RESOURCES

The SaaS ROSE Metric  The Return of SaaS Employee (ROSE) metric shows the relationship between employee and employee-related costs and recurring revenue. Employees are critical success drivers in all businesses; however, like any resource, it must be managed carefully...

SaaS Preliminary Due Diligence In the world of Software as a Service (SaaS) investments and acquisitions, preliminary due diligence can mean the difference between an eventual successful transaction or costly mistakes. While there is both a buyer and a seller in every...

The global SaaS market is estimated to grow from $333 billion in 2023 to over $800 billion by the decade's end. SaaS start-ups and businesses must keep current with innovations in the SaaS industry to give themselves the information and the tools needed to capture...

Essential Liquidity Ratios and Metrics It’s vital for SaaS companies to understand how well they can meet their near-term financial responsibilities, and it is something both investors and lenders will be interested in. The two most commonly used liquidity metrics are...

What are Financial Leverage Ratios and Why Are They Important? The importance of leverage ratios and metrics can’t be overlooked when assessing a company’s financial capacity and risk. With these ratios, businesses can make informed decisions about their capital...

Annual Contract Value: What is it and How to Calculate In today’s competitive SaaS landscape, understanding and optimizing the SaaS Annual Contract Value (ACV) can provide value. A well-executed ACV strategy can provide invaluable insights into a SaaS business's...

Understanding SaaS Remaining Performance Obligations SaaS companies need to understand what their Remaining Performance Obligations (RPOs) are for liquidity management and to plan for future expansions. Publicly traded SaaS firms are now required to publicly disclose...

CAC Payback Period vs. CLTV/CAC Understanding and measuring sales efficiency is critical to a new or established SaaS business's short-term and long-term success. However, there are several sales efficiency metrics that, while similar, tell SaaS founders and leaders...

What is an Outsourced CFO? For SaaS businesses wanting to stay competitive in the rapidly changing market, it’s key to have to have an effective financial strategy. A great way to do this without breaking the budget is through outsourced CFO services - a...

Understanding the SaaS Net Promoter Score (NPS) To be successful in the fast-paced SaaS industry, ensuring customer satisfaction and loyalty is critical. One way to measure this is through the SaaS business’s Net Promoter Score (NPS), which gives insight into how...