SaaS Metrics That Matter

The starting point for understanding a SaaS business is revenue growth – the best proof of product-market fit.

Dollar Retention takes expansion revenue into account, and can be greater than 100% if expansion exceeds churned and contracted revenue.

Logo Retention: Logo Retention measures the percent of customers that stay active. As a result, Logo Retention is usually much lower than Dollar Retention.

MRR or ARR: Annual Recurring Revenue (ARR) is the standard for SaaS companies that sell annual subscription contracts, or Monthly Recurring Revenue (MRR) for those selling monthly subscriptions. If your company sells both, choose the metric that represents the majority of revenue. ARR is always 12 x MRR. Note the requirement that the contract is “recurring” (ongoing); one-time revenue, such as for


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