Which SaaS benchmarks do you track?
Alyona Mysko
11 replies
I was preparing a cheat sheet for SaaS businesses and want to discuss these benchmarks with other founders, and financial gurus.
What do you think about these excellent-good-danger zone benchmarks?
🔸Gross margins: 70% is excellent, 50% is good and 20% is a danger zone
🔸CAC Payback: 6-12 months is excellent, 12-18 months is good, while 100% is really bad
🔸Burn Multiple: <1 is great, 1.0-1.5 is good but >2 is a danger zone
These we just track as basic:
🔹LTV/CAC: 3:1
🔹Rule of 40: 40% (Year-over-Year Growth Rate(%) + EBITDA Margin(%))
🔹Runway: 24-36 months
🔹Cash Conversion Score: >1 best (ARR/(Total Capital Raised - Cash on Hands))
❓What benchmarks do you track? And where do you find these benchmarks?
P.S.: actually, this is my Linkedin post with this Cheat Sheet => https://fl.onl/CheatSheet
Replies
Dmytro Suslov@suslovcomua
Show me a startups with runways for 2-3 years ))))
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@suslovcomua we have a 48 months runway. What is the average runway from your experience?
@suslovcomua @alyona_mysko I believe that for startups 12-18 months is healthy enough. 24 months is awesome :)
@rozhevski1 12-18 months is really a healthy situation. In comparison with 6 month for fundraising it’s pretty ok
I know that Net Burn is also popular if we speak about Cash.
@jane_davydiuk sure. it’s always about burn rate, cash balance and runway. Time is money, money is time😅
Very useful sheet!
We track key SaaS benchmarks, including Monthly Recurring Revenue (MRR), Customer Acquisition Cost (CAC), Customer Lifetime Value (CLV), Churn Rate, and Gross Margin, to ensure the health and growth of our edtech application.