SaaS “Industry-Centric” Business Models

By Eric Mersch | November 22, 2022

Both the Customer-Centric and Industry-Centric classifications provide valuable frameworks for evaluating SaaS companies. The CFO’s role is to provide operational and financial insight to the management teams and translate business performance into reporting for investors. Therefore, the CFO must understand both frameworks to succeed as a SaaS CFO.

The Remaining Performance Obligation (RPO) SaaS Metric

By Eric Mersch | May 3, 2022

Reporting of the Remaining Performance Obligation (RPO) Saas metric began with the adoption of ASC 606. In this guest post from Eric Mersch, he explains how this SaaS metric is calculated as the sum of Deferred Revenue and Backlog and why it has become an important indicator of SaaS financial performance.

SaaS Company Benchmarking: Leveraging Metrics for Performance Insights

By Eric Mersch | December 17, 2019

In the many years I’ve worked with SaaS companies, I continue to observe a surprising lack of standardization of SaaS metrics and performance reporting. My experience reinforces the fact that SaaS business model variants and approaches to measuring performance via metrics are still very much undefined. This is true even though selling software on a […]

Managing Apps in the Age of Saas: Avoiding the Risks of “SaaS Sprawl”

By Eric Mersch | August 13, 2019

In our engagements at FLG Partners, we often encounter situations in which companies default to systems to try to improve their business processes. Unfortunately, this approach can give a management team a false sense of security and almost always results in performance below expectations. At FLG, we typically find that process gaps are underestimated by […]

Becoming SaaS: How CFOs Need to Manage the Transition from Perpetual to Subscription Models

By Eric Mersch | December 18, 2018

The growing popularity of SaaS applications among end users, enterprise software buyers and investors creates tremendous pressure on traditional software providers to offer subscription versions of their applications. The business case for moving to SaaS is so strong that this business model is projected to dominate all software sales in the near term. According to […]