SaaS Metrics Library — Page 3

The Number of Customers is a fundamental metric that quantifies the total count of individuals or companies who have purchased a product or subscribed to a service.

Days Sales Outstanding (DSO) is a financial metric that measures the average number of days it takes for a company to collect payment from its customers after a sale has been made.

DPO measures the average number of days it takes for a company to pay its suppliers or vendors after receiving goods or services.

Early to Late Stage Pipeline Conversion Rate measures the effectiveness of converting leads or opportunities from the early stages of the sales pipeline to the later stages.

According to the efficiency rule, a healthy SaaS company will have a positive ratio of net new ARR to cash burn.

Expansion Bookings refer to the bookings generated from existing customers who are expanding usage, upgrading subscriptions or purchasing additional features.

FCF Margin measures the percentage of revenue a company generates as free cash flow, expressing the company’s ability to convert its sales into cash after covering OpEx and CapEx.

Free Cash Flow represents the amount of cash generated by a company’s operations that is available for distribution to investors, debt reduction, or reinvestment in the business.

G&A Expenses as % of Revenue indicates the proportion of a company’s total revenue allocated to general operating and administrative costs.

Gross Logo Retention Rate is a metric used to measure the ability of a company to retain customer accounts over a specific period.

Gross margin is a simple way to measure how much money a business keeps after covering the direct costs of making or delivering its product or service.

Gross Profit represents the amount of money a company retains after deducting the direct costs associated with producing or purchasing the goods it sells.