SaaS Metrics

Intermediate ๐Ÿš€ Startup / VC

Definition

The constellation of measurements VCs obsess over (MRR, ARR, CAC, LTV, churn) that supposedly predict success but often just delay the realization that your growth is unsustainable.

Example Usage

Our MRR was growing at 12% month-over-month and our CAC payback was 11 months, which meant we were 'crushing it' until it became apparent our $50 LTV customers weren't worth acquiring.

Origin

From Software-as-a-Service business model terminology

Fun Fact

Companies can have beautiful SaaS metrics and still fail spectacularly, suggesting that measuring something doesn't make it successful

Source: SaaS business model and venture capital terminology