SaaS Magic Number Benchmarks
Go-to-Market Efficiency — 29 companies tracked
Data availability note
The SaaS Magic Number requires quarterly ARR snapshots and a breakdown of sales & marketing spend by quarter. Most public companies report ARR annually or disclose S&M spend as a combined line item. We are building the pipeline to extract this data from earnings transcripts and supplemental financial packages. Companies will appear here as data becomes available.
Extract Magic Numbers from earnings transcripts
Feedalyze parses earnings call transcripts and supplemental financial packages to surface quarterly ARR disclosures and S&M spend data needed to compute the Magic Number.
Magic Number Data
Data pendingWhat is the SaaS Magic Number?
The SaaS Magic Number, introduced by Lars Leckie at Hummer Winblad, measures how efficiently a company converts sales and marketing spend into new ARR. It answers a simple question: for every dollar spent on go-to-market, how much annualized recurring revenue does the company generate? A score above 0.75 indicates efficient GTM; above 1.0 means each S&M dollar generates more than $1 in new ARR.
Formula:Magic Number = (Current Quarter ARR − Prior Quarter ARR) × 4 / Prior Quarter Sales & Marketing Spend
Interpretation:Magic Number ≥ 1.0 = Invest aggressively in sales and marketing. Magic Number 0.75–1.0 = Efficient GTM, steady growth. Magic Number 0.5–0.75 = Review CAC efficiency before scaling further. Magic Number < 0.5 = Re-evaluate GTM strategy. This metric is most useful for companies with explicit quarterly ARR disclosures and transparent S&M reporting.