What does the SaaS magic number mean for business growth?

SaaS Magic Number: How to Calculate, Consider, & Act On Yours

What is the SaaS magic number and why is it important?

Calculation and interpretation of the SaaS magic number based on an example

Levers to Pull in Your Business to Improve Your Magic Number

Improve Magic Number by increasing sales and marketing efficiency

Lower your customer churn rate

Maintain healthy gross margins

Final remarks

  1. The magic number provides more powerful insights in combination with other SaaS metrics.
  2. You need to stay on top of your cash burn.

Combine with other SaaS metrics

  • Customer Acquisition Cost (CAC)
  • Payback period in months
  • Customer Lifetime Value (LTV)

Ensure sufficient cash flow generation

Don’t forget the bigger picture

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We love finance and forecasting, and hail from Canada to California, India to Italy, Miami to Milan, South Carolina to South Africa

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Marketing Team

Marketing Team

We love finance and forecasting, and hail from Canada to California, India to Italy, Miami to Milan, South Carolina to South Africa

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