Gross profit is a core metric in SaaS—and 80% is the benchmark often thrown around. But is that still realistic in today’s landscape? In episode #292 of SaaS Metric School, Ben Murray walks through real benchmarking data from Ray Rike’s benchmarks at Benchmarkit.ai and explains how gross profit should evolve as your business scales. He also dives into how to set up your SaaS P&L correctly and what to include in COGS vs. OpEx.

What You’ll Learn:

• What gross profit benchmarks actually look like today

• What is our north star GP%?

• How gross profit changes as you scale

• Common COGS setup mistakes in SaaS businesses

• What to do if your gross profit is trending in the wrong direction

Benchmarks Mentioned:

• Bottom quartile

• Median

• Top performers

Key Insight:
Don’t blindly shoot for 80% at every stage. Under $2M ARR? It’s okay to be lower. But once you’re in the $10–20M+ range, that 80% benchmark becomes more important—and achievable.

Resources:
👉 Learn how to properly set up your SaaS P&L and COGS categories at: https://TheSaaSAcademy.com

ARR Webinar: https://thesaascfo.webinarninja.com/live-webinars/10693368/register

How to Calculate ARR: https://www.thesaascfo.com/how-to-define-and-calculate-arr/

In episode #291 of SaaS Metrics School, Ben Murray breaks down one of the most important—and often debated—questions in SaaS finance:

💰 How much should we invest in sales and marketing this year?

Ben explores how to frame your sales and marketing spend using two key concepts:

• Sales & Marketing as a % of Revenue (OpEx Profile)

• Cost of ARR (Net New Annual Recurring Revenue Cost)

You'll hear current SaaS benchmarks from Ray Rike’s latest data set, which shows how spending evolves from early-stage startups to companies with $100M+ in revenue. Ben explains why high spend isn't bad—as long as there's ROI—and how to use GTM efficiency metrics to stress-test your budget and forecasts.

Key Topics Covered:

• Sales & marketing spend benchmarks by revenue tier

• Understanding your OPEX profile: R&D, S&M, and G&A as % of revenue

• Why spend ratios alone don’t tell the full story

• How to use the Cost of ARR to validate GTM efficiency

• Why growing is NOT scaling, and why that matters for every SaaS operator

• The two-metric combo every SaaS CFO should use

🎯 Takeaway: Don’t fly blind. Use these benchmarks and efficiency metrics to create informed, ROI-driven sales and marketing budgets.

📬 Join the Community: https://www.thesaasacademy.com/offers/dzSx6W32

Stay updated on new SaaS finance episodes, templates, benchmarks, and industry events by joining Ben’s newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page

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How much R&D spend is too much—or not enough? In episode #290 of SaaS Metric School, Ben Murray breaks down R&D spend benchmarks by company revenue size, based on data from Ray Rike’s Benchmarkit.ai. Whether you’re a founder, CFO, CTO, or finance leader, understanding how your R&D investment compares is crucial for building operational leverage and scaling sustainably.

What You’ll Learn:

• Why R&D spend can feel like a black box—especially for CFOs

• Top vs. lean R&D spending benchmarks by revenue tiers:

• How R&D spend typically scales down as companies grow

• Why controlling opex and creating operating leverage is key to cash flow and EBITDA

Resources & Links:

• 🔗 Benchmark your metrics for free at Benchmark.ai

• 📩 Join Ben’s SaaS community for templates, training, and upcoming events:

  https://www.thesaasacademy.com/offers/dzSx6W32

• Join Ben's SaaS newsletter:

  https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page

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