What is the difference between the price and value of a SaaS company? How do metrics such as Enterprise Value to EBITDA multiples play a role in this discussion? Dave "CAC" Kellogg and Ray "Growth Rike discuss the topic on this episode of SaaS Talk with the Metrics Brother and cover a wide array of topics including:

• What is a SaaS company worth?
• What is the definition of "price vs value" in the stock market
• Examining Valuation Multiples What They Miss, Why They Differ, and the Link to Fundamentals
• How Cash and Debt impacts Enterprise Value
• EV/EBITDA vs EV/FCF vs EV/Revenue Multiples

An inspiration for this episode was from a paper written by Michael Mauboussin with the title: "Examining Valuation Multiples What They Miss, Why They Differ, and the Link to Fundamentals". You can read the paper by clicking here.

If you are a SaaS professional or even just interested in learning more about how SaaS companies are valued, this conversation is full of interesting insights and details on the concept of SaaS company valuations.

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Trouble shooting Go-to-Market (GTM) issues is a critical competency to master for every SaaS company as they face the pressures of lower growth and reduced revenue growth efficiency. Dave "CAC" Kellogg and Ray "Growth" Rike introduce a GTM trouble shooting framework that addresses the five primary opportunities to improve GTM efficiency.

The five key areas of Go-to-Market efficiency opportunities include:

• Pipeline Generation
• Pipeline Conversion
• Win Rates + ACV
• Customer Retention
• Customer Expansion

CAC and Growth discuss some of the key metrics that measure the performance and health of each of the above areas. In addition, as two former B2B SaaS operators, they cannot help but dive into some of the key issues and solutions that go beyond "trouble shooting" and move into potential solutions to enhance revenue growth efficiency and improve performance.

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Benchmarkit recently published their 2024 SaaS Performance Metrics Benchmark Report based upon 936 B2B SaaS companies participation. Dave "CAC" Kellogg and Ray "Growth" Rike discuss the recent trends and insights.

SaaS Metrics and the corresponding benchmarks discussed include:

• 2023 Growth Rates
• 2024 Planned Growth Rates
• CAC Ratio (Blended, New and Expansion)
• CAC Payback Period
• Net Revenue Retention
• Sales and Marketing expenses as a % of Revenue
• ARR per Employee

The full report and interactive benchmarking tool can be reached at: benchmarkit.ai/2024benchmarks

If you work in the B2B SaaS or Cloud industry this episode is a must listen!

NOTE: Benchmarkit was founded by SaaSTalk co-host, Ray "Growth" Rike"

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