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4 Types of Financial Statements Founders Need to Understand
This post was written by Justin McLoughlin. Justin is the founder & President of airCFO, a finance & accounting services startup built for startups. He spent the early years of…
Topic
Metrics & KPIs
The Ultimate Customer Retention Cohort Analysis Template for SaaS
Our Customer Retention Cohort Analysis Google Sheet Template As startups scale, iterate, innovate and create processes, we would hope to see them not only acquiring customers at a faster pace,…
How We Used Product Qualified Leads to Get Started with Product-Led Growth
Why Product-Led Growth? According to OpenView Labs, Product-Led Growth is “a go-to-market strategy where the product is central to how these companies acquire, convert, expand and retain users. This allows…
SaaS Metrics Benchmarks
The SaaS industry has experienced rapid growth in recent years. With industry expansion comes expansion in all facets of the market. More data, resources, blog posts, thought leaders, ideas, than ever before. While there are great resources being shared on a daily basis there are also equally poor resources being shared on a daily basis. So do how you filter the signal from the noise? Why do SaaS Metrics matter and what should you be tracking? SaaS companies are inherently driven by…
Marketing Scores: Measuring Your Marketing Efficiency
The job of a marketer is to assist a sales team in generating new leads and in turn generating new customers. In order to measure the effectiveness in closing new…
Current Ratio and Liquidity Ratio
As we’ve discussed before calculating your quick ratio is an easy formula to understand how efficiently your company can grow. The higher the quick ratio the more efficient a company can grow. An example quick ratio formula can be found below: Quick Ratio Formula = (New MRR + Expansion MRR) / (Contraction MRR + Churned MRR) In addition to the quick formula, we see many startups track two other financial ratios: current ratio and liquidity ratio. Tracking different financial ratios can be…
Quick Ratio Formula
The SaaS Quick Ratio is a simple formula used to measure the efficiency of your SaaS company’s growth. A quick ratio gives a company a reliable source to predict how they can grow revenue with churn in mind. In short, the quick ratio formula is new MRR by lost MRR over a period of time. The higher your quick ratio the stronger the growth. The quick ratio formula can be found below: Quick Ratio Formula = (New MRR + Expansion MRR) /…
Top Down vs Bottoms Up Projections
Financial projections are essential for any business, even if it’s not yet generating revenue. A variety of specific methods exist for performing this task, but they can generally be classified…
Making Changes to Your Cash Flow Projections
No founder has ever created a financial plan and cash flow projections they didn’t like. But what happens when the countless hours spent sifting through data, building models, and pitching…
Pull Levers in your Sales Funnel with Product Qualified Leads
Product Qualified Leads (PQLs) have become a major trend in SaaS companies over the last couple of years. Why the shift to the new framework? I have two thoughts. 1)…