Continuing my series of posts of on software as a service (SaaS) financials from yesterday, let’s take a look at Bessemer’s great set of slides online titled the 5 Cs of SaaS Finance. SaaS really is a very different business model when compared to traditional software and Bessemer highlights some of the critical metrics. The Bessemer 5 Cs of SaaS finance include the following:
- CMMR – Committed Monthly Recurring Revenue
- CAC – Customer Acquisition Costs
- CLTV – Customer LifeTime Value
My recommendation is to pay close attention to these key performance indicators and to read through Bessemer’s slides for all the details.