Companyon SaaS Benchmarks Modeling Tool
HOW TO USE THE SAAS BENCHMARKS MODELING TOOL (v 1.0)
Tab 1 - Data Input
Input the 20 requested metrics. You should already have these metrics measured in your financial model (beyond just revenue and expenses). If not, you should start tracking them immediately to understand the intricacies of your business and become data-driven.
Tab 2 - Data Output
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Based on the previous inputs, The SaaS Benchmarks Modeling Tool plots a company’s performance against peers in its revenue category. If a metric is highlighted in blue, it is within the benchmark range. If a metric is highlighted in pink, it is outside of the benchmark range and in need of improvement.
Sometimes “out of benchmark range” may not signal a significant red flag. Rather, falling outside of the benchmark range should prompt you to further investigate as it may mean that your company is performing better than peers. Yet if that metric is indeed relatively poor, you should analyze inputs and prepare to defend your Pro-forma metrics to potential investors.
For example, if a company’s logo retention is low but its net dollar retention is very high, its customers are churning quickly but its core customers are spending more than ever. As a result, that company’s situation is not as dangerous as The SaaS Benchmarks Modeling Tool may initially indicate.
To see the formula for each specific metric, click on its corresponding cell. For each metric’s industry definition, consult Page 9 of OpenView’s downloaded 2019 Expansion SaaS Benchmark Report.
Tab 3 - OV 2019 SaaS Benchmarks
Ignore this tab, which contains additional input data via OpenView and is included so that you can integrate The SaaS Benchmarks Modeling Tool into your financial model.
Incorporating The SaaS Benchmarks Modeling Tool into a Financial Model
Select the three tabs in The SaaS Benchmarks Modeling Tool to move them into your financial model, linking relevant cells to their corresponding 20 inputs.
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By integrating this tool with your financial model, you’ll be able to see how inputs beyond the 20 captured here can further impact performance. In addition, the integration will ensure that your metrics automatically update when you transition to a new (ideally higher) revenue bracket.