The Remaining Performance Obligation (RPO) SaaS Metric
By

The Remaining Performance Obligation (RPO) reporting requirement arose from the adoption of ASC 606. This SaaS metric is defined as the sum of Deferred Revenue and Backlog. Deferred Revenue for SaaS companies is the contractual obligation to deliver the SaaS product for the period invoiced. The term Backlog refers to…Read More

Read More
Driving Success for Small to Middle-Market SaaS Companies
By

There are many ways to classify SaaS companies, but differentiating companies based upon who their customers are presents the best approach for measuring performance and driving success for SaaS businesses. This is because using a customer-centric definition highlights the key operational differences that drive strategic decision making at these businesses…Read More

Read More
Understanding Financial Reporting for SaaS Companies
By

Summary In a growing trend, companies increasingly seek to educate their employees on financial reporting and incorporate an understanding of financial metrics into the company‚Äôs culture. Over the past twenty some years, the adoption of systems and collection of internal data generated within companies has grown exponentially. Today more than…Read More

Read More
Optimizing Your Customer Lifetime Value Calculation: SaaS Companies
By

3 Methods for Calculating Customer Lifetime Value and Choosing the Right One for your SaaS Business Executive Summary The Customer Lifetime Value to Customer Acquisition Cost (CLTV / CAC) ratio is one of the most important SaaS metrics, but it is not designed to fit all companies. Calculating CLTV is…Read More

Read More