1Revenue Metrics
MRR (Monthly Recurring Revenue): The heartbeat of any subscription business. Track it weekly.
ARR (Annual Recurring Revenue): MRR × 12. This is how investors value SaaS companies.
Revenue Growth Rate: Month-over-month and year-over-year. 15-20% MoM is excellent for early stage.
2Customer Metrics
CAC (Customer Acquisition Cost): Total sales & marketing spend divided by new customers. Know this number cold.
LTV (Lifetime Value): Average revenue per customer × average customer lifetime. LTV should be 3x+ CAC.
Churn Rate: Percentage of customers who cancel. Below 5% monthly is good; below 2% is excellent.
- Calculate CAC by channel to know where to invest
- Cohort your churn analysis to spot trends
- LTV/CAC ratio below 3:1 signals unsustainable growth
3Engagement Metrics
DAU/MAU Ratio: Daily active users divided by monthly active users. 25%+ is strong engagement.
Retention Curves: Plot user activity over time. A flattening curve means you've found value.
NPS (Net Promoter Score): Would users recommend you? 50+ is world-class.
4Operational Metrics
Burn Rate: How much cash you spend per month. Know your runway (cash / burn rate).
Gross Margin: Revenue minus cost of goods sold. SaaS should target 70%+.
Employee Efficiency: Revenue per employee. Benchmark against similar stage companies.