Video · 6 min

Understanding the SaaS Magic Number, Benchmarks, Nuances & Investor Insights | SaaS Metrics School

Ben Murray · The SaaS CFO Free Beginner

Understanding the SaaS Magic Number, Benchmarks, Nuances & Investor Insights | SaaS Metrics School

Six minutes to see the magic number actually calculated, with the benchmark bands and the lag between spend and revenue that trips people up. Faster than reading the history if you just want to know whether your ratio is fine.

Watch on YouTube ↗

The question it answers

  1. What is the magic number and should I care about it at my stage?

Read with it

  1. The formula reference: CAC, months to recover CAC, magic number, net MRR churn and NRR, each with the calculation spelled out.... For Entrepreneurs Article · 20 min read SaaS Metrics 2.0: Detailed Definitions David Skok
  2. The magic number was invented at Scale, so this is the primary source, including the Omniture story behind the name and how the... Scale Venture Partners Article · 8 min read SaaS Metrics: A History of the Magic Number Dale Chang
  3. Separates gross sales efficiency, net sales efficiency and magic number, which most people use interchangeably and should not.... Scale Venture Partners Article · 10 min read SaaS Metrics: A Primer on SaaS Sales Efficiency Dale Chang
eChai Partner Brands The partnership →