SaaS Metrics Library — Page 7

The Rule of 40 states that a healthy SaaS company should have a combined growth rate and profitability margin that adds up to at least 40%.

SaaS Quick Ratio compares a company’s revenue inflows (new and expansion) to its revenue outflows (churn and contraction).

Sales and Marketing Expenses as a Percentage of Revenue indicates the proportion of a company’s total revenue allocated to sales and marketing activities.

Sales CAC measures the cost incurred by the sales team to acquire a new customer.

Sales Headcount as a % of Total Headcount measures the proportion of employees dedicated to sales roles relative to the entire workforce.

SALs represent leads that have progressed through the initial MQL period and have been further evaluated and accepted by the sales team as viable sales opportunities.

SQLs refer to leads that have undergone a discovery and qualification by the sales team and have been deemed ready for direct sales engagement.

Total bookings refer to the total value of customer orders or contracts closed within a specific period.

TCV measures the total anticipated revenue from a contract over its entire duration, including services and subscription fees.

Total Revenue represents the overall income generated by a business from its core operations.

Usage by Customer measures the level and frequency of a customer’s interaction or engagement with a product, service, or platform.

Win Rate measures the percentage of successfully closed deals relative to the total number of opportunities closed – either won or loss – during a specific period.