage-based revenue, professional services, managed services, hardware, and other emerging models—and shows how proper revenue segmentation becomes the foundation for accurate retention metrics, forecasting, unit economics, and due diligence readiness.
Resources Mentioned
SaaS Metrics School framework: https://www.thesaascfo.com/scaling-with-confidence-the-ultimate-saas-metrics-playbook/
Concepts covered in Ben’s SaaS Metrics course: https://www.thesaasacademy.com/the-saas-metrics-foundation
MRR schedules & MRR waterfalls: https://www.thesaasacademy.com/offers/rJhZ6VdM/checkout
What You’ll Learn
The core revenue categories every SaaS, software, and AI company should track
How subscription and usage-based revenue differ financially
Why overages must be separated from subscription revenue
How revenue segmentation enables accurate MRR schedules and waterfalls
Why retention should be calculated separately by revenue stream
How revenue structure impacts forecasting accuracy
How different revenue streams change CAC payback and LTV to CAC calculations
Why clean revenue categorization simplifies due diligence
Why It Matters
Revenue segmentation is the foundation of accurate SaaS metrics
MRR schedules and retention calculations depend on clean revenue data
Forecasts are more reliable when built from revenue waterfalls
Mixed revenue streams require adjusted CAC payback calculations
Clear revenue structure improves investor and acquirer confidence
Proper setup reduces friction during fundraising and exits
6 min
January 08Where is Your Cost of ARR Trending This Year?
In episode #342 of SaaS Metric School, Ben breaks down the Cost of ARR metric and explains why it’s one of the most practical and revealing go-to-market efficiency metrics for 2026 planning. He covers where the metric originated, how to calculate it correctly, and how to use it to sanity-check forecasts and budgets.
Ben walks through the three variations of Cost of ARR (blended, new, and expansion), explains why bookings data—not revenue—is required, and shows how benchmarking by ACV provides far more insight than aggregate benchmarks.
Resources Mentioned
Benchmarkit.ai for SaaS metrics benchmarks
Cost of ARR framework: https://www.thesaascfo.com/saas-cac-ratio/
SaaS Metrics Course: https://www.thesaasacademy.com/the-saas-metrics-foundation
What You’ll Learn
What the Cost of ARR metric is and why it matters for SaaS and AI companies
The difference between blended, new, and expansion Cost of ARR
Why Cost of ARR must be based on bookings, not revenue
How improper CAC allocation distorts Cost of ARR results
How to use Cost of ARR to validate 2026 forecasts and budgets
Why benchmarking by ACV size is more accurate than company size
What top-quartile Cost of ARR performance looks like across ACV ranges
Why It Matters
Cost of ARR quickly exposes unrealistic bookings forecasts
It connects sales and marketing spend directly to ARR outcomes
The metric helps right-size go-to-market investment for 2026
ACV-based benchmarks prevent misleading efficiency comparisons
Tracking trends over time highlights improving or degrading efficiency
Cost of ARR works across PLG, sales-led, SaaS, and AI models
6 min
December 31, 2025The ROSE Metric is Your Key to Durable Growth in 2026
In episode #341 of SaaS Metrics School, Ben Murray explains why revenue per FTE is a misleading metric for modern SaaS and AI companies and introduces the ROSE metric (Return on SaaS Employees) as a more accurate way to measure durable scaling.
Ben walks through how ROSE removes labor-cost bias, incorporates contractors and Agentic AI spend, and directly connects people investment to recurring revenue generation. He also shares practical benchmark ranges and explains how founders and finance teams should use ROSE when budgeting and forecasting for 2026.
Resources Mentioned
ROSE Metric Template: https://www.thesaascfo.com/saas-rose-metric/
ROSE Metric Bootcamp: https://www.thesaasacademy.com/offers/rJhZ6VdM
What You’ll Learn
Why revenue per FTE breaks down in global and AI-driven teams
How the ROSE metric improves capital allocation decisions
What costs should be included in ROSE
ROSE benchmark ranges and how they map to profitability and cash burn
How to interpret ROSE differently based on growth stage and company goals
How to forecast ROSE using trailing and forward-looking time periods
Why It Matters
People and AI spend are the largest investments on a SaaS or AI P&L
ROSE removes wage and geography bias from efficiency analysis
The metric directly ties recurring revenue to capital deployed
ROSE highlights whether headcount and AI investment are creating leverage
Improving ROSE over time is critical for durable, profitable scaling
Boards and investors care about efficiency trends, not just growth rates
7 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.