February 12th, 2026

1. SaaS METRIC OF THE WEEK: Margins by Revenue Stream. Understanding gross margins by revenue stream is crucial for a) SaaS profitability and b) Figuring out what products/features work and what don't. Check out the SaaS CFO's article on proper rev stream accounting and a detailed SaaS P&L setup to enable accurate margin analysis across your revenue streams. Best-in-class SaaS gross margin for revenue is 80% as your reference point.


2. PROFITS: Just how profitable should a SaaS Company be? This article from OnlyCFO looks to benchmark profitability data in SaaS and here are the main takeaways: Gross Margins are Crucial: Companies with low gross margins (around 50%) face a hard limit on profitability, even with efficient operations (one of the reasons SaaS is favored); As SaaS companies grow decreases in OpEx as a percentage of revenue should occur, as should Sales and Marketing costs (typically the biggest component of OpEx).


3. UNFAIR ADVANTAGES: Gaurav Vohra's Unfair Advantages Framework is a new one for your tech dictionaries. It's all about identifying unique, hard-to-replicate strengths: Proprietary data, customer networks, logged industry experience. It lets you leverage what others can't - it's a startup superpower moat IMO.


4. STRENGTHS AND WEAKNESSES: Expanding on number 3 above, this article explores how to turn a competitor's strength into your own advantage: Reposition their wins as your opportunities to differentiate, pivot, and outpace - really critical in today's competitive SaaS markets (with some good examples).


5. AEO: The SEO vs AEO battle has officially started. This was a great post shared with me last week from Think & Co which lays out how AI search is changing how answers are surfaced (I've alreday seen some ChatGPT-specific referrals come in via my day job) - but as mentioned a couple of weeks back, SEO still rules; AEO is the new distribution layer - best not to have all your eggs in the SEO basket.


6. PRICING: Packaging up offerings and finding the optimal pricing and features structures for both customers and business unit economics is incredibly hard and never right. The team at Heavybit knows this very well, and their article on using feature flags is a great read. This tactical guide breaks down early-stage pricing strategies that can actually work, from value-based to tiered. But beware - Changing prices doesn't exactly create goodwill. A solid breakdown from SaaStr shows that bit of the playbook: grandfather existing customers, anchor changes to new value (features, limits, outcomes), and use packaging - not blunt price hikes - to move ARPU.


7. GROWTH: People are more awesome than Brands - according to this article, the highest-leverage B2B media format is now a person, not a logo. As AI floods the web with bullshit generic content, trust is accruing to operators sharing lived experiences. Build your audience via individuals and people - then let the brand follow.


8. ONBOARDING: AI onboarding has reset the bar for us all: 60 seconds to value or users bounce according to this article. The best teams flip Onboarding from teaching UI to educating the agent, killing the "click tax." (new term for me). The real leverage comes when AI executes tasks (like Onboarding - not just guides), personalizes paths in real time, and delivers some share-worthy first output.


9. CANCELLATIONS: Cool fact - did you know that high-performing cancellation flows recover 10–30% of at-risk subscribers. Recurly shows the biggest wins come from "intent-based branching" (pause vs downgrade vs cancel.


10. CASE STUDY: A lot of traditional SaaS B2B companies are failing at AI - but Intercom isn't. Here is how.


POD OF THE WEEK: Claude Code launched and is a ripper of a product - this Podcast may already be outdated with how fast they are moving - but tons of content on some kick ass pro techniques (and watch, don't listen as it has some good demos).