Why SaaS Metrics Break Without Proper MRR Layering
In episode #286 of SaaS Metrics School, Ben Murray breaks down one of the most common — and costly — mistakes SaaS founders and CFOs make when building their Monthly Recurring Revenue (MRR) schedules: netting contraction and expansion. This seemingly small error can break your ability to calculate key SaaS metrics like Gross Revenue Retention (GRR) and Net Revenue Retention (NRR).
What You’ll Learn:
The essential structure of an accurate MRR waterfall schedule
Why separating expansion, contraction, and churn is crucial for calculating SaaS metrics
How to calculate GRR and NRR using distinct MRR layers
Why trailing 3- and 6-month annualized retention rates offer deeper insights
Pro tips on segmenting your MRR by product, ICP, or geography
Who This Is For: SaaS founders, CFOs, FP&A leaders, and revenue ops teams looking to improve their SaaS financial reporting and ensure clean, actionable SaaS metrics that stand up to investor scrutiny.
Resources Mentioned:
Join Ben’s private SaaS metrics community: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
Subscribe to Ben's newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page
Free SaaS Metrics Tools & Templates at TheSaaSCFO.com
Enjoying the show? Please rate and review the podcast — it helps more SaaS professionals discover how to build better businesses with metrics that matter.
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2:35
What’s a Healthy G&A Budget for SaaS? Benchmarks by ARR Stage
In episode #285 of SaaS Metrics School, Ben Murray dives into one of the most overlooked levers in SaaS financial performance—G&A (General & Administrative) spend. How much should you really be spending on back office functions like finance, HR, legal, and IT?
Using data from Benchmarkit.AI, Ben walks through G&A as a percent of revenue across ARR stages—from startups under $1M to companies exceeding $100M. He also explains how operating leverage is created through back office efficiency and why using benchmarks segmented by ARR is crucial in SaaS metrics analysis.
What You’ll Learn:
Why aggregate SaaS benchmarks are dangerous
G&A benchmarks by ARR segment (top quartile vs. median)
The role of operating leverage in SaaS profitability
How to evaluate your own back office spend using metrics
Actionable targets for G&A as a percent of revenue
SaaS Metrics Covered:
G&A % of Revenue
Operating Leverage
Opex Profile by ARR
Benchmarking by ARR vs. ACV
Resources Mentioned:
Benchmarkit.ai
Join Ben’s SaaS Metrics community for webinars, templates, and live sessions: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
Subscribe to Ben's SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page
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4:25
How Verint Defines AI ARR and Why You Need to Know This
In episode #284, let’s break down AI ARR. As artificial intelligence transforms SaaS business models, a new metric is gaining traction: AI ARR (Artificial Intelligence Annual Recurring Revenue). But what exactly is AI ARR, how do public SaaS companies define it, and why should private SaaS operators care?
In this episode, Ben Murray dives deep into how companies like Verint Systems are reporting AI ARR in their earnings and press releases. Ben breaks down the nuances of these definitions, the implications for SaaS valuation, and what founders, CFOs, and GTM teams need to know to stay ahead of the curve.
Key Topics Covered
What Is AI ARR?
Understand how public companies define AI-based recurring revenue and what makes it distinct from traditional ARR or subscription ARR.
Case Study: Verint’s AI ARR Disclosure
Learn how Verint, a customer and communication automation platform, separates AI ARR from Subscription ARR, and why AI now accounts for 50% of its recurring revenue.
Run Rate vs. Recognized Revenue
Explore the concept of “annualized quarterly run rate” and why some AI ARR definitions include overages and signed (but not yet active) SaaS contracts.
Why AI ARR Matters for SaaS Metrics & Board Reporting
Discover how AI ARR can become a key growth driver metric, especially for AI-first SaaS platforms or tools with significant AI adoption.
Benchmarking and Financial Transparency Trends
Understand why SaaS companies are simplifying metric reporting and focusing on high-signal KPIs like AI ARR for investors and stakeholders.
Who Should Listen
This episode is a must-listen for:
SaaS founders and CEOs scaling AI-powered platforms
CFOs and FP&A teams defining KPIs for board decks
SaaS investors tracking AI monetization trends
RevOps and metrics leaders modernizing dashboards
Anyone serious about becoming a SaaS metrics expert
Why This Episode Matters
As SaaS businesses race to integrate and monetize AI, understanding how to measure, disclose, and leverage AI ARR could be your edge in strategic planning, fundraising, or M&A.
SaaS Metrics School isn’t just about numbers—it’s about empowering you to lead with data.
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Never miss an insight from the top SaaS metrics podcast.
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4:44
Can a Properly Formatted SaaS P&L Increase Your Valuation Multiple?
In episode #283, I address some recent conversations with SaaS founders who implemented my SaaS P&L format. In one instance, it was key to a successful exit.
- How early should you implement the SaaS P&L
- Make your data easily consumable for potential acquirors
How to Structure Your SaaS P&L: https://www.thesaascfo.com/how-to-structure-your-saas-pl/
Join our SaaS community. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
Subscribe to Ben's SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page
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2:13
Are Public Tech Companies Defining ARR?
In episode #282, I cover some research I did for the SaaS Metrics Summit in NYC. Are public tech companies disclosing how they define ARR?
- Is ARR dead, or is it just evolving?
Join our SaaS community. https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
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Ben Murray brings you actionable SaaS metrics lessons that he has learned through years of being in the SaaS CFO trenches. Whether you are new to SaaS or a SaaS veteran, learn the latest SaaS metrics, finance, and accounting tactics that drive financial transparency and improved decision-making.
Ben’s SaaS metrics blog consistently rates a 70+ NPS, and his templates have been downloaded over 100,000 times. There is always something to learn about SaaS metrics.
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