Posted on July 3, 2024 by Dan McCarthy
Bookings, invoicing and revenue are three elements that allow SaaS companies to track, understand and forecast their business performance. Although there is a link between the three, as they make up the SaaS revenue cycle, they are not interchangeable terms. Each of these metrics gives businesses insights into different aspects of their financial health. As […]
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Posted on November 20, 2023 by John Lanahan
The cost of goods sold (COGS) and operating expenses (OpEx) metrics are vital to your SaaS business’s financial statements. Although both relate to expenditure, each has unique characteristics and purposes. First, the items included in computing COGS differ from those for OpEx. Second, the methods of calculating COGS and OpEx are different. Regardless of their […]
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Posted on August 10, 2023 by John Lanahan
Retaining customers is a critical aspect of business success, as it not only ensures recurring revenue but also contributes to brand loyalty, customer advocacy and overall growth. When it comes to measuring customer retention, two important metrics come into play — net retention rate and gross retention rate. While they both provide insights into customer […]
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Posted on January 19, 2023 by John Lanahan
When it comes to growth, every company is different. A venture-backed startup might want to scale and grow quickly in awareness of a large cash burn in order to quickly capture market share. Another business may want to create a sound cash-flow positive business that can support their lifestyle and family. And, other businesses can […]
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