SaaS Companies and the Critical KPIs

Software as a Service (SaaS) companies have to keep an eye on the usual business and financial metrics, but there are some Key Performance Indicators (KPIs) that are uniquely essential. For a long time venture capitalists encouraged a mindset of growth at any cost, but increasingly the bottom line and long-term sustainability are levers for important decisions. The health of the company, its strategic position and profitability potential, and its ability to attract investors rely on knowing some magical acronyms: CaC, LTV, and Revenue Churn from ARR or MRR.

If you’re keeping score – and you should be – that’s a lot of letters that unlock important concepts.

Today Shyam Desigan, Managing Director at ProCFO Partners and seasoned founder and financial expert for SaaS companies unpacks why Customer Acquisition Costs, Lifetime Value, and Annual Recurring Revenue or Monthly Recurring Revenue are the top-of-list KPIs for SaaS leaders to focus on and adjust to. Growth and profitability depend on it.