Driving Success for Small to Middle-Market SaaS Companies
By Eric Mersch
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 MoreUnderstanding Financial Reporting for SaaS Companies
By Eric Mersch
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’s 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 MoreOptimizing Your Customer Lifetime Value Calculation: SaaS Companies
By Eric Mersch
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 MoreCalculating Gross Margin for Enterprise SaaS Businesses
By Eric Mersch
In my experience, many Enterprise SaaS companies struggle with reporting gross margin due to lack of guidance on this topic. FASB refers to gross profit as the difference between revenue and cost of revenue. SEC Regulation S-K provides more detail, defining gross profit as “net sales less costs and expenses…Read More
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