Industry-Specific Metrics: SaaS, E-commerce & Marketplaces

    Two companies. Same revenue. $10M ARR. Company A - Traditional SaaS: 100 customers paying $100K/year Churn: 5% annually Growth: 20% YoY Valuation: $50M (5x revenue) Company B - SaaS with Expansion: 100 customers started at $50K/year Churn: 5% annually (same as Company A) But… existing customers now paying average $120K Net Revenue Retention: 120% Growth: 35% YoY Valuation: $200M (20x revenue) Same starting point. Same number of customers. Same churn rate. ...

    April 1, 2025 · 17 min · Rafiul Alam

    Customer Economics: The LTV/CAC Framework That Predicts Success

    Business Math Current: Customer Economics: The LTV/CAC Framework That Predicts Success Previous All Posts Profitability Metrics: Beyond 'Are We Making Money?' The $100M Mistake In 2011, a promising e-commerce startup raised $100M in funding. Their revenue was growing 20% month-over-month. The press loved them. Investors were excited. Eighteen months later, they shut down. ...

    February 1, 2025 · 10 min · Rafiul Alam