Have you ever seen a public company restate its ARR ? In episode #296, Ben Murray dives into a real-world example from the London Stock Exchange—Celebrus Technologies—and unpacks why and how they updated their Annual Recurring Revenue (ARR) definition. Key Highlights: Financial restatements ≠ just GAAP: ARR, a non-GAAP metric, is increasingly being scrutinized as pricing and revenue models evolve. Case Study: Celebrus Technologies Old ARR definition: Included license revenue, cloud, support &...
Jul 10, 2025•4 min
In episode #295 of SaaS Metrics School , Ben Murray breaks down how to benchmark your CAC Payback Period accurately—and why generic social media posts can lead you astray. Too many founders rely on simplified benchmark numbers, such as “12 months or less is good,” without understanding the nuances behind the data. Ben explains why ACV segmentation is critical, how top-quartile companies perform across different contract sizes, and where you can obtain customized benchmarks for your SaaS business...
Jul 07, 2025•5 min
In episode #294 of SaaS Metrics School , Ben Murray dives into one of the most important metrics for SaaS operators and investors: CAC Payback Period —with a focus on adapting it for usage-based pricing models . Whether you’re B2B, B2C, or AI-focused, CAC Payback is a must-have metric when you're investing heavily in go-to-market strategies. But how do you accurately calculate it when your business has subscription + usage revenue ? Ben walks through: The standard CAC Payback formula and why it ...
Jul 05, 2025•4 min
In episode #293, Ben dives into Contracted Annual Recurring Revenue (CARR) —a once obscure metric that's now becoming a standard in financial dashboards and valuation discussions . Ben explains how CARR differs from ARR, breaks down the formula, and shares how it’s being used in real-world enterprise SaaS settings. He also shares why defining ARR is more complicated than it seems—especially with variable and usage-based revenue models. Key Topics Covered What is CARR (Contracted ARR) and how it ...
Jul 02, 2025•4 min
Gross profit is a core metric in SaaS—and 80% is the benchmark often thrown around. But is that still realistic in today’s landscape? In episode #292 of SaaS Metric School , Ben Murray walks through real benchmarking data from Ray Rike’s benchmarks at Benchmarkit.ai and explains how gross profit should evolve as your business scales. He also dives into how to set up your SaaS P&L correctly and what to include in COGS vs. OpEx. What You’ll Learn: What gross profit benchmarks actually look lik...
Jun 27, 2025•3 min
In episode #291 of SaaS Metrics School , Ben Murray breaks down one of the most important—and often debated—questions in SaaS finance: 💰 How much should we invest in sales and marketing this year? Ben explores how to frame your sales and marketing spend using two key concepts: Sales & Marketing as a % of Revenue (OpEx Profile) Cost of ARR (Net New Annual Recurring Revenue Cost) You'll hear current SaaS benchmarks from Ray Rike’s latest data set, which shows how spending evolves from early-s...
Jun 26, 2025•4 min
How much R&D spend is too much—or not enough ? In episode #290 of SaaS Metric School , Ben Murray breaks down R&D spend benchmarks by company revenue size, based on data from Ray Rike’s Benchmarkit.ai. Whether you’re a founder, CFO, CTO, or finance leader, understanding how your R&D investment compares is crucial for building operational leverage and scaling sustainably. What You’ll Learn: Why R&D spend can feel like a black box—especially for CFOs Top vs. lean R&D spending b...
Jun 21, 2025•3 min
In episode #289, Ben dives into one of his favorite SaaS metrics: Cost of ARR (Annual Recurring Revenue), also known as the SaaS CAC Ratio. This powerful go-to-market metric helps operators and investors evaluate how efficiently a company acquires recurring revenue. Ben breaks down how to calculate it, segment it, and benchmark it using the latest data from Ray Rike at Benchmarkit.ai. What You’ll Learn: What is Cost of ARR and why it matters for SaaS operators and investors The formula How to ca...
Jun 19, 2025•5 min
In episode #288 of SaaS Metrics School , Ben Murray tackles a frequent mistake SaaS operators make when calculating Lifetime Value (LTV) — treating it as an aggregate rather than the point-in-time metric . Ben breaks down the correct formula, shares how to align it with gross revenue retention , and explains when LTV (and LTV to CAC) should be used SaaS businesses. What You’ll Learn: Why LTV is a point-in-time estimate , not a company-wide average The correct formula for LTV in SaaS : Cohort ARP...
Jun 17, 2025•5 min
In this episode of SaaS Metric School , Ben Murray dives deep into the often-confusing world of Subscription ARR (Annual Recurring Revenue) . After analyzing over 160 public tech company filings , Ben shares the three most common ways companies define and calculate ARR—and why these differences matter for SaaS operators, investors, and finance teams. If you’ve ever struggled with benchmarking ARR or explaining it to stakeholders, this episode will give you clarity and context. What You’ll Learn ...
Jun 15, 2025•4 min
In episode #286 of SaaS Metrics School , Ben Murray breaks down one of the most common — and costly — mistakes SaaS founders and CFOs make when building their Monthly Recurring Revenue (MRR) schedules: netting contraction and expansion . This seemingly small error can break your ability to calculate key SaaS metrics like Gross Revenue Retention (GRR) and Net Revenue Retention (NRR) . What You’ll Learn: The essential structure of an accurate MRR waterfall schedule Why separating expansion, contra...
Jun 13, 2025•3 min
In episode #285 of SaaS Metrics School , Ben Murray dives into one of the most overlooked levers in SaaS financial performance— G&A (General & Administrative) spend . How much should you really be spending on back office functions like finance, HR, legal, and IT? Using data from Benchmarkit.AI, Ben walks through G&A as a percent of revenue across ARR stages—from startups under $1M to companies exceeding $100M. He also explains how operating leverage is created through back office eff...
Jun 11, 2025•4 min
In episode #284, let’s break down AI ARR. As artificial intelligence transforms SaaS business models, a new metric is gaining traction: AI ARR (Artificial Intelligence Annual Recurring Revenue). But what exactly is AI ARR, how do public SaaS companies define it, and why should private SaaS operators care? In this episode, Ben Murray dives deep into how companies like Verint Systems are reporting AI ARR in their earnings and press releases. Ben breaks down the nuances of these definitions, the im...
Jun 06, 2025•5 min
In episode #283, I address some recent conversations with SaaS founders who implemented my SaaS P&L format. In one instance, it was key to a successful exit. - How early should you implement the SaaS P&L - Make your data easily consumable for potential acquirors How to Structure Your SaaS P&L: https://www.thesaascfo.com/how-to-structure-your-saas-pl/ Join our SaaS community. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout Subscribe to Ben's SaaS newsletter: https://mailchi.mp...
Jun 05, 2025•2 min
In episode #282, I cover some research I did for the SaaS Metrics Summit in NYC. Are public tech companies disclosing how they define ARR? - Is ARR dead, or is it just evolving? Join our SaaS community. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout Subscribe to Ben's SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page...
May 20, 2025•3 min
In episode #281, I cover my top three metrics to determine if you have a scaling problem. This is a follow-up to episode #280, the growing versus scaling problem. - My foundational three metrics - What’s the difference between growing and scaling? Join our SaaS community. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout Subscribe to Ben's SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page Greg's podcast: https://podcasts.apple.com/us/podcast/profitability-p...
May 07, 2025•4 min
In episode #280, I just listened to a business podcast and must share the concept of growing versus scaling. This is such a critical concept for SaaS operators to understand. - Growing - Scaling - Metrics to measure Join our SaaS community. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout Subscribe to Ben's SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page Greg's podcast: https://podcasts.apple.com/us/podcast/profitability-playbook-the-simple-numbers-podca...
May 06, 2025•4 min
In episode #279, I’m tackling the metrics to track in your SaaS journey. One you pass 5M in ARR , a SaaS CFO can do a lot with your operational and financial data. - Use my 5 Pillar SaaS Metrics Framework - Pillar 1 Growth - Pillar 2 Retention - Pillar 3 Margins - Pillar 4 Financia Profile - Pillar 5 Efficiency - Should we segment? Retention Bootcamp: https://www.thesaasacademy.com/offers/Q2uE6U2B/checkout 5 Pillar SaaS Metrics Framework: https://www.thesaascfo.com/scaling-with-confidence-the-ul...
Apr 30, 2025•3 min
In episode #278, I’m tackling the metrics to track in your SaaS journey. One you reach the 3-5M ARR range, things can get really interesting with your financial profile and metrics. - Use my 5 Pillar SaaS Metrics Framework - Pillar 1 Growth - Pillar 2 Retention - Pillar 3 Margins - Pillar 4 Financial Profile Retention Bootcamp: https://www.thesaasacademy.com/offers/Q2uE6U2B/checkout 5 Pillar SaaS Metrics Framework: https://www.thesaascfo.com/scaling-with-confidence-the-ultimate-saas-metrics-play...
Apr 29, 2025•4 min
In episode #277, I’m tackling the metrics to track in your SaaS journey. Things start to take shape in the 1-3M ARR range. - Use my 5 Pillar SaaS Metrics Framework - Pillar 1 Growth - Pillar 2 Retention - Are we concerned about our financial profile yet? Retention Bootcamp: https://www.thesaasacademy.com/offers/Q2uE6U2B/checkout 5 Pillar SaaS Metrics Framework: https://www.thesaascfo.com/scaling-with-confidence-the-ultimate-saas-metrics-playbook/...
Apr 25, 2025•4 min
In episode #276, I’m tackling a subscriber question who is just starting their SaaS journey. There are definitely some building blocks to put into place so you have no regrets later. - Selecting your accounting software - Who does the accounting? - Building your accounting foundation - Cash or accrual accounting - Tracking your bookings - What metrics to track? Be in the know! Join our SaaS community. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout Subscribe to Ben's SaaS newsletter: htt...
Apr 24, 2025•6 min
In episode #275, I’m sharing revenue insights from helping a lot of SaaS companies with their finances. You must clearly define your major revenue categories. Next, you must define your type of variable revenue. - The 6 major revenue categories - The types of variable revenue - Why this matters Be in the know! Join our SaaS community. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout Subscribe to Ben's SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page...
Apr 12, 2025•4 min
In episode #274, I’m sharing some insight from a Mark Roberge talk in Tempe, AZ at PHX FWD. The software business is undergoing another major shift. In the 80/90’s it started with on-premise software, then ASP, then SaaS, and now AI. - Business model changes - What if agentic AI entered your space? - Siebel Systems - from top player to SaaS laggard Be in the know! Join our SaaS community. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout Subscribe to Ben's SaaS newsletter: https://mailchi....
Apr 08, 2025•5 min
In episode #273, I’m sharing some insight from a Mark Roberge talk in Tempe, AZ at PHX FWD. Should we believe the ARR per FTE hype? - Is my SaaS being left behind? - Should we believe the hype? - Current benchmarks for ARR per FTE Be in the know! Join our SaaS community. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
Apr 06, 2025•5 min
In episode #272, I address poor financial close practices. You must close your books on time to understand economic performance. - What day should your books be closed? - Insource or outsource accounting? - It’s not just cash performance Be in the know! Join our SaaS community. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
Mar 26, 2025•3 min
In episode #271, I address a student question from TheSaaSAcademy.com. And that’s billing pauses. How should we handle this with our revenue retention calculations? - Let’s define a billing pause - Impact on your MRR schedule - Impact on GRR and NRR - Unpredictable revenue Be in the know! Join our SaaS community. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
Mar 13, 2025•4 min
In episode #270, I address the methods of calculating your retention. Contrary to those social media posts, cohort retention is NOT the only way to calculate retention. I’ll tell you why. - The 3 retention calculations - What is cohort retention - What is aggregate retention - Segmentation Be in the know! Join our SaaS community. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout...
Feb 25, 2025•6 min
In episode #269, I address a question from a recent conversation with a founder who was starting a software/hardware play. You must understand your business model and the type of company that you are building. - Am I Software or Hardware? - What is my business model? - Have you defined your SaaS P&L? - What about people-powered revenue? Be in the know! Join our SaaS community. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout...
Feb 20, 2025•4 min
In episode #268, I address a debate that arose a recent SaaS CEO and CFO dinner in San Francisco. - What is Rev Ops? - CFO or CRO? Be in the know! Join our SaaS community. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
Feb 19, 2025•6 min
In episode #267, I address the coveted MRR schedule. Done wrong, it causes a ton of headaches and can derail due diligence. - What is the MRR schedule? - Where do you source the data? - What systems house this data? Have you joined our SaaS community? https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
Feb 18, 2025•4 min
