Key SaaS Financial Metrics and Revenue Model Explained

In this Finance Fireside Chat, John Baule, FutureView Systems’ CEO and a seasoned SaaS CFO, is joined by Brian McGrath, FutureView Systems’ COO, to dive into the world of SaaS financials and SaaS metrics for growing companies. Having led finance and FP&A teams at numerous SaaS companies, including two IPOs, John and Brian provide a unique perspective on the key SaaS metrics like LTV, CAC, churn companies should focus on and how they can develop an analytical framework that measures the health of the business, informs decision makers and drives growth initiatives.
FutureView Systems provides FP&A software solutions and services created by Finance professionals, for Finance professionals. Transform your finance function and accelerate the capabilities of your operation quickly, with an implementation process that will have you up and running in weeks, not months. Learn how you can make a greater impact on strategies and drive company growth.
Visit our website to learn more about FutureView Systems:
bit.ly/356zTmk
0:00 - Intro
2:10 - Lifetime value (LTV)
8:27 - Customer acquisition costs (CAC) LTV:CAC
10:38 - SaaS CFO's analytical framework
16:12 - PE and VC firm metrics
17:50 - Churn rate
#finance #SaaS #SaaSmetrics #startup
Stay connected with us on LinkedIn:
bit.ly/2XUnspX (edited)

[@RobertRama]

This is a really great channel thank you. There isn't much out there on FP&A that isn't overly (or overtly) focused on systems rather than FP&A best practices. Having spent nearly a decade absorbing best FP&A practices from a blue chip company then becoming the last FP&A staff at a fledgling retail fashion house and now ultimately finding myself establishing FP&A best practices from the ground up at a startup environment, this content is invaluable to me. I would be curious to get your take on proper shared services allocation methodologies from a budgeting perspective. As an example, we have a dept that is responsible for maintaining our pool of online influencers. Other departments tap this department's pool of influencers for various marketing activations thereby earning the company advertising revenue. These departments are given the revenue credit for these activations. But how would the department actually responsible for maintaining the talent assets (shared resource) be credited for this revenue to determine what an appropriate budget ought to be? Keep up the great work!!

[@futureviewsystems]

Hi Robert , we agree and try to provide insights into the world of FP&A beyond traditional methods. Sounds like you have a very specific use case for your department revenue and budgeting, which we would be happy to talk with you in more detail about. Please contact us at [e-mail] any time!

[@assetmanagementservicesand2265]

Having a consistent LTV stake in the ground is definitely beneficial for trends in both early stage SaaS firms and for investors. Unfortunately, like valuations, metrics are most often self-serving and guide perception; which with enough marketing can become reality. What to do? An independent arbitrator?

[@futureviewsystems]

It's a topic that could be debated endlessly, but the bottom line is your metrics should inform decision makers and it's what you do strategically with the metrics that makes all of the difference.