--- name: saas-metrics description: "SaaS business metrics analysis - MRR, ARR, Churn, LTV, CAC, cohort analysis, and investor reporting" version: "1.0.0" author: claude-office-skills license: MIT category: finance tags: - saas - metrics - analytics - mrr - churn - ltv department: Finance models: recommended: - claude-sonnet-4 - claude-opus-4 compatible: - gpt-4 - gpt-4o mcp: server: analytics-mcp tools: - stripe_metrics - chargebee_data - mixpanel_cohorts - spreadsheet_analysis capabilities: - mrr_calculation - churn_analysis - cohort_tracking - ltv_calculation - investor_reporting languages: - en - zh related_skills: - financial-modeling - data-analysis - dcf-valuation - chart-designer --- # SaaS Metrics Comprehensive SaaS metrics analysis covering MRR, ARR, Churn, LTV, CAC, cohort analysis, and investor reporting. Essential for SaaS founders, finance teams, and investors. ## Overview This skill enables: - Revenue metrics calculation (MRR, ARR, NRR) - Churn and retention analysis - Unit economics (LTV, CAC, LTV:CAC) - Cohort analysis and forecasting - Investor-ready reporting --- ## Core Metrics Framework ### 1. Revenue Metrics ``` ┌─────────────────────────────────────────────────────────────┐ │ MRR WATERFALL │ ├─────────────────────────────────────────────────────────────┤ │ │ │ Starting MRR $100,000 │ │ + New MRR (new customers) +$15,000 │ │ + Expansion MRR (upgrades) +$8,000 │ │ + Reactivation MRR +$2,000 │ │ - Contraction MRR (downgrades) -$3,000 │ │ - Churn MRR (cancellations) -$7,000 │ │ ───────────────────────────────────────────── │ │ = Ending MRR $115,000 │ │ │ │ Net New MRR = $15,000 │ │ MRR Growth Rate = 15% │ │ │ └─────────────────────────────────────────────────────────────┘ ``` **Calculations**: ```yaml mrr_metrics: # Monthly Recurring Revenue MRR: sum(all_active_subscriptions.monthly_value) # Annual Recurring Revenue ARR: MRR × 12 # MRR Components new_mrr: sum(new_subscriptions_this_month) expansion_mrr: sum(upgrades_this_month) contraction_mrr: sum(downgrades_this_month) churn_mrr: sum(cancelled_subscriptions_mrr) reactivation_mrr: sum(reactivated_subscriptions) # Net New MRR net_new_mrr: new_mrr + expansion_mrr + reactivation_mrr - contraction_mrr - churn_mrr # Growth Rates mrr_growth_rate: (ending_mrr - starting_mrr) / starting_mrr × 100 mom_growth: (current_mrr - previous_mrr) / previous_mrr × 100 ``` --- ### 2. Churn Metrics ```yaml churn_metrics: # Logo Churn (Customer Count) logo_churn_rate: formula: customers_lost / customers_start_of_period × 100 benchmark: <5% monthly for SMB, <2% for Enterprise # Revenue Churn (MRR) gross_revenue_churn: formula: churned_mrr / starting_mrr × 100 benchmark: <3% monthly # Net Revenue Churn (includes expansion) net_revenue_churn: formula: (churned_mrr - expansion_mrr) / starting_mrr × 100 target: negative (net expansion) # Net Revenue Retention (NRR) nrr: formula: (starting_mrr - churn + expansion) / starting_mrr × 100 benchmark: good: 100-110% great: 110-120% best_in_class: >120% ``` **Churn Analysis Template**: ```markdown ## Churn Analysis - {Month} ### Summary | Metric | Value | Benchmark | Status | |--------|-------|-----------|--------| | Logo Churn | 3.2% | <5% | ✅ | | Gross Revenue Churn | 2.8% | <3% | ✅ | | Net Revenue Retention | 108% | >100% | ✅ | ### Churn Breakdown | Reason | Customers | MRR Lost | % of Total | |--------|-----------|----------|------------| | Price | 5 | $2,500 | 35% | | Competitor | 3 | $1,800 | 25% | | No longer needed | 4 | $1,500 | 21% | | Product issues | 2 | $800 | 11% | | Other | 2 | $600 | 8% | ### Cohort Performance - Q1 2025 cohort: 95% retention at month 6 - Q4 2024 cohort: 88% retention at month 9 - Enterprise segment: 97% retention (best) ``` --- ### 3. Unit Economics ``` ┌─────────────────────────────────────────────────────────────┐ │ UNIT ECONOMICS │ ├─────────────────────────────────────────────────────────────┤ │ │ │ Customer Lifetime Value (LTV) │ │ ──────────────────────────── │ │ ARPU × Gross Margin % │ │ ─────────────────────── = LTV │ │ Churn Rate │ │ │ │ Example: │ │ $100 ARPU × 80% margin / 3% churn = $2,667 LTV │ │ │ │ ═══════════════════════════════════════════════════════ │ │ │ │ Customer Acquisition Cost (CAC) │ │ ──────────────────────────────── │ │ Sales & Marketing Spend │ │ ─────────────────────────── = CAC │ │ New Customers Acquired │ │ │ │ Example: │ │ $50,000 S&M / 50 customers = $1,000 CAC │ │ │ │ ═══════════════════════════════════════════════════════ │ │ │ │ LTV:CAC Ratio = $2,667 / $1,000 = 2.67x │ │ CAC Payback = $1,000 / ($100 × 80%) = 12.5 months │ │ │ └─────────────────────────────────────────────────────────────┘ ``` **Benchmarks**: ```yaml unit_economics_benchmarks: ltv_cac_ratio: poor: <1x acceptable: 1-2x good: 2-3x great: 3-5x excellent: >5x cac_payback_months: enterprise: <18 mid_market: <12 smb: <6 consumer: <3 gross_margin: saas_typical: 70-85% infrastructure: 50-70% services_heavy: 40-60% ``` --- ### 4. Cohort Analysis ```yaml cohort_analysis: # Define cohorts by signup month cohort_definition: signup_month # Track retention over time retention_matrix: columns: [Month_0, Month_1, Month_2, ..., Month_12] rows: [Jan_cohort, Feb_cohort, Mar_cohort, ...] values: active_customers / initial_customers × 100 # Track revenue retention revenue_cohort: values: current_mrr / initial_mrr × 100 # Cohort LTV calculation cohort_ltv: formula: sum(all_revenue_from_cohort) / initial_cohort_size ``` **Cohort Table Example**: ``` Retention by Cohort (% of customers still active) Month 0 Month 1 Month 2 Month 3 Month 6 Month 12 Jan '25 100% 92% 87% 84% 78% 65% Feb '25 100% 94% 89% 86% 80% - Mar '25 100% 93% 88% 85% - - Apr '25 100% 95% 90% - - - May '25 100% 94% - - - - Jun '25 100% - - - - - Average 100% 94% 89% 85% 79% 65% ``` --- ## Quick Ratio ```yaml quick_ratio: formula: (new_mrr + expansion_mrr) / (contraction_mrr + churn_mrr) interpretation: "<1": Shrinking (losing more than gaining) "1-2": Sustainable growth "2-4": Good growth efficiency ">4": Excellent (hypergrowth potential) example: new_mrr: 15000 expansion_mrr: 8000 contraction_mrr: 3000 churn_mrr: 7000 quick_ratio: (15000 + 8000) / (3000 + 7000) = 2.3 ``` --- ## Investor Reporting Template ### Monthly Metrics Dashboard ```markdown # {Company} - Monthly Metrics Report ## {Month Year} ### Key Metrics Summary | Metric | Current | Previous | Change | Benchmark | |--------|---------|----------|--------|-----------| | ARR | $1.38M | $1.20M | +15% | - | | MRR | $115K | $100K | +15% | - | | Net New MRR | $15K | $12K | +25% | - | | NRR | 108% | 105% | +3pp | >100% ✅ | | Logo Churn | 3.2% | 3.5% | -0.3pp | <5% ✅ | | LTV:CAC | 2.7x | 2.5x | +0.2x | >3x ⚠️ | | CAC Payback | 12.5mo | 13mo | -0.5mo | <12mo ⚠️ | ### MRR Waterfall ``` Starting MRR: $100,000 + New: +$15,000 (12 customers) + Expansion: +$8,000 (25 upgrades) + Reactivation: +$2,000 (5 returns) - Contraction: -$3,000 (15 downgrades) - Churn: -$7,000 (18 cancellations) ═════════════════════════════ Ending MRR: $115,000 ``` ### Customer Metrics | Segment | Customers | MRR | ARPU | Churn | |---------|-----------|-----|------|-------| | Enterprise | 45 | $45K | $1,000 | 1.5% | | Mid-Market | 120 | $36K | $300 | 2.8% | | SMB | 350 | $34K | $97 | 4.5% | | **Total** | **515** | **$115K** | **$223** | **3.2%** | ### Runway & Burn - Cash Balance: $2.5M - Monthly Burn: $85K - Runway: 29 months - Revenue/Burn Ratio: 1.35x ### Goals vs Actuals | Goal | Target | Actual | Status | |------|--------|--------|--------| | New Customers | 15 | 12 | 🔴 80% | | Net New MRR | $12K | $15K | 🟢 125% | | NRR | 105% | 108% | 🟢 103% | | CAC Payback | 12mo | 12.5mo | 🟡 96% | ### Next Month Outlook - Pipeline: $45K in qualified opportunities - Expected closes: 8-10 customers - Projected MRR: $125-130K - Key risks: Enterprise deal slip, holiday slowdown ``` --- ## Forecasting Model ### Bottom-Up Revenue Forecast ```yaml forecast_model: # Starting point base_mrr: 115000 # Growth assumptions assumptions: new_customers_monthly: 15 avg_new_customer_mrr: 1250 expansion_rate: 2% # of existing MRR contraction_rate: 0.5% logo_churn_rate: 3% # Monthly calculation monthly_forecast: new_mrr: new_customers × avg_mrr expansion_mrr: existing_mrr × expansion_rate contraction_mrr: existing_mrr × contraction_rate churn_mrr: existing_mrr × churn_rate ending_mrr: | starting_mrr + new_mrr + expansion_mrr - contraction_mrr - churn_mrr ``` ### 12-Month Projection ``` Month Starting New Expansion Churn Ending Growth Jan $115,000 $18,750 $2,300 $3,450 $132,600 15.3% Feb $132,600 $18,750 $2,652 $3,978 $150,024 13.1% Mar $150,024 $18,750 $3,000 $4,501 $167,274 11.5% ... Dec $285,000 $18,750 $5,700 $8,550 $300,900 5.6% Annual Summary: - Starting ARR: $1.38M - Ending ARR: $3.61M - Growth: 162% ``` --- ## Segmentation Analysis ```yaml segment_analysis: by_plan: - name: Starter mrr: 20000 customers: 300 arpu: 67 churn: 6% - name: Professional mrr: 45000 customers: 150 arpu: 300 churn: 3% - name: Enterprise mrr: 50000 customers: 50 arpu: 1000 churn: 1.5% by_industry: - tech: {mrr: 60000, churn: 2.5%} - finance: {mrr: 30000, churn: 2%} - retail: {mrr: 25000, churn: 5%} by_company_size: - 1-50: {arpu: 100, churn: 5%} - 51-200: {arpu: 350, churn: 3%} - 201+: {arpu: 1200, churn: 1.5%} ``` --- ## Output Example **Request**: "Calculate SaaS metrics for my company" **Output**: ```markdown # SaaS Metrics Analysis ## Executive Summary Your SaaS business is showing healthy growth with some areas for optimization. ### Strengths ✅ - Net Revenue Retention of 108% (above 100% benchmark) - Quick Ratio of 2.3x (good growth efficiency) - Enterprise segment showing 97% retention ### Areas to Improve ⚠️ - LTV:CAC ratio at 2.7x (target: >3x) - CAC payback at 12.5 months (target: <12 months) - SMB segment churn at 4.5% (target: <4%) ### Recommendations 1. **Reduce CAC**: Focus on lower-cost acquisition channels 2. **Improve SMB retention**: Add onboarding sequences 3. **Expand enterprise**: Higher ARPU, lower churn 4. **Increase expansion revenue**: Upsell/cross-sell programs ### Key Metrics at a Glance | Metric | Value | Status | |--------|-------|--------| | ARR | $1.38M | 📈 +15% MoM | | NRR | 108% | ✅ Healthy | | LTV:CAC | 2.7x | ⚠️ Improve | | Runway | 29 months | ✅ Safe | ``` --- *SaaS Metrics Skill - Part of Claude Office Skills*