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Benchmarking WorkDay's S-1 - How 7 Key SaaS Metrics Stack Up

Tom Tunguz

This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. Today, we’ll explore one of the enterprise behemoths, both in market cap and average revenue per customer: WorkDay.

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SaaS Metrics 101

OPEXEngine

The podcast is an excellent SaaS Metrics 101 listen even for experienced SaaS finance experts. And I’d point out that you need to benchmark both the performance metrics and the underlying individual metrics to diagnose exactly where to focus on improvement. Billings : Recognized revenue + change in deferred revenue for the period.

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The Remaining Performance Obligation (RPO) SaaS Metric

OPEXEngine

This SaaS metric is defined as the sum of Deferred Revenue and Backlog. Deferred Revenue for SaaS companies is the contractual obligation to deliver the SaaS product for the period invoiced. The former amount resides on the balance sheet as Deferred Revenue and has always been reported as required by GAAP.

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The SaaS Financial Model You’ll Actually Update (Updated 2019)

Baremetrics

For more established companies, the standard and widely-understood method for forecasting cash from annual payments is to forecast Deferred Revenue. The challenge is that I have never met a CEO or a founder who “gets” the deferred revenue upon first walk-through. We already know what the revenue forecast is.

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The Best SaaS Blog Posts and Resources Library

Chart Mogul

Benchmarks across the PLG user journey The hardest part of PLG might actually be… marketing?! How To Trick Investors & VCs by Only CFO The purpose of this post is not to educate you on how to commit/detect fraud, but to help you understand some of the accounting/finance nuances that might deceive investors. Forget about Threads.

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What is GAAP Accounting?

Baremetrics

By using a standardized best practice methodology, the company can benchmark accurately against its competitors. That way, the information regarding the financial position, revenues, and expenses are presented in a standardized, comparable accounting method that helps maintain consistency. How Is GAAP Used in Accounting?