Q3 SaaS Metrics Report

After about 50 hours of work it’s finally done.

Here’s the report

What this is?

I reviewed the Q3 reports for more than 30 publicly traded SaaS companies.

Companies like Zoom, Salesforce, Hubspot, ServiceNow, Rubrik, Snowflake and Monday.

Then… I’ve calculated the core SaaS metrics for each business.

Things like CAC Payback, ARR growth rates, Magic number and Rule of 40 and then compared these numbers to the results from 2022 and 2023.

The key Insights

• CAC Paybacks are up about 45% over the last 2 years (not good).

• Growth rates are much lower

• The move towards efficiency is real. Free cash flow and operating margins are up.

Some crazy numbers from the report.

• Rubrik is growing at 55%

• Palo Alto Networks generated $1.47B in free cash flow in Q3

• Salesforce spent $1.36B on R&D in Q3 (where did it all go?)

There’s much more in there but you’ll have to read it to find out.

If you think the report is interesting please forward this email to someone you like so they can subscribe as well.

I also plan to send you emails when I find something interesting. It’ll typically be related to SaaS metrics and I doubt I’ll send more than once per week.

If you don’t want those emails - it’s cool to unsubscribe at any time.

Here’s the report again

Thanks for checking it out