SaaS Metrics 2.0 - A Guide to Measuring and Improving What Matters
by David Skok · forEntrepreneurs
Skok, a Matrix Partners GP and four-time founder, defines the metrics a subscription business runs on. The foundational text for the whole topic. Derives LTV, CAC, CAC payback and the 3:1 LTV:CAC and sub-12-month payback heuristics from first principles rather than asserting them, and explains the cash-flow trough that makes SaaS structurally different.
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