I am interviewing for a position at a SAAS company and I know they will probably ask for what I might consider good metrics to use.
Can I get some suggestions on some key financial and operating metrics?
Thank you!
What are some good financial and operating metrics for a SAAS company?
Answers
http://www.forentrepreneurs.com/saas-economics-1/
http://www.forbes.com/sites/jjcolao/2012/10/02/running-a-saas-business-answer-these-four-questions/
I can't add anything else to Doug's suggestions, other than to kick the assumptions pretty well and at appropriate intervals.
Go to www.forentrepreneurs.com. Great SaaS blog and some spreads you can download as samples. Big things to understand include customer acquisition cost (CAC), customer lifetime value, and time to recoup CAC--the challenge being that hitting the gas on growing a SaaS business can put you in real trouble if these fundamental metrics are out of whack. Good luck.
Lots of blogs out there about this especially David Skok's blog. At a minimum, I would be calculating MRR, ARR, CAC, ACS, and LTV.
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