# Example: Healthy SaaS Metrics

**Company:** ProjectHub (mid-market project management SaaS)
**Stage:** Growth stage, Series B funded
**Customer Base:** 200 accounts, 20,000 users
**Period:** Monthly snapshot

---

## Revenue Metrics

### MRR/ARR
```
Starting MRR: $2,000,000
+ New MRR: $100,000 (10 new accounts)
+ Expansion MRR: $80,000 (upsells + usage growth)
- Churned MRR: $30,000 (5 accounts churned)
- Contraction MRR: $10,000 (3 accounts downgraded)
Ending MRR: $2,140,000

MRR Growth Rate: 7% MoM
ARR: $25.7M
```

### ARPA/ARPU
```
ARPA = $2,140,000 / 200 accounts = $10,700/month
ARPU = $2,140,000 / 20,000 users = $107/month
Average seats per account = 100 users
```

### Revenue Components
```
New MRR: $100K (5% of total)
Expansion MRR: $80K (4% of total)
Churned MRR: $30K (1.5% of total)
Contraction MRR: $10K (0.5% of total)
```

---

## Retention & Expansion Metrics

### Churn Rate
```
Logo Churn: 5 / 200 = 2.5% monthly (~26% annual)
Revenue Churn: $30K / $2M = 1.5% monthly (~17% annual)
```

**Analysis:** Revenue churn < logo churn = losing smaller customers, which is healthy.

### NRR
```
Starting ARR: $24M
Expansion: $960K (annual)
Churned: $360K (annual)
Contraction: $120K (annual)
Ending ARR: $24.48M

NRR = $24.48M / $24M = 102%
```

### Quick Ratio
```
Gains = $100K + $80K = $180K
Losses = $30K + $10K = $40K
Quick Ratio = $180K / $40K = 4.5
```

---

## Analysis

### ✅ Strengths

**Strong growth:**
- 7% MoM MRR growth
- Healthy mix: 5% new + 4% expansion

**Excellent retention:**
- 2.5% logo churn (below 5% threshold)
- 1.5% revenue churn (better than logo)
- 102% NRR (growing without new logos)

**Efficient expansion:**
- $80K expansion MRR (4% of base)
- Expansion-driven NRR
- Average expansion per account: $400/month

**Sustainable growth:**
- Quick Ratio 4.5 (gains far exceed losses)
- Revenue churn declining (was 2% six months ago)
- Newer cohorts retain better than older cohorts

### 📊 Opportunities

**Expansion room:**
- NRR at 102% is good, but room to grow to 110-120%
- Only 40% of customers have expanded (could push to 60%)
- Cross-sell opportunity: 30% of customers don't use integrations add-on

**ARPU optimization:**
- $107/user is solid for mid-market, but enterprise segment shows $200/user potential
- Could introduce premium tier for advanced features

**Reduce churn:**
- 2.5% logo churn is acceptable but not excellent
- Analysis shows 70% of churn happens in first 90 days (onboarding problem)
- Fix: Improve onboarding, aim for <2% logo churn

---

## Actions Recommended

1. **Scale acquisition aggressively** — Unit economics are strong (see `saas-economics-efficiency-metrics` for CAC/LTV)
2. **Improve onboarding** — Reduce early churn from 5% to 3% in first 90 days
3. **Expand cross-sell** — Push integrations add-on to 30% of base without it (potential +$30K MRR)
4. **Test premium tier** — 20 enterprise customers show willingness to pay 2x for advanced features
5. **Monitor cohort retention** — Continue tracking that new cohorts retain better than old

---

## Cohort Retention Trend (Positive Signal)

| Cohort | Month 6 Retention | Month 12 Retention |
|--------|-------------------|---------------------|
| 12 months ago | 85% | 78% |
| 6 months ago | 88% | TBD |
| Current | 92% (on track) | TBD |

**Analysis:** Newer cohorts retaining better = product improvements working. Safe to scale acquisition.
