![]() ![]() The metrics we deep dive into are the ones we deem the most important. Note: We’ve shared links to some of the best SaaS metrics sources throughout this article and in the accompanying infographic because as mentioned, there’s a lot of great content out there. #SANITY SERIES ICONIQ SOFTWARE#Finally, we’ll see how SaaS metrics change (or not) in the context of software companies leveraging AI. We will also cover some less frequently discussed nuances, including where SaaS metrics fail in practice. With this article, we hope to provide insight into the way we think about measuring efficiency and predictability, how we assess company performance and how we make investment decisions. As an organization, Georgian is dedicated to supporting and adding value to entrepreneurs throughout their growth journey. The purpose of this article is to shed some light on my learnings, as well as Georgian’s overall perspective on SaaS metrics. In short, I’m still deep in the rabbit hole of learning, and that’s probably the way it should be. There is no one-size-fits-all, and because of that, the learning never stops. Today, I know that the devil is in the details when it comes to understanding SaaS metrics. Finally, business models are perpetually changing, and digitally-enabled platforms like Uber and Peloton have recently thrown into question how we should measure technology company financials altogether. And even if you get the calculations right, knowing what to do with the data is a problem in its own right. Board members often disagree on which metrics are most important and provide mixed guidance to entrepreneurs. There are important variances in the way that each company calculates and perceives them. In other words, I thought I had it covered.įast-forward a few years, I can tell you that SaaS metrics are anything but straightforward. ![]() So, once I had found my favorite articles and formed my perspective, I stopped pushing myself to learn more on the subject. If you’ve done any Googling in this realm, you’ve probably reached the same conclusion I did: everything that could possibly be said already has been. ![]() That article remains highly relevant to this day.Īs I developed a deeper understanding of SaaS metrics, I read many blogs and frameworks on the web. David Skok published his widely-read SaaS Metrics 2.0 framework over a decade ago in 2008. I was also excited when it dawned on me that SaaS metrics don’t change much… as in almost never. No complex DCF or LBO models and only a handful of inputs to worry about? As a former investment banker, I considered this a win. Early in my career in growth equity, I was (willingly) pulled into the rabbit hole of SaaS metrics.Īs strange as it might sound, the change of pace was actually refreshing to me, as SaaS metrics felt relatively straightforward at the time. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |