B2B Benchmarks

A collection of benchmarks for B2B businesses (mostly relevant for early-stage SaaS).

  • Net Revenue Retention

    NRR measures the ability of a business to expand revenue over time. It’s only really useful if the company sells multiple products or one of them has some sort of usage based scaling factor that implies customers use it more over time.

  • Net Magic Number

    Net magic number is a measurement of go-to-market (GTM) efficiency for SaaS businesses. A magic number less than 1.0 indicates the business will lose money on each customer. Top SaaS businesses making less than $25MM in revenue per year have a magic number of 1.7 according to benchmarks from Iconiq Capital as in their business returns 1.7x for every sales and marketing dollar they spent to acquire customers.