Understanding SaaS unit economics

One of the challenging parts of understanding the health of your SaaS business is getting a clear view of the unit economics of your business. For more background on SaaS unit economics, David Skok’s SaaS Metrics 2.0 post is a great primer on the subject. Hubspot’s Brad Coffey elaborates on additional challenges in Calculating COCA by Segment.

With the latest release of Opstarts, we make it easy for you to always have the figures you need at your fingertips. Our new reports and dashboard make it easier than ever to plan, calculate, and understand your unit economics.

SaaS and financial metrics dashboard

First, we’ve expanded our metrics dashboard (Analytics->Metrics) to include a wide range of key SaaS metrics that can be viewed on both an overall basis and on a product-by-product basis.

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Opstarts Core subscribers will see LTV, ARPU, Churn, and CAC calculations based on the product parameters and lead generation links you set up.

In addition to those metrics, Opstarts Pro subscribers can assign sales staff and other required resources to take employee-related costs into account as part of CAC. Pro subscribers can also designate expenses and employees as part of COGS to get a better understanding of their Gross Margin (and consequently, LTV). Lead generation links and any employee requirements set up in Opstarts sales planning are automatically included in CAC and COGS calculations. To include other expenses and employees as part of CAC or COGS, simply add those tags to any plan items.

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More flexible and powerful reporting

We’ve also incorporated these metrics into our reports module (Analytics->Reports) alongside existing financial and user figures. Easily see either a summary of your unit economics for a period, or generate reports showing how they change over time.

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Questions about how to best use these metrics to optimize your business? Have additional metrics or reports you’d like help calculating? Just email [email protected] and let us know!

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