Top 10 quotes by Ben Murray
Who is Ben Murray?
Ben Murray is a Certified Public Accountant whose passion for SaaS metrics, financial performance, subscription economy, forecasting, and SaaS operations drove him to start blogging on the same.
His posts shed light on SaaS finance and calculations. Follow Ben to manage your SaaS startup finances and calculate growth metrics accurately.
What are Ben Murray’s 10 best quotes?
- “You should measure the rule of 40 when you are a more mature company. Startups should not be measuring this because, at that stage, it’s more about product/market fit, go-to-market strategy, and cash flow”.
- “Let’s think about the investment in our people beyond traditional benefits such as health and retirement plans. Those are important and significant benefits, and as a CFO, I assess these each year.”
- “I think of it (Net Dollar retention) as the health of our recurring revenue and customer base. However, it’s really two stories in one metric.”
- “Recurring revenue is the engine of our SaaS business. We must monitor the health of this engine and adjust the engine if performance declines.”
- “Valuations are tied to the health of our recurring revenue. Great retention provides consistent cash flows and more time to fix issues in our business.”
- “Operators and investors love stable, recurring revenue streams. And if we can efficiently expand our customer base, all the better.”
- “As a CFO, the balance between sales and marketing spend and new ARR or MRR creation is critically important to measure and monitor.”
- “Your SaaS business is often roughly valued on multiples of ARR, but when exiting on a larger scale or exiting from private equity ownership, EBITDA is king.”
- “The Rule of 40 helps both SaaS operators and investors. As an operator, it adds financial discipline to your decision-making process. As an investor, it helps assess the attractiveness of a SaaS business.”
- “Beating the Rule of 40 is a choice for your SaaS business. How to beat it depends on your individual stage in the life cycle.”