Metrics that matter for recurring revenue
SaaS investors live and breathe recurring revenue metrics. Your pitch should be data-driven, showing clear paths to efficient growth and strong retention. The Rule of 40 (growth rate + profit margin > 40%) is your north star.
Your annualized subscription revenue, excluding one-time fees.
Benchmark: Seed: $100K-$1M ARR, Series A: $1M-$3M ARR.
Revenue from existing customers including expansion minus churn.
Benchmark: Best-in-class: 120%+, Good: 100-120%, Concerning: <100%.
Months to recover customer acquisition cost from gross margin.
Benchmark: Target: <12 months for SMB, <18 months for enterprise.
Revenue minus cost of goods sold (hosting, support, etc.).
Benchmark: Software: 70-85%, Infrastructure: 50-70%.
Percentage of customers or revenue lost each month.
Benchmark: SMB: <3% monthly, Enterprise: <1% monthly.
Show how customers behave over time
Prove you can acquire customers efficiently
Connect features to retention and expansion
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