Aug 14 2024 31 mins
In this episode, Tom Windhausen, CFO of a public software company, discusses the evolving role of a CFO and the importance of understanding financial metrics in the SaaS industry. He explains the significance of metrics such as MRR (Monthly Recurring Revenue), ARR (Annual Recurring Revenue), TCV (Total Contract Value), LTV (Lifetime Value), CAC (Customer Acquisition Cost), churn, and backlog. Tom emphasizes the need for consistent definitions and calculations of these metrics and highlights the importance of gross margin in assessing the health and strength of a company.