Learn more about common financial (and startup) terms here. To learn more about Pilot, fill out the form below.
Sales and marketing efficiency measures how much revenue you generate based on your sales and marketing expenses.
You can calculate your S&M efficiency by dividing your gross revenue or gross new annual recurring revenue (ARR) by your sales and marketing expenses for the period. As a rule of thumb, having a sales and marketing efficiency of at least 1 is an indicator that your business is efficiently using its sales and marketing budget.
Some software as a service (SaaS) companies also use the magic number to measure sales efficiency. Rather than using gross revenue, the magic number compares a company’s net new ARR for the quarter to the previous quarter's sales and marketing expenses.
Pilot provides bookkeeping, CFO, and tax services for literally thousands of startups and growing businesses. We've successfully processed over 10 million transactions for our customers and have unparalleled expertise when it comes to helping businesses succeed.
We're the largest startup-focused accounting firm in the United States, and we'd love to help you. To talk to an expert on our team and find out what Pilot can do for you, please click "Talk to an Expert" below, or email us at email@example.com.
Get the peace of mind that comes from partnering with our experienced finance team.