Category Archives: SaaS Metrics

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Four Metrics to Assess a SaaS Business

SaaS companies are growing rapidly due to customer demand for cloud-based solutions. For public SaaS companies, the median growth is 28% while the median loss is 4.5% (Software Equity Group).   A survey of private SaaS companies by Pacific Crest Securities reported a median 36% revenue Read More

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How’s Your SaaS Business Performing?

High-growth SaaS companies are often unprofitable, yet financial institutions value them highly. The median net income for Public SaaS companies is negative 4.5%. Yet, despite these losses, the Price to Enterprise Value ratio for SaaS companies is 8.0x compared with 3.2x for Software companies, according Read More

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Don’t be a Customer Lifetime Value Simpleton

Customer Lifetime Value or CLV (aka CLTV or LTV) is an essential SaaS metric for quantifying the present predicted value of a revenue stream from a customer.  Understanding the Customer Lifetime Value is crucial for understanding how much is prudent to spending on customer acquisition. Read More