In episode #288 of SaaS Metrics School, Ben Murray tackles a frequent mistake SaaS operators make when calculating Lifetime Value (LTV) — treating it as an aggregate rather than the point-in-time metric. Ben breaks down the correct formula, shares how to align it with gross revenue retention, and explains when LTV (and LTV to CAC) should be used SaaS businesses.

What You’ll Learn:

• Why LTV is a point-in-time estimate, not a company-wide average

• The correct formula for LTV in SaaS: Cohort ARPA × Gross Margin ÷ Churn

• How to choose the right churn input using gross revenue retention

• When LTV to CAC is reliable vs. misleading based on your sales motion (SMB, Mid-Market, Enterprise)

• Common pitfalls when using LTV in low-volume enterprise models

Key SaaS Metrics Covered:

• LTV (Lifetime Value)

• LTV to CAC Ratio

• Gross Revenue Retention (GRR)

• Cohort ARPA / ACV

• Churn measurement strategy (trailing 3 vs. 6 months)

Who Should Listen:
SaaS CFOs, founders, marketers, and RevOps professionals looking to improve financial modeling and SaaS efficiency metrics — especially if you rely on paid acquisition or track LTV to CAC closely.

Resources Mentioned:

• SaaS Metrics Foundation Course: https://www.thesaasacademy.com/the-saas-metrics-foundation

• Free SaaS Metrics Tools: TheSaaSCFO.com

• Subscribe to Ben's SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page

Like What You Hear?
Please leave a rating and review to help this podcast reach more SaaS professionals who want to build metrics-driven businesses.

In this episode of SaaS Metric School, Ben Murray dives deep into the often-confusing world of Subscription ARR (Annual Recurring Revenue). After analyzing over 160 public tech company filings, Ben shares the three most common ways companies define and calculate ARR—and why these differences matter for SaaS operators, investors, and finance teams. If you’ve ever struggled with benchmarking ARR or explaining it to stakeholders, this episode will give you clarity and context.

• The three standard definitions of Subscription ARR:

  1. Run-Rate MRR

  2. Annualized Contract Value

  3. Committed/Contracted ARR (CARR)

• The difference between ARR and CARR and why it matters

• Why even “pure subscription” businesses report ARR differently

• How public companies present ARR in earnings reports and filings

• The pitfalls of using AI tools (like ChatGPT) for ARR extraction

This episode is a must-listen if you are:
✅ A SaaS CFO or finance leader looking to align ARR reporting with industry norms
✅ A founder or CEO trying to understand what ARR numbers mean (and don’t mean)
✅ A SaaS investor or advisor comparing metrics across multiple portfolio companies
✅ Anyone responsible for forecasting, benchmarking, or reporting SaaS revenue metrics

• 📬 Join Ben’s SaaS Metrics Newsletter (85,000+ operators): https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page

• 📚 SaaS Community for templates, events, and training: https://www.thesaasacademy.com/offers/dzSx6W32

• 🔁 Coming soon: A database of ARR disclosures from public tech companies

• 🎧 Leave a rating or review to help grow the podcast!

In episode #286 of SaaS Metrics School, Ben Murray breaks down one of the most common — and costly — mistakes SaaS founders and CFOs make when building their Monthly Recurring Revenue (MRR) schedules: netting contraction and expansion. This seemingly small error can break your ability to calculate key SaaS metrics like Gross Revenue Retention (GRR) and Net Revenue Retention (NRR).

What You’ll Learn:

• The essential structure of an accurate MRR waterfall schedule

• Why separating expansion, contraction, and churn is crucial for calculating SaaS metrics

• How to calculate GRR and NRR using distinct MRR layers

• Why trailing 3- and 6-month annualized retention rates offer deeper insights

• Pro tips on segmenting your MRR by product, ICP, or geography

Who This Is For:
SaaS founders, CFOs, FP&A leaders, and revenue ops teams looking to improve their SaaS financial reporting and ensure clean, actionable SaaS metrics that stand up to investor scrutiny.

Resources Mentioned:

• Join Ben’s private SaaS metrics community: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout

• Subscribe to Ben's newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page

• Free SaaS Metrics Tools & Templates at TheSaaSCFO.com

Enjoying the show?
Please rate and review the podcast — it helps more SaaS professionals discover how to build better businesses with metrics that matter.

In episode #285 of SaaS Metrics School, Ben Murray dives into one of the most overlooked levers in SaaS financial performance—G&A (General & Administrative) spend. How much should you really be spending on back office functions like finance, HR, legal, and IT?

Using data from Benchmarkit.AI, Ben walks through G&A as a percent of revenue across ARR stages—from startups under $1M to companies exceeding $100M. He also explains how operating leverage is created through back office efficiency and why using benchmarks segmented by ARR is crucial in SaaS metrics analysis.

What You’ll Learn:

• Why aggregate SaaS benchmarks are dangerous

• G&A benchmarks by ARR segment (top quartile vs. median)

• The role of operating leverage in SaaS profitability

• How to evaluate your own back office spend using metrics

• Actionable targets for G&A as a percent of revenue

SaaS Metrics Covered:

• G&A % of Revenue

• Operating Leverage

• Opex Profile by ARR

• Benchmarking by ARR vs. ACV

Resources Mentioned:

• Benchmarkit.ai

• Join Ben’s SaaS Metrics community for webinars, templates, and live sessions: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout

• Subscribe to Ben's SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page

📈 Don’t forget to rate & review the show. It helps more SaaS founders and CFOs discover actionable finance content!

In episode #284, let’s break down AI ARR. As artificial intelligence transforms SaaS business models, a new metric is gaining traction: AI ARR (Artificial Intelligence Annual Recurring Revenue). But what exactly is AI ARR, how do public SaaS companies define it, and why should private SaaS operators care?

In this episode, Ben Murray dives deep into how companies like Verint Systems are reporting AI ARR in their earnings and press releases. Ben breaks down the nuances of these definitions, the implications for SaaS valuation, and what founders, CFOs, and GTM teams need to know to stay ahead of the curve.

Key Topics Covered

What Is AI ARR?

Understand how public companies define AI-based recurring revenue and what makes it distinct from traditional ARR or subscription ARR.

Case Study: Verint’s AI ARR Disclosure

Learn how Verint, a customer and communication automation platform, separates AI ARR from Subscription ARR, and why AI now accounts for 50% of its recurring revenue.

Run Rate vs. Recognized Revenue

Explore the concept of “annualized quarterly run rate” and why some AI ARR definitions include overages and signed (but not yet active) SaaS contracts.

Why AI ARR Matters for SaaS Metrics & Board Reporting

Discover how AI ARR can become a key growth driver metric, especially for AI-first SaaS platforms or tools with significant AI adoption.

Benchmarking and Financial Transparency Trends

Understand why SaaS companies are simplifying metric reporting and focusing on high-signal KPIs like AI ARR for investors and stakeholders.

Who Should Listen

• This episode is a must-listen for:
• SaaS founders and CEOs scaling AI-powered platforms
• CFOs and FP&A teams defining KPIs for board decks
• SaaS investors tracking AI monetization trends
• RevOps and metrics leaders modernizing dashboards

Anyone serious about becoming a SaaS metrics expert

Why This Episode Matters

As SaaS businesses race to integrate and monetize AI, understanding how to measure, disclose, and leverage AI ARR could be your edge in strategic planning, fundraising, or M&A.

SaaS Metrics School isn’t just about numbers—it’s about empowering you to lead with data.

Never miss an insight from the top SaaS metrics podcast.

Join our SaaS community. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout

Subscribe to Ben's SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page

In episode #283, I address some recent conversations with SaaS founders who implemented my SaaS P&L format. In one instance, it was key to a successful exit.

- How early should you implement the SaaS P&L

- Make your data easily consumable for potential acquirors

How to Structure Your SaaS P&L: https://www.thesaascfo.com/how-to-structure-your-saas-pl/

Join our SaaS community. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout

Subscribe to Ben's SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page

In episode #282, I cover some research I did for the SaaS Metrics Summit in NYC. Are public tech companies disclosing how they define ARR?

- Is ARR dead, or is it just evolving?

Join our SaaS community. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout

Subscribe to Ben's SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page

In episode #281, I cover my top three metrics to determine if you have a scaling problem. This is a follow-up to episode #280, the growing versus scaling problem.

- My foundational three metrics

- What’s the difference between growing and scaling?

Join our SaaS community. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout

Subscribe to Ben's SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page

Greg's podcast: https://podcasts.apple.com/us/podcast/profitability-playbook-the-simple-numbers-podcast/id1707856652