By David Appel, Sage Intacct
As the newly designed virtual Modern SaaS Finance Summit moved into its second week, Marc Linden, GM & EVP, Medium Segment Native Cloud Solutions (MSNCS) at Sage, co-led a session with David Spitz, Managing Director at KeyBanc Capital Markets. They discussed how SaaS companies should measure their position in light of today’s volatile business environment. You can access the video and register for the summit here.
Here are highlights from the session and the three tips they shared, based on data from the annual KeyBanc Capital Markets SaaS Survey
Tip 1: Choose the metrics that best guide your business
David Spitz started by giving an overview of the top metrics investors want to see (in the image below). The focus now is on churn, cost structure, and capital consumption. Cash is what every board is asking about now.
- How much runway of cash do you have?
- What access to further capital do you have?
- What revenues can you depend upon, either customer by customer, or product by product, or cohort by cohort, depending on your billing model?