Article · essay

The SaaS Metrics That Matter

David Sacks · sacks.substack.com Free Advanced

David Sacks (PayPal, Yammer, Craft Ventures) distills the metrics that actually predict a SaaS company's health, including the burn multiple he popularized. Sharp, operator-grade, and opinionated.

  • Net revenue retention and the burn multiple reveal true capital efficiency
  • Focus on a small set of metrics reviewed on a strict weekly cadence
  • Growth and profitability must be balanced (the Rule of 40)
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It answers 3 questions

  1. What metrics should I actually track as an early-stage SaaS founder?
  2. How do I build a simple financial model or revenue projection?
  3. What is churn and how much churn is too much?

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  3. A focused a16z piece on the single ratio that most captures a business's efficiency and drives its valuation. Great for... a16z.com Article · article Why Do Investors Care So Much About LTV:CAC? Andreessen Horowitz (a16z)
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