Tier 2 source5 answers cite this
David Skok, "SaaS Metrics 2.0"
David Skok, "SaaS Metrics 2.0" is a tier 2 source on AskedWell — Established editorial reference. Cook’s Illustrated, King Arthur, Serious Eats class. It's cited in 5 cooking, fermentation, and baking answers. Click any answer below to read the cited claim in context.
Every answer citing this source
Each card below shows the question, the direct answer, and the note explaining WHY this source was cited in that specific context.
what is… · business
What is customer acquisition cost (CAC)?
CAC is the total cost to acquire one new paying customer — all sales and marketing spend over a period, divided by new customers gained in that period. For SaaS, healthy CAC is < ⅓ of LTV (lifetime value). Typical benchmarks: $200-1,000 for SMB SaaS, $5,000-25,000+ for enterprise.
Why we cite it here: Canonical SaaS metrics framework; CAC:LTV 1:3 benchmark originator
what is… · business
What is monthly recurring revenue (MRR)?
MRR is the predictable monthly revenue from active subscriptions, normalized to a monthly basis. For SaaS, MRR is THE growth metric — it isolates subscription health from one-time fees, refunds, and timing noise. New MRR + Expansion MRR − Churn MRR − Contraction MRR = Net New MRR.
Why we cite it here: Canonical SaaS metrics framework including MRR component breakdown
what is… · business
What is annual recurring revenue (ARR)?
ARR is the annualized value of all active subscription contracts at a point in time. Simply: MRR × 12. ARR is the standard SaaS valuation metric at scale ($1M+ ARR companies report ARR; below that, MRR is more useful). Public SaaS typically values at 5-15× ARR depending on growth rate + retention.
Why we cite it here: Canonical ARR + NRR framework; Net Revenue Retention threshold definitions
what is the difference between… · business
What is the difference between CAC and LTV?
CAC (Customer Acquisition Cost) is what you SPEND to get one customer. LTV (Lifetime Value) is what that customer is WORTH to you over time. The CAC:LTV ratio is the canonical SaaS health metric — 1:3 is the benchmark, <1:1 means burning money, >1:5 usually means under-investing in growth.
Why we cite it here: Canonical CAC:LTV framework + 1:3 benchmark origin
what is the difference between… · business
What is the difference between MRR and ARR?
MRR (Monthly Recurring Revenue) is the monthly value of active subscriptions. ARR (Annual Recurring Revenue) is MRR × 12 — the annualized run-rate. Use MRR for early-stage / SMB / monthly-billed SaaS (sensitive at small scale). Use ARR for enterprise / annual-contract SaaS / valuation conversations (smoother at large scale).
Why we cite it here: Canonical SaaS metrics framework; MRR/ARR usage guidance by stage
More like this
See the full citation graph → · How we tier sources · Browse every answer