What are the most important metrics for SaaS?

In the early days, there are probably only 5 metrics that really matter:

  1. ARR
  2. ARR Growth Rate
  3. Burn Rate
  4. Probably, NPS (more here: I Was Wrong. NPS is A Great Core Metric. | SaaStr)
  5. And maybe … net revenue retention / churn.

All the rest, maybe don’t obsess too much until you are bigger. What matters in the early days is:

  • Do you have product-market fit? So you can grow fast enough …
  • And do your customers love you (so they will beget you more customers)?
  • And will you run out of money before you hit escape velocity?

The rest matters, but can be a distraction.

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Published on April 28, 2019

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