How SaaS Companies Measure Customer Lifetime Value

SaaS Business with Fexingo: Software-as-a-Service Companies, ARR, and Recurring Revenue · Oct 21, 2026 · 8m · transcript

In this episode, we dive into the critical metric of customer lifetime value and why it is becoming the primary driver for SaaS valuation. We explore how companies like Microsoft and Adobe shifted their focus from annual recurring revenue to LTV, examining the specific data points that matter most. Lucas breaks down the formula while Luna challenges the assumptions behind retention rates in the current market environment of October twenty-first, two thousand twenty-six. Learn how to calculate true profitability per customer and avoid the common pitfalls of overestimating expansion revenue…