Before scaling your SaaS, fix cash flow dips and churn. Learn what causes the trough and how to grow without breaking your business.
https://www.reddit.com/r/SaaS/comments/1k55q9x/scaling_a_saas_read_this_first_cash_flow_trough/
When you’ve seen SaaS products rise, plateau, and scale again, you learn what truly moves the needle—and what’s just noise.
This guide distills David Stok's SaaS Metrics 2.0 into clear, actionable insights—blended with real-world lessons from operators like Ron Gill (former CFO, NetSuite) and Brad Coffey (former CSO, HubSpot).
Originally published in 2016, Stok's framework became the North Star for SaaS leaders aiming to decode unit economics, reduce churn, and navigate the cash flow trough with precision.
From CAC payback and LTV:CAC ratios to The Magic Number and Quota-to-OTE benchmarks, this guide breaks down each core metric—with practical context from the trenches of scaling SaaS products.
Whether you're facing boardroom scrutiny or sprinting toward your next funding round, this is your blueprint for confident, metrics-driven growth.
SaaS businesses aren’t like traditional models—you invest upfront and earn revenue slowly over time. That delay between cost and return makes metrics not just helpful, but mission-critical.
To build a thriving SaaS, you must nail three things:
Efficient Customer Acquisition High Retention Smart Monetization
But gut feeling isn’t enough. That’s where David Skok’s framework comes in—giving you a crystal-clear lens to answer:
Get these answers early, and you don’t just grow—you scale with confidence.