Software-as-a-service (SaaS) has exploded in popularity over the past decade. The model offers companies recurring subscription revenue and valuable customer insights. However, the metrics behind SaaS businesses require specialized expertise to analyze.
When evaluating or forecasting SaaS performance, core metrics like customer acquisition cost (CAC), lifetime value (LTV), and churn rate prove pivotal. Grasping how investors calculate and apply these KPIs unlocks sharper analysis.