SaaS metrics like LTV/CAC, NRR, and the Rule of 40 are widely treated as strategic scorecards, but guest author Itay Sagie argues they are merely outcomes — not strategies. In a boardroom where ARR growth beats plan and gross margins hold, the critical question remains: why are the numbers improving? Two companies can post identical 4x LTV/CAC ratios yet differ fundamentally: one builds efficiency through partner channels, viral loops, and workflow embedment; the other leans on aggressive pricing and unproven lifetime assumptions. Boards should probe positioning, scalable acquisition channels, payback periods, and cross-sell architecture rather than celebrate the ratio alone.

Retention metrics GRR and NRR similarly mask cause. Dollar expansion stems from product embedment — fast time-to-value, deep integrations, daily workflow reliance — not from setting retention targets. The Rule of 4 (ARR growth divided by annual churn above four) adds a durability check: growth atop a leaking bucket is fragile. Sagie urges directors to ask whether efficiency gains reflect true leverage or underinvestment in product and customer success.

Metrics illuminate; they do not decide. The board's job is to interrogate the engine, not admire the dashboard.