SaaS Revenue & Growth Metrics vs Financial Due Diligence

SaaS Revenue & Growth Metrics

By Dean Peters (PM)

Track your SaaS business health with MRR, churn, retention, and expansion metrics.

Financial Due Diligence

By Mohit Agarwal (PM Skills)

Build a complete financial review framework for any investment, acquisition, or partnership.

SaaS Revenue & Growth Metrics

• Calculates core SaaS metrics including MRR, ARR, ARPU, ARPA, and ACV
• Measures customer retention through churn rate and net revenue retention (NRR)
• Tracks expansion revenue from upsells, cross-sells, and usage growth
• Provides cohort analysis to show whether recent customers perform better than older ones
• Explains what each metric means and what benchmarks to aim for

Financial Due Diligence

• Creates a tailored document request list covering financials, revenue, costs, cash, debt, and tax
• Generates key analytical questions about revenue quality, margins, cash conversion, and liabilities
• Provides a red flags checklist highlighting common warning signs like customer concentration or aggressive accounting
• Outputs a summary assessment template to rate revenue quality, margin sustainability, cash generation, and overall risk

Reach for SaaS Revenue & Growth Metrics when…

• You're preparing a board deck and need to calculate and explain your key SaaS metrics
• You need to understand if your churn rate or retention numbers are healthy
• You're evaluating whether your pricing or packaging changes are working
• You want to diagnose growth problems or identify where revenue is coming from

Reach for Financial Due Diligence when…

• You're evaluating an acquisition target or investment opportunity and need to know what financial info to request
• You're vetting a major supplier or partner and want to assess their financial stability
• You're preparing for a board meeting or investor discussion and need a structured financial review framework
• You need to understand financial health but don't have a finance background