Bessemer 5 Cs of SaaS Finance
December 18, 2009 1 Comment
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
- Churn
- Cash
- 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.
About David Cummings
All great metrics to track and several are core components of the SaaS “magic number”, which you can use to track sales velocity:
http://willprice.blogspot.com/2008/03/magic-number-for-saas-companies.html