DAU (Daily Active User) Growth Rate measures the growth in Daily Active Users over a period of time for SaaS and other subscription-based businesses. This KPI measures the success of a SaaS product as it reflects the ability of the product to attract and retain users over time.
DAU Growth Rate is calculated by subtracting the previous DAU from the current DAU and finding the growth percentage. Let’s assume your business has 2,500 daily active users at the beginning of the month, and by the end, you reach 3,000 daily active users. Your DAU Growth Rate is (3,000 – 2,500) / 3,000×100, which is 16.7%.
“[Unique new users] + [unique returning users] = total DAU
ƒ (Count(DAU end of period) – Count(DAU beginning of period))/Count(DAU beginning of period)
ƒ (Count(DAU end of period)/Count(DAU beginning of period) – 1)
The benchmark for DAU growth rate for SaaS companies can vary based on their size, industry, and market segment. Most companies aim to have a DAU growth rate of 3% to 5% per month.
Daily Active Users
MRR Growth Rate
DAU growth rate indicates the rate at which the company is acquiring and retaining users. A high DAU growth rate is seen as a sign of a healthy and growing business, while a low DAU growth rate indicates problems with the product, marketing, or customer retention.
SaaS companies can increase their DAU growth rate by improving the product experience, optimizing the user acquisition funnel, and investing in marketing and advertising.