The Big Mistake You Might Be Making In Calculating Churn: Failing to Annualize Multi-Year ATR Churn Rates
Most of thinking, definitions, and formulas regarding SaaS unit economics is based on assumptions that no longer reflect the reality of the enterprise SaaS environment. For example, thinking in terms of MRR (monthly recurring revenue) is outdated because most enterprise SaaS companies run on annual contracts and thus we should think in terms of ARR […]
Important Subtleties in Calculating Quarterly, Annual, and ATR-based Churn Rates
This post won’t save your life, or your company. But it might save you a few precious hours at 2:00 AM if you’re working on your company’s SaaS metrics and can’t foot your quarterly and annual churn rates while preparing a board or investor deck. The generic issue is a lot of SaaS metrics gurus […]
