There are hundreds of SaaS metrics, but which ones truly matter for SaaS leaders who want to scale, raise capital, and maximize company valuation? In episode #313, Ben Murray breaks down the five essential metrics every SaaS executive must understand — whether you’re a founder, CFO, or operator.
From bookings to retention, gross profit, OpEx, and the ROSE efficiency metric, you’ll learn how to read your SaaS P&L like a top operator, and why these metrics are critical to driving durable growth, improving investor metrics, and strengthening your business model.
What You’ll Learn
- Bookings – Signed contracts for ARR commitments, the fuel of your revenue engine.
- Retention – Gross revenue retention, net revenue retention, and customer retention are the ultimate health checks for recurring revenue.
- Margins (Gross Profit) – Why accurate COGS vs. OpEx separation matters for forecasting, profitability, and valuation.
- OpEx Profile – How much you should invest in R&D, sales, marketing, and G&A as a percentage of revenue.
- ROSE Metric (Return on SaaS Employees) – A powerful measure of organizational efficiency and path to profitability, stronger than revenue per FTE.
Why These Metrics Matter
- Finance & Accounting: They form the backbone of your SaaS P&L and cash flow forecasting.
- Investor Metrics: Investors use these to evaluate efficiency, scalability, and risk.
- Valuation: Strong retention, margins, and efficiency drive higher SaaS valuations.
- Business Leaders: Understanding these numbers enables smarter decisions at both the departmental and company levels.
Resources Mentioned
Free Webinar – Deep dive into these five metrics, plus tips, frameworks, and pro insights: https://www.thesaasacademy.com/pl/2148701264
Quote from Ben
“Every SaaS leader doesn’t need to calculate these metrics themselves — but they must understand them. These numbers tell the story of your business.”
