Who are the top HRIS players in SaaS? Check out the chart below from my 4th annual survey.

#HRIS #saas

Quick summary below with more details. HRIS Highlights

Hey, SaaS founders and finance pros, have you heard of Remaining Performance Obligations (RPO)?

It's a required disclosure for public SaaS companies and provides forward-looking revenue visibility.

Quick thread. #saas #RPO RPO is the value of contracted revenue that SaaS companies expect to recognize in the future from existing contracts with customers.

It's an important measure of a company's revenue visibility and backlog.

Your cash balance is the result of the decisions you make every day in your business.

If you're in a cash-burn mode, you must have a path to profitability. Understand the levers to pull with my 5 Pillar SaaS Metrics Framework.

Quick summary. #saas I use my framework as a roadmap to financial transparency and better decision-making in SaaS.

Move from left to right. Right metrics for the right stage of your business. #metrics

SaaS Metrics are more powerful when used together. In isolation, they offer less context.

Assess your CAC Profile to grasp the full picture of GTM efficiency.

🧵 Here’s a quick summary to help you analyze your CAC profile and grow. 📈 #saas You will need the following inputs for CAC profile calculations:

1️⃣Sales expenses - wages, taxes, benefits, travel, commissions, CRM, training, etc.
2️⃣Marketing - marketing, paid ads, conferences, brand, swag, ESP, etc.
3️⃣Bookings - dollars and logo counts

2023 is about time to value!

Watch this short demo on how you can create and publish your first #SaaS metrics dashboard in 2 minutes.

Follow the thread to see this live dashboard in your browser and how to create your dashboard account. See the live dashboard here. It's very easy to share with your team, Board, and investors without adding them as users. app.backofficetools.com/metricsdashboa…

How important are clear and distinct revenue streams in SaaS? Well, your valuation depends on it.

The proper SaaS P&L setup helps your team, your Board, and your investors.

Quick guide. #saas SaaS Revenue Streams

It's no longer just subscription revenue for SaaS companies. That was SaaS pricing 1.0.

I've worked with SaaS companies that had 5 distinct revenue streams.

Have you clearly defined your revenue categories?

Time for Advanced SaaS COGS. COGS vs OpEx is so important to get right.

But what if we have multiple revenue streams? Our COGS section must align with this.

Quick guide. #saas What departments are included in pure-play SaaS COGS?

For pure-play SaaS, your COGS structure should include:

1⃣Technical Support
2⃣Professional Services
3⃣Customer Success
4⃣Dev Ops

Of course, CS is up for debate depending on their role.

Dev Ops = Cost of Ops in my example

SaaS COGS vs. OpEx is a common discussion in my courses and with my clients.

What should I include in SaaS cost of goods sold (COGS)?

Quick guide below and why this is important. #saas What departments are included in SaaS COGS?

For pure-play SaaS, your COGS structure should include:

1⃣Technical Support
2⃣Professional Services
3⃣Customer Success
4⃣Dev Ops

Of course, CS is up for debate depending on their role.

Dev Ops = Cost of Ops in my examples

CFO’s will tell you that financial discipline never goes out of style. Good markets, bad markets. Doesn’t matter.

But with the tighter markets, everyone is calling for longer cash runways and attention to the Rule of 40 metric.

A quick post on the Rule of 40. #saas What is the Rule of 40?

It's a financial framework that measures revenue growth vs profit margins. The Rule of 40 determines the health and/or attractiveness of your business. To CFO’s, it adds financial discipline to your decision-making process.

I review a lot of SaaS P&L's. 90% are structured incorrectly or need improvement.

Quick thread on the 4 common mistakes in your SaaS P&L setup. With pictures :) #saas The SaaS P&L Structure

A properly formatted SaaS P&L tells you so much! And it's easily consumable by operators and investors.

- gross profit
- margins by revenue stream
- OpEx profile
- EBITDA
- and it easily feeds S&M efficiency metrics

Cost of Ops = Dev Ops in this example