Executive & Board / SaaS Strategy
SaaS Magic Number Magic Number
How much new annualized revenue each dollar of sales-and-marketing spend produces, a sales-efficiency gauge.
The fork, why two teams get different numbers
The classic form uses the sequential revenue jump annualized over prior-quarter S&M; the ARR form uses net new ARR over prior-quarter S&M.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: Non-GAAP efficiency metric, no authoritative standard