SaaS Metrics School

The Top 3 SaaS Metrics That Drive Your SaaS Valuation


Listen Later

What SaaS metrics actually move the needle on your company valuation? In episode #304, Ben Murray shares his “Power 3” SaaS metrics — the three investor metrics that consistently signal scalable growth and increase SaaS valuations. While many articles list “top metrics” without context, these three have proven to be the most impactful in boardrooms, investor meetings, and due diligence.

If you want to attract investors, strengthen your business model, and maximize your valuation, start by mastering these three metrics.

What You’ll Learn:

  • Gross Profit
    • Why high gross profit (80%+ for pure-play SaaS) is a foundation for growth.
    • How revenue mix and margins by stream impact scalability and valuation.
    • Gross Revenue Retention (GRR)
      • Why GRR is the ultimate measure of product stickiness.
      • How poor retention erodes efficiency and drags on working capital.
      • ROSE (Return on SaaS Employees)
        • Ben’s proprietary alternative to “revenue per FTE.”
        • Now updated to account for AI-driven roles that replace human labor.
        • Why ROSE is more accurate for modern SaaS org efficiency.
        •  

          Why These Metrics Matter for Investors & Valuation

          • Investors look for predictable, efficient growth — these metrics show exactly that.
          • High gross profit and retention indicate a sustainable business model.
          • ROSE reveals operational efficiency that supports long-term profitability.
          • Together, these KPIs create a clear narrative for maximizing company valuation.
          •  

            Resources Mentioned:

            The Power 3 SaaS Metrics — Blog post + downloadable templates: https://www.thesaascfo.com/the-power-3-saas-metrics-that-predict-if-youll-scale-or-stall/

            Quote from Ben:

            “If I could only choose three metrics to see if you’re scaling the right way, it would be gross profit, gross revenue retention, and ROSE.”

            ...more
            View all episodesView all episodes
            Download on the App Store

            SaaS Metrics SchoolBy Ben Murray

            • 4.6
            • 4.6
            • 4.6
            • 4.6
            • 4.6

            4.6

            11 ratings


            More shows like SaaS Metrics School

            View all
            The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch by Harry Stebbings

            The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

            545 Listeners

            The Official SaaStr Podcast: SaaS | Founders | Investors by SaaStr

            The Official SaaStr Podcast: SaaS | Founders | Investors

            176 Listeners

            Invest Like the Best with Patrick O'Shaughnessy by Colossus | Investing & Business Podcasts

            Invest Like the Best with Patrick O'Shaughnessy

            2,373 Listeners

            Founders by David Senra

            Founders

            2,164 Listeners

            Equity by TechCrunch, Rebecca Bellan, Kirsten Korosec, Anthony Ha, Sean O'Kane, Theresa Loconsolo

            Equity

            342 Listeners

            All-In with Chamath, Jason, Sacks & Friedberg by All-In Podcast, LLC

            All-In with Chamath, Jason, Sacks & Friedberg

            10,185 Listeners

            The Bible in a Year (with Fr. Mike Schmitz) by Ascension

            The Bible in a Year (with Fr. Mike Schmitz)

            61,975 Listeners

            Business Breakdowns by Colossus | Investing & Business Podcasts

            Business Breakdowns

            349 Listeners

            AI + a16z by a16z

            AI + a16z

            32 Listeners

            The SaaS CFO by Ben Murray

            The SaaS CFO

            3 Listeners