Why Traditional Metrics Aren't Enough for SaaS

Unlike traditional businesses focused on one-time sales and cost of goods sold, 

SaaS thrives on recurring revenue, customer retention, and the long-term value of a customer relationship. You need metrics that reveal:

• How effectively you acquire customers.
• How long customers stay and how much revenue they generate over time.
• The cost of serving those customers.
• The predictability and quality of your revenue stream.
• Your efficiency in spending for growth.

For your SaaS company, a Fractional CFO provides the high-level financial leadership needed to accurately track, deeply analyze, and strategically optimize critical metrics. They translate complex data into actionable insights, enabling founders to make informed decisions, attract investment, and build a truly valuable, scalable business. Investing in a Fractional CFO is investing in clarity, control, and the confidence to navigate the fast-paced SaaS landscape successfully.

Read more on our website!

How can we help you? Phrases we regularly hear from our clients include, “You meet me where I am, not where you want me to be”, “You put me in control of my job”, “For the first time, I have real numbers I can act on”, and “You gave me what my board wants”.

We elevate financial strategy to overcome challenges and drive company value for pre-seed to Series B SaaS companies. Founded in 2020, our team has over 100 years of combined experience in building B2B SaaS financial cores for companies. Contact us today to find out how we can help you manage and understand your SaaS KPIs. 

The Critical SaaS KPIs

Every business is different, and everybody has their favorite metrics that they want to focus on at different times. But some SaaS metrics make more sense based on the level of maturity of your business.

A Fractional CFO can help you identify, define, and rigorously track the KPIs most relevant to your specific business stage and goals. Here are some of the most critical:

1. ARR/MRR (Annual/Monthly Recurring Revenue): The bedrock of SaaS. This tracks the predictable revenue from subscriptions. A CFO ensures this is calculated accurately (excluding one-time fees) and segmented by new business, expansion, churn, and downgrades to understand growth drivers.
2. Churn Rate (Customer & Revenue): Measures the percentage of customers or revenue lost over a period.3 High churn is a growth killer.4 A CFO helps analyze why churn is happening and its impact on future revenue.5
3. CAC (Customer Acquisition Cost): The total sales and marketing expenses divided by the number of new customers acquired in the same period.6 Understanding CAC is crucial for evaluating the efficiency of your go-to-market strategy.7 A CFO ensures all relevant costs are included and helps calculate CAC by channel or segment.

Read more on our website!

How can we help you? Phrases we regularly hear from our clients include, “You meet me where I am, not where you want me to be”, “You put me in control of my job”, “For the first time, I have real numbers I can act on”, and “You gave me what my board wants”.

We elevate financial strategy to overcome challenges and drive company value for pre-seed to Series B SaaS companies. Founded in 2020, our team has over 100 years of combined experience in building B2B SaaS financial cores for companies. Contact us today to find out how we can help you manage and understand your SaaS KPIs.