Is renewal rate just another way of saying retention? Not exactly. In episode #316, Ben Murray breaks down the difference between renewal rate and the classic retention metrics—gross revenue retention (GRR), net revenue retention (NRR), and customer/logo retention.

Ben explains why the renewal rate is the leading indicator of retention, especially when running annual or multi-year contracts, and why investors, private equity buyers, and your board will want to see this number alongside your standard SaaS metrics.

If you’re a SaaS or AI operator looking to better understand your unit economics and improve your company’s valuation, this episode will help you put renewal rate into context as part of your financial metrics toolkit.

🧠 What You’ll Learn

✅ The definition of renewal rate and how it differs from retention.

✅ How renewal rate acts as the leading edge of retention performance.

✅ Why renewal rate matters most for SaaS and AI companies with annual or multi-year contracts.

✅ How to track renewal rate by customer count and dollar value.

✅ Why renewal rate is increasingly scrutinized in due diligence and PE-backed exits.

✅ How renewal rate complements ARR growth, gross profit, and retention metrics.

📊 Why It Matters

• For Finance Teams: Renewal rate shows early signs of churn risk before it hits your GRR/NRR numbers.
• For Leaders: Renewal performance provides insight into customer satisfaction and product adoption.
• For Investors & Buyers: Renewal rate is a leading signal of predictable revenue and future valuation.
• For Boards: Adds confidence in forecasting ARR, revenue growth, and unit economics.

📎 Resources Mentioned

🎓 SaaS Metrics Academy
— Courses on SaaS P&L, retention, and financial strategy: https://www.thesaasacademy.com/#section-1744932157830

🧾 Quote from Ben

“Renewal rate is the tip of the iceberg. If customers keep renewing at a high rate, your retention story will follow."

Every Board, investor, and potential acquirer is asking the same question: How are AI initiatives driving revenue? In episode #315, Ben Murray shares insights from his research into public tech companies and how they’re defining and disclosing AI ARR (Annual Recurring Revenue).

Using Verint as a case study, Ben explains how companies are leveraging AI-driven ARR, tying it to measurable outcomes, and communicating adoption in a way that resonates with both Wall Street and buyers. You’ll also hear how these disclosures may have supported Verint’s recent multibillion-dollar acquisition by Thoma Bravo.

If you’re a SaaS or AI operator, this episode will help you define AI ARR, communicate adoption signals, and position your business model for higher valuation.

What You’ll Learn

• What AI ARR is and how to calculate it.
• Why public companies like Verint are breaking out AI ARR from total ARR.
• The mechanics: how finance teams identify AI-influenced products and SKUs.
• Quantitative + qualitative adoption signals (e.g., number of users leveraging AI features).
• Why AI ARR disclosures matter for investor metrics and exit valuations.
• How Thoma Bravo’s acquisition of Verint shows the value of communicating AI initiatives.

Why It Matters

• For SaaS & AI Leaders: Properly defining AI ARR helps show investors where new growth is coming from.
• For Finance Teams: Accurate reporting requires collaboration across accounting, product, and FP&A.
• For Investors: AI ARR signals measurable adoption and future revenue growth.
• For Valuation: Tying AI initiatives to financial outcomes increases credibility in fundraising and exit scenarios.

Resources Mentioned

Blog Post: How to Define AI ARR: https://www.thesaascfo.com/ai-arr-vs-saas-arr-how-to-define-and-calculate/

The SaaS Metrics Academy: https://www.thesaasacademy.com/

Quote from Ben

“Don’t just say you’re building AI into your product — show investors how much ARR it’s driving and what outcomes it’s creating.”

Many usage-based companies like Twilio don’t disclose ARR as their North Star metric. So, what do they track instead to communicate growth and efficiency to investors?

In episode #314, Ben Murray shares his research from 10-Q filings, press releases, and earnings calls to uncover the seven most common financial metrics that usage-based companies highlight. From revenue growth and gross margin improvements to AI adoption and RPO (Remaining Performance Obligations), you’ll learn what matters most to analysts, investors, and acquirers when ARR isn’t the headline.

This is a must-listen if you’re building a usage-based business model and want to understand how to position your company for valuation and fundraising success.

What You’ll Learn

• Why many usage-based companies don’t lead with ARR or MRR.
• The 7 key metrics
• How AI adoption is becoming a narrative driver in earnings calls.
• Why RPO is gaining importance as a measure of forward visibility and future revenue.

Why It Matters

• For Investors: These metrics provide confidence in growth and scalability, even without ARR disclosures.
• For Founders: Tracking and segmenting these numbers helps communicate the right story to Boards and potential buyers.
• For Valuation: Metrics like RPO and NRR are increasingly driving company valuations in usage-based models.
• For Finance Leaders: Understanding which financial systems and SaaS metrics to track ensures more effective reporting and better alignment with investors.

Resources Mentioned

The SaaS Metrics Academy: https://www.thesaasacademy.com/

Quote from Ben

“If usage-based companies aren’t tracking ARR, what are they tracking? The answer is seven key metrics that investors want to see — from gross margin to RPO.”