Key SaaS Benchmarks And Metrics
A white paper from OPEXEngine by Bain & Company on key financial and operational metrics for building high performance, valuable SaaS companies.
What are the key SaaS benchmarks and metrics benchmarks to track in 2024?
In the fast-paced world of SaaS, chasing after growth like it’s the last golden ticket has been the norm for way too long.
But now, the industry’s tuning its gears towards sustainable profitability—a much-needed reality check. Gone are the days when swelling customer numbers justified any level of spending. Today, the spotlight is on key financial metrics like recurring revenue and customer economics KPIs.
These aren’t just numbers to fill out a report; they’re the financial version of a GPS, guiding companies through the turbulent waters of the tech world. By understanding these metrics, SaaS businesses can benchmark themselves against competitors, ensuring they’re not just growing, but growing smartly.
This shift isn’t just a trend; it’s a survival strategy that’s here to stay. The realization that “growth at all costs” often leads to unsustainable business models has prompted many to pivot towards more thoughtful financial planning.
Focusing on metrics like cost, expense, and profitability has become the new compass, helping organizations not only cut through inefficiencies but also uncover hidden opportunities for improvement. It’s less about how fast you can scale and more about how wisely you can build a sturdy, profitable foundation. This change in mindset is empowering SaaS companies to thrive in the long run, turning the complexities of finance into a strategic advantage.
SaaS Benchmarks And Metrics
We dive into the metrics that are top of mind for high-performance SaaS companies in our recently updated white paper, now refreshed for 2024.
This white paper expertly defines the critical metrics of a SaaS growth model:
- Recurring Revenue Metrics
- Customer and Unit Economics KPIs
- Cost, Expense, and Profitability Metrics
Today, these metrics and benchmarks are used by growth SaaS companies for budgeting, planning, business modeling, and fundraising, whether in the private or public markets. Now more than ever, we find that investors use these metrics to evaluate SaaS companies.
We are immensely grateful to the OPEXEngine client community, as the metrics, data, and insights in this paper are derived from our nearly 20 years of experience working with the world’s leading SaaS brands.
