{"id":14167,"date":"2026-04-20T08:39:07","date_gmt":"2026-04-20T12:39:07","guid":{"rendered":"http:\/\/data-mania.com\/blog\/?p=14167"},"modified":"2026-04-20T08:39:07","modified_gmt":"2026-04-20T12:39:07","slug":"the-top-13-saas-revenue-metrics-that-every-founder-needs-to-care-about-in-2023","status":"publish","type":"post","link":"https:\/\/www.data-mania.com\/blog\/the-top-13-saas-revenue-metrics-that-every-founder-needs-to-care-about-in-2023\/","title":{"rendered":"The Top 13 SaaS Revenue Metrics That Every Founder Needs To Care About In 2023"},"content":{"rendered":"

One of the best things about founding a Software-as-a-Service (SaaS) company, in addition to the 85%+ margins, is how simple the SaaS revenue metrics are to track. These tech startups are so efficient and “lean”. That’s why there are only a handful of metrics that you need to diligently track to gauge the health of your business and how it’s growing.<\/span><\/p>\n

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In this post, we’ll outline some of these key performance indicators (KPIs). We will also review why you need to start tracking these metrics if you aren’t doing so today. These metrics are crucial for securing successful funding rounds as your SaaS company grows and approaches its exit. Venture capitalists (VCs) and committed founders highly value these metrics as you await crucial funding rounds.<\/span><\/p>\n

Let’s dive in!<\/span><\/p>\n

What Are The Top 13 SaaS Revenue Metrics Founders Need To Care About?<\/span><\/h2>\n

Annual Recurring Revenue (ARR)<\/span><\/h3>\n

Annual Recurring Revenue (ARR) is the lifeblood metric of any serious SaaS company. SaaS companies usually offer B2B contracts billed annually, ranging from five to eight figures in value, depending on the client’s business size.\u00a0<\/span><\/p>\n

Typically, VCs like seeing<\/span> at least $1m USD of ARR<\/span><\/a> to invest in a startup’s Series A funding round. It’s one of the most straightforward metrics to track, but one of the most important, too. It shows how much revenue is coming in and is an anchor for describing the company’s overall size.\u00a0<\/span><\/p>\n

Monthly Recurring Revenue (MRR)<\/span><\/h3>\n

One of the more boring SaaS revenue metrics on this list, monthly recurring revenue (MRR), is calculated by taking the ARR and simply dividing by 12. Business-to-consumer (B2C) companies that charge smaller, monthly, subscriptions often used MRR. <\/span>Jasper,<\/span><\/a> an <\/span>AI writing assistant,<\/span><\/a> is an example of a B2C SaaS company that charges monthly subscriptions. They report their recurring revenue monthly, aligning with the frequency of incoming payments.<\/span><\/p>\n

Reporting MRR has the advantage of allowing you to examine more detailed aspects of your incoming revenue.<\/a> Specifically, you can concentrate on reporting monthly recurring SaaS revenue metrics such as:<\/span><\/p>\n