Metrics That Matter in 2023: My KiwiSaaS Presentation Slides

Key takeaway

• For entrepreneurs: financial stewardship for startup founders. Effective management of finances, including budgeting, cash flow management, fundraising, and investor relations, is crucial for the sustainability and growth of a startup.
• For investors: focusing on the right metrics that reflect the current economic realities and potential for growth in SaaS companies. Investors should prioritize metrics such as ARR growth, free cash flow margin, and the Rule of 40 score, which are more indicative of a company's operational efficiency and financial health in the evolving market landscape.

Summary

Dave Kellogg's presentation at the KiwiSaaS conference, titled "Metrics That Matter in 2023," focuses on the significant shifts in the startup world and the SaaS metrics that companies should prioritize in the current economic landscape. The presentation is structured into three main sections: an overview of recent changes in the startup environment, a set of strategic recommendations for SaaS companies, and a detailed review of key SaaS metrics for 2023[1].

Insights

• Changes in the Startup World: Kellogg begins by noting the dramatic changes in the startup landscape over the past six months, suggesting a shift away from the conditions and strategies that prevailed in 2021[1].
• Strategic Recommendations: He offers a three-step approach for SaaS companies to navigate the new environment: extending financial runway, re-evaluating and justifying the company's last-round valuation, and preparing for the next funding round by focusing on crucial metrics[1].
• Key SaaS Metrics for 2023: Kellogg emphasizes several metrics including ARR growth, free cash flow margin, Rule of 40 score, subscription gross margin, and others. He notably excludes traditional metrics like churn and LTV/CAC, arguing for a focus on metrics that directly reflect current business health and potential for growth[1].

Implications

• Adaptation to Market Changes: SaaS companies must adapt their strategies and operations in response to rapid changes in the economic and investment climates[1].
• Focus on Financial Health and Efficiency: Extending the financial runway and improving efficiency are critical as funding may become less accessible. Companies need to plan meticulously to re-earn their valuations and secure future funding[1].
• Measurement and Performance Tracking: Emphasizing the right metrics is crucial for steering the company towards sustainable growth. SaaS companies should prioritize metrics that offer a clear view of their financial health and operational efficiency, rather than traditional but less immediately relevant metrics[1].

Citations: [1] https://kellblog.com/2023/03/29/metrics-that-matter-in-2023-my-kiwisaas-presentation-slides/ [2] https://www.vendr.com/blog/5-saas-metrics-your-company-should-be-tracking-in-2023 [3] https://www.raaft.io/blog/key-saas-metrics [4] https://www.saasalliance.io/saas-benchmark-metrics-report-2023/ [5] https://www.growthreflection.com/the-future-of-startup-growth-predictions-for-2023/ [6] https://www.insightpartners.com/ideas/saas-sales-periodic-table/ [7] https://www.madx.digital/learn/saas-metrics [8] https://www.linkedin.com/pulse/navigating-startup-landscape-2023-trends-insights-kumar-divyam [9] https://rampiq.agency/blog/saas-metrics-that-matter/ [10] https://www.growthunhinged.com/p/your-guide-to-2023-saas-benchmarks [11] https://www.cofi.ai/resources/the-importance-of-saas-metrics-in-2023 [12] https://www.claret-capital.com/saas-metrics-whats-really-important-to-investors-and-management-teams-in-2023-and-beyond/ [13] https://www.scalexp.com/blog/saas-benchmarks-cash-burn-2023/ [14] https://kellblog.com/2023/06/17/interpreting-the-insight-2023-sales-kpi-report/ [15] https://www.linkedin.com/pulse/how-2023-economic-trends-making-saas-sales-tougher-what-jeanne-sachs-r52de [16] https://www.saastr.com/the-most-important-saas-metrics-in-2023-with-monday/ [17] https://openviewpartners.com/2023-saas-benchmarks-report/ [18] https://foundersnetwork.com/blog/2023-startup-funding-trends/ [19] https://www.scalexp.com/blog/saas-benchmarks-revenue-retention/ [20] https://www.saas-capital.com/blog-posts/growth-benchmarks-for-private-saas-companies/