Overview

SaaSGrid utilizes a best-in-class methodology for SaaS KPIs, while also providing the flexibility to support a wide range of analyses and business models. This documentation covers in detail how each metric is calculated so start-ups can have full confidence in their numbers. To view SaaSGrid charts populated with dummy data, see our demo dashboard.

SaaSGrid is designed to support subscription or usage/transaction based software revenue, and currently does not support non-software revenue, such as hardware or services, or future projections. Because SaaSGrid is focused on SaaS KPIs, the relevant revenue values may diverge from GAAP revenue. When filling out revenue in the SaaSGrid template, use the following guidelines:

For subscription models, input Monthly Recurring Revenue (MRR) as of the end of each month. Some examples:

• A customer pays $1200 for a 1 year contract, starting in January: Input $100 for each month starting in January.
• A customer pays $1200 for a 1 year contract, starting in January, but in July pays an additional $600 to update their contract for the rest of the year: Input $100 per month for January - March, and $200 per month starting in July.
• A customer pays $10 per user per month. In January, they have 2 users; halfway through February, they add 2 additional users: Input $20 for January and $40 for February, even if the amount the customer is charged for the month of February is <$40. In other words, ignore pro-ration and use the end of month’s MRR.

For usage or transaction based models, input the net revenue accrued in the month. Some examples:

• A customer pays $1 per API call, and uses 500 API calls in January: Input $500 for January.
• A customer pays $1 per API call and uses 500 API calls in January, but their contract dictates they have a $750/month minimum: Input $750 for January.
• A customer pays 1% of their sales each month. In January, their sales are $50,000: Input $500 for January.

The inputted revenue figure, regardless of whether it is MRR or net revenue, will be referred to as “revenue” in the below KPI definitions. “New revenue” will refer to the inputted revenue figure for customers who have never produced revenue in a previous period. Similarly, “new customers” are customers with inputted revenue in a given month and no revenue in any previous month.

Aggregation

Data is inputted into SaaSGrid in months, but KPIs can be aggregated into quarterly and annual views. Quarterly and annual aggregations have two settings:

• Calendar Year: January - December
• SaaS Year: February - January

For example, for the year starting in 2021:

Calendar Year

SaaS Year (FY 2022)

When metrics are shown on a quarterly or annual basis, there are two ways to compute the aggregation: based on the last month of the period or the sum of all the months in the period.

For example, Q1 revenue could be:

• March revenue * 3
• The sum of revenue in January, February, and March

Since SaaSGrid defaults to run-rate metrics, for most revenue metrics we use the last month of the period. Exceptions are Gross Margin, Burn Multiple, and LTV. All cost metrics are computed by using the sum of the costs for the months in the period.