Metrics Knowledge

What this skill does

# Startup Metrics Knowledge

## Overview

This skill provides comprehensive guidance on startup metrics for SaaS and marketplace businesses. It covers metric definitions, calculation formulas, stage-appropriate benchmarks, and best practices for tracking and reporting.

## SaaS Metrics Fundamentals

### Revenue Metrics

| Metric | Formula | Description |
|--------|---------|-------------|
| MRR | Sum of monthly recurring revenue | Core subscription revenue |
| ARR | MRR × 12 | Annualized recurring revenue |
| New MRR | MRR from new customers | Growth driver |
| Expansion MRR | MRR from upgrades/upsells | Land-and-expand signal |
| Churned MRR | MRR lost from cancellations | Retention indicator |
| Net New MRR | New + Expansion - Churned | Overall momentum |

### Growth Metrics

| Metric | Formula | Good | Great |
|--------|---------|------|-------|
| MoM Growth | (MRR₁ - MRR₀) / MRR₀ | 10-15% | 20%+ |
| YoY Growth | (ARR₁ - ARR₀) / ARR₀ | 2x | 3x |
| Net Revenue Retention | (Starting MRR + Expansion - Churn) / Starting MRR | 100-110% | 120%+ |
| Gross Revenue Retention | (Starting MRR - Churn) / Starting MRR | 85-90% | 95%+ |
| Logo Retention | Customers retained / Starting customers | 85-90% | 95%+ |

### Unit Economics

| Metric | Formula | Target |
|--------|---------|--------|
| CAC | Sales & Marketing spend / New customers | Varies by ACV |
| LTV | ARPU × Gross Margin × (1/Churn Rate) | 3x+ CAC |
| LTV:CAC Ratio | LTV / CAC | 3:1 to 5:1 |
| CAC Payback | CAC / (ARPU × Gross Margin) | <18 months |
| Gross Margin | (Revenue - COGS) / Revenue | 70-80%+ |

### Efficiency Metrics

| Metric | Formula | Target |
|--------|---------|--------|
| Burn Multiple | Net Burn / Net New ARR | <2x |
| Magic Number | Net New ARR / Prior Q S&M Spend | >0.75 |
| Rule of 40 | Growth Rate + Profit Margin | >40% |
| Hype Ratio | Implied ARR Multiple / Growth Rate | <1x |

## Marketplace Metrics Fundamentals

### Volume Metrics

| Metric | Formula | Description |
|--------|---------|-------------|
| GMV | Total transaction value | Gross Merchandise Value |
| Net Revenue | GMV × Take Rate | Actual revenue |
| Take Rate | Net Revenue / GMV | Platform fee % |
| AOV | GMV / Orders | Average Order Value |

### Liquidity Metrics

| Metric | Formula | Description |
|--------|---------|-------------|
| Search-to-Fill Rate | Filled requests / Total searches | Demand satisfaction |
| Time-to-Fill | Avg time from request to fulfillment | Efficiency |
| Buyer-to-Seller Ratio | Active buyers / Active sellers | Balance indicator |
| Repeat Rate | Repeat transactions / Total | Stickiness |

### Marketplace Health

| Metric | Description | Target |
|--------|-------------|--------|
| Supply Liquidity | % of listings with transactions | >30% |
| Demand Liquidity | % of searches resulting in purchase | >20% |
| Supplier Concentration | Top 10% supplier revenue share | <40% |
| Cross-Side Network Effects | Growth correlation between sides | Positive |

## Burn & Runway

### Burn Calculations

| Metric | Formula |
|--------|---------|
| Gross Burn | Total monthly operating expenses |
| Net Burn | Gross Burn - Revenue |
| Runway | Cash Balance / Net Burn |
| Zero Cash Date | Today + (Runway months) |

### Burn Benchmarks by Stage

| Stage | Acceptable Burn Multiple | Target Runway |
|-------|-------------------------|---------------|
| Pre-seed | N/A | 18-24 months |
| Seed | <3x | 18-24 months |
| Series A | <2x | 18-24 months |
| Series B | <1.5x | 24+ months |
| Series C+ | <1x | 24+ months |

## Stage-Appropriate Metrics

### Pre-Seed / Seed
Focus on product-market fit signals:
- Engagement metrics (DAU/MAU, retention curves)
- Organic growth / word-of-mouth
- Early revenue or intent signals
- User feedback quality

### Series A
Prove repeatable revenue:
- ARR: $1-3M
- Growth: 2-3x YoY
- Retention: >100% NRR
- Unit economics trending positive

### Series B
Scale efficiently:
- ARR: $5-15M
- Growth: 2x+ YoY
- Burn multiple: <1.5x
- Clear path to profitability

### Series C+
Efficient growth at scale:
- ARR: $20M+
- Rule of 40: >40%
- Strong unit economics
- Market leadership indicators

## Cohort Analysis

### Revenue Cohorts
Track how revenue from each customer cohort evolves over time:
- Month 0: Initial MRR
- Month 3, 6, 12: Retention %
- Expansion curve: Upsell trajectory

### User Cohorts
Track engagement by signup cohort:
- Day 1, 7, 30 retention
- Feature adoption rates
- Conversion milestones

## Additional Resources

### Reference Files

For detailed guidance, consult:
- **`references/saas-metrics-guide.md`** - Complete SaaS metrics with formulas and examples
- **`references/marketplace-metrics-guide.md`** - Marketplace-specific metrics and benchmarks
- **`references/benchmarks-by-stage.md`** - Stage and industry benchmarks

### Example Files

Working examples in `examples/`:
- **`example-metrics-snapshot.md`** - Sample metrics report format
- **`example-cohort-analysis.md`** - Cohort analysis template