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GuideMar 2026

Choosing metrics for your business model

SaaS, consumption, services: which numbers matter, which mislead, and the discipline behind them.

Anubhav Dubey · Founder, Verlix10 min

The fastest way to mismanage a business is to run it on the metrics of a different one. Consumption businesses reporting pure MRR, and services businesses reporting ARR, are the two most common versions of this.

Subscription

  • MRR and ARR, with the four movements underneath them
  • Net revenue retention, the single best predictor of the next year
  • Quick ratio: gains over losses, and whether growth is efficient

Consumption

  • Committed spend against drawdown, not just billed revenue
  • Utilisation of contracted capacity, the leading signal for both expansion and churn
  • Breakage on prepaid credits, stated openly rather than discovered at audit

Services

  • Total contract value and backlog, not annualised run-rate
  • Percent complete by value, not by milestone count
  • Realisation and billable utilisation, where margin is actually won or lost
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