SaaS Dashboard Example – For annual contracts using ACV

This page is a supplement to the SaaS Metrics 2.0 blog post that provides a comprehensive study of the key metrics to understand and optimize a SaaS business. It is designed to be read in conjunction with that post.

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More detailed information on the definition of these different metrics can be found here.

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David Skok

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  • Alex

    Hi David,

    Thanks a lot for the post, it is really helpful.
    I have a question about your Starting and Ending ARR.
    Here, you are showing monthly values for annual recurring revenue.
    It seems that the ending ARR is the starting ARR of the next months which is true for monthly subscriptions.
    However, as this page is about annual subscriptions (as it is the case with the business I am working for), the changes to the ARR (new, expansion, churn) should be related to the (same month of the) previous year.
    Would you agree or is there some flaw in my thinking?

    Thanks for any comment, Alex

  • Hi Andy, I think I understand what you mean when you say the following: “the changes to the ARR (new, expansion, churn) should be related to the (same month of the) previous year.” If every contract you have always lasts exactly one year, then both ways of calculating should amount to the same thing. However in situations where you have some cancellations mid year, which can happen even with annual contracts, it makes sense to look at what ARR at the start of the month, and subtract out the lost contracts (including some that might have been cancelled before the year was up, where you plan to not continue charging the customer).

    I hope this answers your question.
    Best, David

    David Skok
    Matrix Partners

    *E*: dskok@matrixpartners.com
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    *A*: 101 Main Street, 17th Floor, Cambridge, MA 02142

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