Bio
David Skok is the architect of the modern SaaS metrics framework. His contributions are not just analytical but definitional: the LTV:CAC ratio, months to recover CAC, and the SaaS cash flow trough are concepts that Skok either originated or popularized to the point where they became industry-standard vocabulary. His reasoning process starts from a deceptively simple question: "Can I make more profit from my customers than it costs me to acquire them?" Everything else in SaaS finance flows from how rigorously you answer that question.
Operating themes
- Operating thesis: A SaaS business is only viable if the lifetime value of a customer significantly exceeds the cost to acquire them; the 3:1 LTV:CAC ratio and months-to-recover-CAC are the two metrics that determine long-term profitability and growth potential.
- Saas Unit Economics
- Saas Benchmarking
- Revenue Milestone Planning
- Pricing Strategy
Cards
- LTV ≥ 3× CAC, recover CAC in <12 months — and expect a multi-year cash flow trough before it pays off — LTV ≥ 3× CAC, recover CAC in <12 months — and expect a multi-year cash flow trough [Tier A]
- Halve churn, double LTV — retention beats acquisition optimisation by a multiple, not a margin — Halve churn, double LTV — retention beats acquisition optimisation by a multiple [Tier A]
- Negative churn — NRR above 100% — is the defining property of the best SaaS businesses — NRR > 100% (negative churn) is the defining property of the best SaaS businesses [Tier A]
- Salesperson unit economics is its own model — ramp time, payback, and failure rate, not just customer LTV/CAC — Salesperson unit economics is its own model — ramp time, payback, failure rate [Tier A]
- 30-40% of sales hires never reach quota — plan against the failure rate, not the headcount — 30-40% of sales hires never reach quota — plan against failure rate, not headcount [Tier A]
- A declining LTV:CAC ratio is a diagnostic, not a metric — it tells you something is wrong upstream — LTV:CAC decline is a diagnostic, not a metric — points at product, sales, or fit [Tier A]
Sources captured
- 2026-04 —
saas-metrics-20-a-guide-to-measuring-and-improving-what-matters-for-entrepreneur.md(operator essay archive) - 2026-04 —
saas-economics-part-1-the-saas-cash-flow-trough-for-entrepreneurs.md(operator essay archive) - 2026-04 —
saas-economics-part-2-scaling-the-business-for-entrepreneurs.md(operator essay archive)