SaaS B2B

What it shows

Churn rate shows how fast the business is leaking its customer base. Even moderate churn compounds dramatically — a 2% monthly churn rate means roughly 22% of the customer base disappears every year, requiring constant replacement just to stay flat.

What it shows

LTV shows how much a customer is ultimately worth and, when compared to CAC (LTV:CAC ratio), reveals whether the business model is economically viable — a ratio below 3:1 typically signals unit economics that need improvement before scaling.

What it shows

CAC shows how efficiently the business converts sales and marketing investment into new customers. Rising CAC without corresponding LTV growth signals the business is becoming less efficient at growth — a key investor concern at scale.

What it shows

Rule of 40 balances growth and profitability, showing whether the business is making an intelligent trade-off between the two. A score below 40 signals the business is neither growing fast enough nor generating sufficient profit to justify its cost structure.

What it shows

Pipeline coverage shows whether the sales team has enough opportunities to realistically hit their number given historical win rates. Too low signals a likely miss; too high may indicate inflated pipeline or poor data hygiene that overstates real opportunity.

What it shows

Attainment distribution reveals the health of the sales team. If fewer than 50% of reps hit quota, the issue is typically quota design or market conditions, not individual performance. Tracking distribution (not just average) is essential.

What it shows

Low adoption is the strongest leading indicator of churn — customers who don't use the product rarely renew it. High adoption is the strongest signal of expansion readiness, advocacy potential, and multi-year renewal confidence.

What it shows

ARR is the primary measure of a subscription business's scale and trajectory. Rising ARR signals growth; declining ARR signals contraction. It is the single most-watched number by investors and board members evaluating SaaS businesses.

What it shows

LVR is one of the most reliable leading indicators of future ARR because qualified leads today become pipeline in 30-90 days. Consistent positive LVR signals sustainable revenue growth; declining LVR warns of a future pipeline shortfall before it appears in actual revenue numbers.

What it shows

MRR reveals month-over-month health of the subscription base. Analysing MRR movements (new, expansion, contraction, churn) shows precisely where the business is growing and where it is leaking revenue — more granular than ARR alone.

What it shows

Win rate reveals overall sales effectiveness and competitive positioning. Tracking win rate by segment, rep, competitor, and deal size exposes exactly where the sales motion breaks down and whether competitive displacement or qualification is the root issue.

What it shows

A high DAU/MAU ratio (above 0.5) indicates the product is habit-forming and central to users' daily workflows. Low DAU/MAU signals occasional-use patterns — a churn risk indicator for productivity or workflow tools that should be embedded in daily routines.

What it shows

NRR above 100% means the existing customer base is growing without adding any new customers. It is the most scrutinised single metric by SaaS investors — the best indicator of product-market fit and long-term revenue sustainability.

What it shows

Magic Number above 0.75 suggests the business should invest more aggressively in S&M. Below 0.5 signals the go-to-market model is inefficient and should be optimised before scaling spend — a common due diligence metric in SaaS fundraising.

What it shows

Payback period shows how long the business is capital-negative on each new customer. Short payback (under 12 months) enables aggressive reinvestment in growth. Long payback (over 24 months) creates cash pressure and is a key fundraising efficiency concern.

What it shows

GDR shows the pure retention floor of the business — how much revenue would remain if no account ever expanded. It isolates churn and contraction from expansion, revealing the core product's retention strength independent of upsell performance.

What it shows

NPS serves as a leading indicator of churn and expansion. Accounts with low NPS are materially more likely to churn at renewal. Tracking NPS at the account level gives CS teams an early warning signal months before renewal to intervene proactively.

What it shows

ARPU trends reveal whether the business is moving upmarket (rising ARPU) or acquiring smaller, lower-value customers (declining ARPU). Segmenting ARPU by cohort, channel, or acquisition period identifies where the most valuable customers originate.