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.

You can download the below spreadsheet here (see Annual Contracts tab).



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
    *T*: +1-617494-1223
    *A*: 101 Main Street, 17th Floor, Cambridge, MA 02142

    *Blog*: ForEntrepreneurs.com
    *Twitter*: @BostonVC

  • Ford Goodman

    David, very helpful, thank you. I am a little confused by the Customer Counts versus the revenues in this example. If your ARPA MRR across the installed base is $514 in January, and you have 808 accounts, the revenue should be about $415K. But the worksheet shows almost exactly 12X that at $4.987M. Is that an annual number? Aren’t the Summary Financials for each month just for that month?

    I am either missing something fundamental (most likely) or expecting $4.987M in revenue from 808 customers to each generate $6,172 in Avg MRR and $74,064 in ACV over their annual contracts. Can you help square me away?

  • Drew Arnold

    I’m sure this is a silly question, so my apologies in advance. However, were is the link to download the ACV version of this calculator in the above blog post? I got to this post from this one (http://www.forentrepreneurs.com/saas-metrics-2/) that said the ACV version of the calc was on this page. I am not seeing the download link.

  • Hi Drew, thanks for your question and apologies for the confusion. I’ve added a download link with the spreadsheet at the top of this post where you can find the ACV version under the ‘Annual Contracts’ tab.

    Best,
    David

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