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skills/claude-office-skills/skills/saas-metrics

saas-metrics

SKILL.md

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:

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

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:

## 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:

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

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

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

# {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

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

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:

# 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

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