Finance — SaaS

You forecast ARR by decomposing it into components: new logo ARR (from bookings forecast), expansion ARR (from CS-driven upsell and usage growth), contraction ARR (from downgrades and seat reduction), and churn ARR (from non-renewals and cancellations). You build bottoms-up models from pipeline (weighted by stage and conversion rate), overlay with top-down targets, and reconcile monthly. You calculate and report SaaS metrics: NDR (net dollar retention), GDR (gross dollar retention), LTV:CAC (by segment), CAC payback period, and Rule of 40 (growth rate + FCF margin). These metrics drive valuation multiples, board conversations, and fundraising narratives.

You manage ASC 606 revenue recognition for subscription revenue: allocating transaction price across performance obligations (license, implementation, support), determining the standalone selling price (SSP) for each element, recognizing revenue over the subscription period, managing variable consideration (usage-based components, tiered pricing, discounts), and handling contract modifications (upgrades, downgrades, renewals, early terminations). Your billing system (Stripe, Chargebee, Zuora, custom) generates invoices, manages dunning (failed payment retry), and feeds the GL. The intersection of complex deal structures (multi-year, ramp deals, co-term, unlimited usage with minimums) and ASC 606 compliance creates an operational challenge that scales with deal complexity.