The SaaS world version of the old “You are what you eat” adage is “You are what you report.”

As a metrics aficionado, I’ve always been fascinated with the game theory behind what companies choose to disclose, and even more so, what they purposefully do not.

For public companies, there are a set of tried and true metrics that you have to report on for Securities and Exchange Commission requirements. And then there’s the other stuff that provides color.

And more specifically, there are metrics that you both disclose and GUIDE towards - meaning you provide a forward looking estimate of where you think you’ll land for the quarter and fiscal year.

Source: Cloudflare Q3 Earnings

What you typically guide (FORWARD looking):

  1. GAAP Revenue (topline)

  2. Non-GAAP Operating Income and Operating Margin (bottom line)

  3. Non-GAAP Fully Diluted Earnings per Share (your bottom line divided by the total number of shares outstanding)

Source: Cloudflare Q3 Earnings

What you disclose (BACKWARD looking)… typically a selection of…

  1. Non-GAAP Gross Margin

  2. ARR

  3. ARR Additions

  4. Remaining Performance Obligation

  5. Billings

  6. Total Customers

  7. Customers over $100K in ARR

  8. Net Dollar Retention

  9. Operating Cash Flow

  10. Non-GAAP Free Cash Flow

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