Metrics to Watch

Lagging Financial Metrics Annual and Monthly Recurring Revenue (ARR/MRR). Track recognized ARR/MRR and ARR run rate (most recent month’s MRR * 12). They are rarely the same value for growing companies. Track ARR growth rate. Customer Lifetime Value (LTV). This is the average revenue per customer x the average number of years a customer is […]
Achieving Rule of 40

How do you achieve Rule of 40? TekStack believes that Rule of 40, or Profitable Efficient Growth is achieved four ways, in order: Improving win rates Increasing the size of your funnel Retaining and growing your customers Protecting your profits We call this Revenue Performance. Improve your win rate This is the first thing […]
Introducing Rule of 40

Introduction Selling tech got a lot harder the last couple years. According to PitchBook, revenue growth of public US VC-backed SaaS companies, the best and biggest, has fallen sharply since 2022. The top cohort were driving growth of 73% year-over-year in Q1 2022. A year later that growth was down to 32%, in 2024 that […]