Calculating your own SaaS metrics? You’re probably inaccurate.


blog.profitwell.comSaaS founders have lots of skills and are used to do it pretty much all. The downside of our proactive approach is that it might generate major errors. 

Recently, Zirtual collapsed due to the fact that they didn’t know their financial metrics precisely, resulting in too much burn and not enough revenue to cover costs, let alone grow. As Founder and CEO Kate Donovan herself said, “[our]numbers were just completely f***ed.”

We all may laugh or gossip about Zirtual’s demise, but how confident are you in your own financial SaaS metric calculations? How about when I tell you that we found 2 out of 5 SaaS companies with greater than $10M ARR were incorrectly calculating something as seemingly simple as MRR?




photo CC by Simon Li


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