SaaS Economics
Burn Multiple: The Efficiency Metric That Matters
Burn Multiple: The Efficiency Metric That Matters. How much cash you burn per dollar of new ARR, the benchmark bands, and why it beat growth-at-all-costs.
#unit economics
8 articles
SaaS Economics
Why SaaS Gross Margin Is Destiny
SaaS gross margin sets the ceiling on CAC payback, R&D budget, free cash flow, and valuation. See why 80% vs 55% margin builds two different companies.
SaaS Economics
Usage-Based Pricing vs Seat-Based Pricing
Usage-based pricing vs seat-based pricing: one lifts net revenue retention through expansion, the other buys forecast predictability. A strategy call, not billing.
SaaS Economics
LTV Models: Where Founders Lie to Themselves
The LTV lifetime value formula founders use in SaaS inflates the number with blended churn, revenue instead of gross profit, and an infinite horizon. Fix all three.
SaaS Economics
CAC Payback Period: The SaaS Metric That Matters
CAC payback period is the SaaS metric that matters most: months of gross profit to earn back a customer. Benchmarks, the gross-margin lever, and a payback ladder.
IPO & M&A
How to Analyze a SaaS IPO
How to analyze a SaaS IPO: score growth quality, retention, the path to profit, and valuation with a 5-test scorecard built from real S-1 filings.
SaaS Economics
Rule of 40: What It Actually Tells You
The Rule of 40 SaaS metric forces growth and profit into one number. Read what a 42 actually tells you (and what it hides) through real 10-K filings.
IPO & M&A
How to Read a Tech S-1 Like an Operator
How to read a tech S-1 like an operator: skip the narrative, go straight to revenue mix, retention, SBC, and customer concentration. A read-order scorecard.