SaaS Revenue & Growth Metrics

What it is

This skill helps founders, PMs, and operators understand and calculate the key metrics that show whether a SaaS business is healthy and growing. It covers revenue metrics like MRR and ARR, retention metrics like churn and net revenue retention (NRR), and expansion revenue. Use it to build dashboards, prepare board decks, or diagnose problems with growth momentum.

What it does

• 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

Use it 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