Determine your SaaS co's minimum LTV:CAC ratio needed for profitability by reviewing your OpEx composition. Hint: 3x doesn't always mark the spot.
What should your LTV:CAC ratio be?
Tag: Metrics
How ASC 606 can inflate SaaS net retention and revenue growth
ASC 606, the latest revenue recognition standard, is now in effect for both public and private companies. Whereas in the past different industries followed different rules for revenue recognition, a promised benefit of ASC 606 is that all industries are now governed by one comprehensive set of guidance. Unfortunately, ASC 606 (like its 605 predecessor)… Continue reading How ASC 606 can inflate SaaS net retention and revenue growth
Determining LTV:CAC in the age of land & expand
Exec summary B2B SaaS companies are increasingly deploying land & expand distribution strategies. While land & expand works well for customer acquisition, it can create headache for one of SaaS’s favorite metrics. The original LTV:CAC formula doesn’t hold up for companies with land & expand motions. And the alternative method suggested of using a discounted… Continue reading Determining LTV:CAC in the age of land & expand
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