Q4 SaaS Metrics Report

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

Here’s the report

What this is?

I reviewed the Q4 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 21% over the last 2 years (not good).

• Growth rates are much lower (from 34% down to 21%)

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

Some crazy numbers from the report.

• AppLovin is growing at 44%

• Palantir generated 55% Free Cash Flow margins in Q4 (whilst growing at 36%)

• Salesforce spent $1.42B on R&D in Q4 (where did it all go?)

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

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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.

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Here’s the report again

Thanks for checking it out