What SaaS metrics and financial metrics really matter when you’re scaling toward your first $1 million in ARR? In episode #305, Ben Murray breaks down the essential numbers to track using his Five Pillar SaaS Metrics Framework. From building a strong accounting foundation to tracking investor metrics like retention, bookings, and gross profit, this episode gives you the tools to set your business model up for scale and eventual company valuation growth.

Whether you’re a founder, CFO, or finance lead, you’ll learn how to implement the right KPIs before you cross the $1M mark, so you can confidently present metrics to your team and/or investors and operate with clarity.

What You’ll Learn:

SaaSfy Your Accounting Foundation
1. Why your accounting system (QBO, Xero, etc.) needs a SaaS-specific structure.
2. How a clean P&L improves your ability to track revenue, margins, and KPI’s.
Track Bookings Data Early
1. Why executed contracts (new ARR, expansion ARR, and contraction) are one of the most important SaaS numbers.
2. How bookings feed your go-to-market efficiency calculations and help measure sales ROI.
Retention Is Key
1. Gross revenue retention, net revenue retention, renewal rates, and logo retention — and when each matters most.
2. How retention signals product-market fit and impacts valuation.
Other Metrics to Watch
1. Gross profit, EBITDA, cash flow forecasting, and cash runway.
2. How do these connect to financial strategy and your long-term investor metrics?

Why These Metrics Matter Before $1M ARR:

Creates a financial systems foundation for scale.
Equips you to benchmark your performance against peers.
Builds a data story for fundraising and valuation discussions.
Avoids costly gaps in financial modeling once growth accelerates.

Resources Mentioned"

🎓 SaaS Metrics Foundation Course – next cohort starts October 7th.
👉 Learn More: https://www.thesaasacademy.com/the-saas-metrics-foundation-course-community-phased

🧾 Quote from Ben

“If you don’t have your accounting foundation and bookings data in place before $1M ARR, you’re setting yourself up for chaos as you scale.”

Top SaaS Metrics When Scaling to $1M ARR

SaaS Metrics School