David Spitz

Here’s the TLDR on public SaaS metrics at year-end 2023 (medians):
 
 - GROWTH: Anemic, but stable @ 18% 😴
 - PROFIT MARGINS: continue to move up 🎉
  >13% FCF 
  >14% Adj. EBITDA*
 - GTM: Still a MESS...😒
 > S&M % of Revenues @ 40% (35% excl. SBC*)
 > S&M % of Net New ARR: @ 237% (202% excl. SBC*)
 
 If you're looking at the chart and wondering why I'm not more sanguine about S&M trends as a % of Revenue... Sure it's improving modestly... but S&M relative to Net New ARR (what I call the GTM Spend Ratio)... is well above historical "healthy" norms. And this is the metric that matters most for GTM IMHO. 
 
 Note also that I've just introduced these GTM metrics w/out stock-based compensation expense. If you're a private companies looking to compare "apples to apples" against these metrics, make sure to compare yourself with the "excl. SBC" metric.
 
 I’ll post more details in the coming days.
 
 #SaaS #Metrics #Benchmarks
 
 * Notes:
 - SBC: Stock-based comp (manual process to back out of S&M, so only done for Q4)
 - Adj. EBITDA: Earnings before interest, taxes, depreciation, amortization and SBC
 - All data points in the charts are LTM (last 12 months)