Forecasting revenue for a SaaS company is complicated. It requires an understanding of a company’s annual recurring revenue (ARR) and how it will grow over time due to the acquisition of new customers and the expansion and retention of existing customers.
- Tops-down trendline approach
- Bottoms-up revenue driver approach
We provide a practical, step-by-step guide to each of these SaaS revenue forecasting methodologies and also outline the considerations when choosing your forecasting approach.