Subscription metrics
Subscription metrics are the key performance indicators used to measure the health and growth of a recurring revenue business.
Subscription metrics include MRR, ARR, churn rate, NRR, GDR, CAC, CLV, expansion MRR, and payback period. Together, they provide a comprehensive view of a subscription business's growth efficiency, customer value, and financial health.
Example: A SaaS investor reviews a company's subscription metrics dashboard: $3M ARR growing 80% YoY, 2% monthly churn, 118% NRR, $1,500 CAC with 10-month payback, and 82% gross margin, concluding the business has the profile of a high-quality SaaS company.
