Business Models

SaaS Business Model & Metrics

Understand the numbers that decide whether a SaaS lives or dies

12 lessons4 modules9h 25m durationbeginner level

Instructor: StretchLearn Faculty

About this course

This course teaches the recurring-revenue model behind subscription software and the metric stack used to run it. You will work through MRR/ARR bridges, gross and net revenue retention, CAC, LTV, payback period, and the Rule of 40 using real formulas and worked examples. By the end you can build and defend a simple SaaS unit-economics model.

Curriculum

Module 1: How the SaaS Recurring-Revenue Model Works3 lessons

From Licenses to Subscriptions: Why the Model ChangedPreview45m
Subscription, Usage, and Hybrid Pricing Models🔒45m
The SaaS P&L and Why Gross Margin Drives Everything🔒50m

Module 2: MRR, ARR, and the Revenue Movement Bridge3 lessons

Calculating MRR and ARR Correctly🔒45m
The MRR Movement Bridge: New, Expansion, Contraction, Churn🔒50m
Cohorts and the Quick Ratio: Diagnosing Growth Quality🔒45m

Module 3: Churn and Retention: The Make-or-Break Metrics3 lessons

Customer Churn vs Revenue Churn🔒45m
Gross and Net Revenue Retention🔒50m
Reducing Churn: Levers That Actually Move the Number🔒45m

Module 4: Unit Economics and the Benchmarks That Judge a SaaS3 lessons

CAC, LTV, and the LTV:CAC Ratio🔒50m
CAC Payback Period and Why Cash Timing Matters🔒45m
The Rule of 40, Magic Number, and Burn Multiple🔒50m