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The following paper addresses how to assess the profitability of a single user to a SaaS company, by taking into account the future value of a user and the costs incurred to acquire, retain and expand them. This research was conducted using manipulated data from a Portuguese startup, Codacy, and aims to help the company understand how unit economics intrinsic to the SaaS business model define user profitability, as well as their impact on it through the creation of single-variable scenarios and multi-variable scenarios.
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Software-as-a-service (Saas) Lifetime value of acustomer (Ltv) Customer acquisition cost (Cac) Costsof retention and expansion (Core) Profitability per user Churn Netretention Monthly recurring revenue (Mrr)
