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SaaS Magic Number · Government

SaaS Magic Number for Government.

Sales efficiency: ARR added per dollar of S&M spend.

Modernization that respects the mission.

Finance & Strategy · Government

Why government operators use the saas magic number.

Calculate the Magic Number — net new ARR ÷ prior-quarter sales & marketing spend. Above 1.0 = invest more aggressively. Below 0.5 = pull back.

Public sector and government contractor work requires senior advisors who respect the mission, the constraints, and the procurement reality. SAZ partners with municipal, provincial, and federal teams on strategy, AI adoption, and digital transformation — and with contractors on capture, delivery, and ops.

Benchmarks

What good looks like — typical ranges to compare against.

< 0.5
Inefficient — pull back
0.5–0.75
Acceptable — tighten
0.75–1.0
Healthy — keep investing
> 1.0
Elite — invest more
The formula

How saas magic number is calculated.

Magic = (Net New ARR × 4) ÷ (Prior Q S&M Spend × 4)
Industry context

What changes when saas magic number is applied to government.

Modernization under procurement constraints

AI adoption with appropriate governance

Citizen experience and digital services

Vendor and contractor management

Run the numbers

Open the saas magic number.

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SaaS Magic Number · Government

Want a senior partner to interpret your results?

Email info@Sedighi.ca or call (604) 632-4959. A senior partner responds within one business day.

Responding to inquiries within 1 business day