The SaaS CFO

MARCH 29, 2020

The cost of customer acquisition is one of the most analyzed SaaS metrics. Enter the SaaS CAC Ratio. Slightly different than CAC (customer acquisition costs), the CAC ratio studies the relationship between new and expansion bookings and sales and marketing expense. It’s different than […].

CFO 113

CFO Sales Marketing 113

CFO Share

NOVEMBER 29, 2021

CAC and CLV (aka LTV) are essential components of business growth analysis. CFOs use CAC and LTV for forecasting revenue and planning cash flows. CAC and CLV are even useful for evaluating business trends and developing channel strategy. How does CAC and LTV affect cash flow? A typical cohort-based CAC and CLV pattern.

CFO 90

CFO Budgeting Advertising Forecasting 90

The SaaS CFO

MAY 19, 2021

Almost everyone in SaaS has heard of the LTV to CAC ratio. And almost everyone has heard that we should target an LTV to CAC ratio of at least three. This was popularized (I believe) by the great content published by David Skok on SaaS metrics. But what does it mean to have an LTV […].

CFO 52

CFO 52

Driven Insights

JUNE 12, 2022

The financial priorities of your SaaS business will change as you move through each growth stage. A combination of rapid growth and good margins is vital to a high company valuation, and that means understanding your LTV to CAC ratio.

Valuation 52

Valuation Economics Marketing 52