What is SaaS metrics ?
SaaS metrics are the key performance indicators used to measure the health, growth, and efficiency of a subscription software business.
SaaS metrics are the standardized KPIs that investors, operators, and finance teams use to evaluate a SaaS company. Core metrics include MRR, ARR, churn rate, NRR, CAC, CLV, and gross margin.
Example: A SaaS company reporting to its board presents a dashboard of SaaS metrics: $2.5M ARR growing at 80% YoY, 3% monthly churn, 115% NRR, $1,800 CAC with a 14-month payback period, and 78% gross margin.
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