• Finance , Higher Level Management , Metrics and Ratios , SaaS ,
• 24 Mar

Committed Monthly Recurring Revenue is a metric that we use in forecasting recurring revenue in future periods. You may also hear CMRR  called Contracted Monthly Recurring Revenue.  CMRR gives you an idea of future inflows and outflows of Monthly Recurring Revenue which is important when managing a subscription based business model.  We build upon the

• Corporate Strategy , Finance , Higher Level Management , Metrics and Ratios , SaaS ,
• 23 Feb

Net Revenue Churn is the percentage of revenue that is lost from existing customers in a month. It helps describe the overall health of a SaaS business. You want the measure as low as possible as you make money when this number is negative. This sometimes makes the metric feel counter-intuitive as you want most

• Corporate Strategy , Finance , Higher Level Management , Metrics and Ratios , SaaS ,
• 28 Nov

SaaS Finance Metrics have many different purposes. In this article we will look at five different ways to look at one contract with a customer. This is important because one contract has many different perspectives and uses in Financial Analysis, Accounting, and decision making. We can use some lines for Pro Forma financial statements, others

• Finance , Higher Level Management , Metrics and Ratios , SaaS ,
• 26 Nov

Total Contract Value is the total committed revenue of recurring and one time charges. This metric is also referred to as CV or TCV.  It is a forecast that is helpful in budgeting and allocating resources effectively.  This metric can help marketing and sales managers know which customers are more profitable than others.  It also helps

• Finance , Higher Level Management , SaaS ,
• 24 Nov

Monthly Recurring Revenue is the amount of revenue recieved each month in a subscription based revenue model. the MRR formula becomes an essential variable in many types of analysis. There is a lot you can do with MRR but this goes over the basic formula and idea. You may also hear of Net New or Committed MRR

• Finance , Higher Level Management , Metrics and Ratios , SaaS ,
• 24 Nov

Net New Monthly Recurring Revenue looks at the amount of new MRR that is being realized each month in the form of cash flows. We take new accounts plus upgrades to existing accounts and subtract the churn to get our Net New MRR. Here is a link to learn about MRR in general.    This

• Finance , Higher Level Management , Metrics and Ratios , SaaS ,
• 23 Nov

Customer Acquisition Cost is the average cost that it takes to get a customer. You can look at this as an aggregate total, per sales channel, by product, or any other way that makes sense. It’s important to know how much it costs to acquire a customer. In firms with a high churn rate, you’ll