Metrics
Optimize Stage | $15-40M ARR | 80-200 headcount
Main challenge: Improving efficiency and leverage. Margin erosion, bloated process.
Metrics to Measure
Principle: Efficiency metrics matter as much as growth metrics. Unit economics become the scorecard. Segment-specific metrics enable optimization.
Core Metrics at Optimize
| Metric | Target | Why It Matters |
|---|---|---|
| ARR | $15-$40M | Overall business health |
| ARR growth rate | 40-80% | Growth trajectory |
| Net Revenue Retention | >110% | Expansion + retention |
| Gross Revenue Retention | >90% | Base business health |
| CAC | Segment-specific | Acquisition efficiency |
| CAC Payback | Under 18 months | Capital efficiency |
| LTV:CAC | >3:1 | Unit economics health |
| Magic Number | >0.75 | Sales efficiency |
| Gross Margin | >70% | Business model health |
| Rule of 40 | >40 | Growth + profitability balance |
Efficiency Metrics (What's New at Optimize)
| Metric | What It Measures | Target |
|---|---|---|
| CAC Payback | Months to recover acquisition cost | Under 18 months |
| LTV:CAC | Lifetime value vs acquisition cost | >3:1 |
| Magic Number | ARR growth / Sales + Marketing spend | >0.75 |
| Revenue per Employee | Organizational efficiency | Increasing |
| Quota attainment | Rep productivity | >70% at quota |
| Sales cycle length | Deal velocity | Stable or decreasing |
Segment-Specific Metrics
| Metric | Enterprise | Mid-Market | SMB |
|---|---|---|---|
| ACV | Track | Track | Track |
| CAC | Higher acceptable | Moderate | Lower required |
| Sales cycle | 6-12 months | 2-4 months | Under 1 month |
| Win rate | 25-35% | 20-30% | 15-25% |
| Expansion rate | Track | Track | Track |
| Net retention | >120% | >110% | >100% |
Series B/C Benchmarks
| Metric | Good | Great | Top Decile |
|---|---|---|---|
| ARR Growth | 50%+ | 75%+ | 100%+ |
| Net Retention | 105%+ | 115%+ | 130%+ |
| Gross Margin | 70%+ | 75%+ | 80%+ |
| Magic Number | 0.5+ | 0.75+ | 1.0+ |
| CAC Payback | Under 24 months | Under 18 months | Under 12 months |
Validated against LeanScale Growth Model. Series B/C: 105% NRR standard for sales-led; 130%+ common in PLG/usage-based.
What NOT to Measure (Focus Risk)
- Too many segment cuts — meaningful sample sizes matter
- Vanity metrics — focus on actionable, not impressive
- Lagging without leading — need predictive indicators
Playbook reference: → Growth Model, Executive Reporting Suite