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The 12 Most Frequent KPIs
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Average basket size refers to the number of items getting sold in a single purchase. This is an excellent support metric for AOV as it can provide con...
Annual Contract Value (or ACV) is the annual yearly revenue generated from each customer contract.
The average number of transactions over a specified period of time.
An ecommerce metric that measures the average total of every order placed with a merchant over a defined period of time. AOV is one of the most import...
Accounts payable (AP) is an account within the general ledger that represents a company's obligation to pay off a short-term debt to its creditors or ...
The Accounts Payable Turnover KPI shows the rate at which your business pays off suppliers. The ratio is the result of dividing the total costs of sal...
Accounts receivable (AR) is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. Accounts rec...
Average revenue per account (ARPA) is a profitability measure that assesses a company’s revenue per customer account. ARPA is generally measured on a ...
Average revenue per user measures how much revenue you’re generating for each active customer.
Annual recurring revenue (ARR) refers to revenue, normalized on an annual basis, that a company expects to receive from its customers for providing th...
The accounts receivable turnover KPI reflects the rate at which your business is successfully collecting payments due from your customers.
Amount of funding (USD) the company states it is seeking for an upcoming funding round.
Average Selling Price (ASP) is the average price a given product is sold for.
Average ticket size is the average amount a customer or party spends in one visit. This number can tell you how many monthly, daily–even hourly–visits...
The ATV of your business is the average dollar amount that a consumer spends with your business in a single transaction.
Fully-loaded S&M spend to acquire $1 of new ARR across all customers. Want the CAC to be as low as possible.In order to be a successful business that...
The time it takes an organization to break even from its investment in a new product or process. If the costs are big up front, this measure can help ...
The ratio shows a company’s burn rate in comparison with how it is adding new annual recurring revenue (ARR). It’s a concept that is particularly appl...
Burn rate is a measure of how quickly a business is losing, or burning through, money. This is a particularly important metric for startups and ventur...
The cost of convincing a potential customer to buy a product or a service. With software, customers usually prefer the self-service approach; so ...
cARR stands for contracted (or committed) annual recurring revenue. It differs from ARR beause it takes into effect known future business and known fu...
This is simply the amount of money in your bank account. A positive net cash balance indicates that money is present and available in the account, ...
The percentage of customers who end their relationship with a company in a given period. This is also referred to as "logo churn".
Contribution margin is a business’ sales revenue less its variable costs. The resulting contribution dollars can be used to cover fixed costs (such as...
Ratio of contribution margin to sales revenue The closer a contribution margin percent, or ratio, is to 100%, the better. The higher the ratio, the m...
Committed Monthly Recurring Revenue (CMRR) looks at current MRR, as defined as (New Business + Expansion – Contraction – Churn), and then adds in sign...
The cost to acquire one net new dollar of ARR.
Cost of goods sold (COGS) is also referred to as costs of sales or costs of services. Simply put, COGS is the cost of producing a product or service. ...
Conversion Rate is a measure of the amount of visitors who have completed a goal on a website. The higher the conversion rate, the more successful the...
We define capital consumption as cumulative capital consumed for each $1 of ARR achieved to date by year-end. Capital consumed ratio is a measure of ...
This will tell you the exact cost of every click, made possible by marketing campaigns. For most businesses, a 5:1 revenue-to-ad ratio is considered ...
A Cost per Lead is an important metric that measures your marketing and sales campaigns' efficiency when generating new leads for your sales team. CPL...
Cost per Mille or CPM is what you pay for 1,000 impressions. This was a popular way of determining ad costs for print ads, and it is still sometimes t...
The SaaS Metric CAC Payback Period is the number of months it takes to earn back the money invested in acquiring customers. It shows your break even p...
The amount of money a company has to spend in a given period to retain an existing customer. Retention costs include customer support, billing, promot...
Current Ratio KPI divides total assets by liabilities to give you an understanding the solvency of your business—i.e., how well your company is positi...
The percentage of customers retained over a given period of time. This is also referred to as “Logo Retention”. A 100% retention rate is always good. ...
A ratio showing how often people who see your ad or free product listing end up clicking it. Clickthrough rate (CTR) can be used to gauge how well you...
Total number of unique users active in a 24-hour day, averaged over a given period of time.
Your average deal size is the average size of your deals. It is the total revenue achieved in a set period (e.g., a month, a quarter, a year) divided ...
The EBITDA metric is a variation of operating income (EBIT) that excludes non-operating expenses and certain non-cash expenses. The purpose of these d...
Efficiency score is calculated by dividing the net new ARR by the net burn Good is <0.5x, Better is 0.5x-1.5x, Best is >1.5x
The sum of ARR from all new business subscriptions and upgrades
Fill rate refers to the percentage of customer demand that is met by immediate stock availability, without backorders, stockouts or lost sales. A go...
The projected future revenue. There are four main types of forecasting methods that financial analysts use to predict future revenues, expenses, and c...
How much money you keep from every dollar spent on making and selling the product. This evaluates a company's operating expenses.It is calculated by s...
A calculation of how much revenue is lost by customers not renewing or canceling during a given period of time A typical “good” churn rate for SaaS c...
The amount it costs to get $1 annual contract value (ACV). Best efficiency is 1:1. A GEI value of under 1 is viewed as optimal revenue acquisition, ...
The Gross Profit Margin shows the income a company has left over after paying off all direct expenses related to the manufacturing of a product or pro...
Monthly recurring revenue lost in a given month, compared to that at the beginning month
Gross merchandize volume (GMV) is the total sales dollar value for goods sold or services purchased through the marketplace over a certain time. ...
The income a business has left, after paying all direct expenses related to the manufacturing of a product. The calculation of gross profit only takes...
Gross profit margin shows you how a product, or groups of products, is performing in your business and measures your business productivity. By monitor...
Score Bessemer uses to define the attractiveness of a business investment Some benchmarks: 3-4 is good, 4-6 is better, >6 is best
We measure growth as a rate, which is the ratio of the cumulative quantity at the end of a given period to that quantity at the beginning of the perio...
Gross Revenue Retention only considers the starting revenue minus any revenue lost through downsell or churn. The maximum possible value for Gross Re...
Revenue retained, divided by total revenue form the previous time period
Gross Sales Efficiency simply looks at Gross New ARR (which does not include churn) A ratio between 0-0.5 usually indicates the company doesn't have...
Total sales or payment dollar volume transacted in a given period, used for eCommerce sellers
Revenue is the income generated from normal business operations and includes discounts and deductions for returned merchandise. Historical revenue is ...
Revenue Growth Rate measures the month-over-month percentage increase in revenue. It’s one of the most common and important startup metrics. The Reven...
A way to quantify "hype" around a company. Hype has value to the extent it creates halo effects that drive interest in the company that ultimately inc...
The inventory turnover KPI allows you to know how much of your average inventory your company has sold in a period. The KPI gives you a picture of you...
The Customer Lifetime Value to Customer Acquisition (LTV:CAC) ratio measures the relationship between the lifetime value of a customer, and the cost o...
The Lead Conversion Rate is the percentage of visitors who come to your website and are captured as leads. This is one of the most important top-of-th...
Customer lifetime is the multiplicative inverse of the customer churn rate. If customer churn rate is a monthly % or yearly %, then the Customer Lifet...
Out of all the unique visitors who visited your website, how many had an awesome first time experience? (this can be determined by tracking certain ev...
A prognostication of the net profit contributed to the whole future relationship with a customer. Customer lifetime value can also be defined as the m...
The economic value of a new lead.
How many potential customers are considered very likely to become actual customers. The Lead Velocity Rate is the growth percentage of qualified leads...
Total number of unique users active at least once in last 28 days.
MAU Growth is a good proxy to show product traction, but only if the growth is sustained over a certain period of time. MAU Growth can be easily infla...
MRR expansion rate is the additional MRR generated for your business that comes from existing customers, usually in the form of add-ons or up-sells.
The SaaS Magic Number is a widely used formula to measure sales efficiency. It measures the output of a year's worth of revenue growth for every dolla...
The percentage of the addressable market your product has penetrated.
Market penetration is a measure of how much a product or service is being used by customers compared to the total estimated market for that product or...
A Marketing Qualified Lead is one whom has been deemed more likely to become a customer compared to other leads. This qualification is based on which ...
Monthly Recurring Revenue (MRR) measures the monthly amount of total revenue that’s subscription-based or recurring in nature and highly likely to con...
Net yearly recurring revenue refers to the yearly value of newly acquired accounts to your sales system and yearly added value to current accounts, mi...
How much money the company spends in a month less what it makes from subscriptions (should be a positive number for companies that spend more than the...
Fully loaded S&M spend to acquire $1 of new ARR from a new customer. Want the CAC to be as low as possible .In order to be a successful business that...
The sum of losses minus gains in revenue from existing customers only (exclding new customers), divided by total revenue from the previous time period...
N-day retention measures how many of your users come back to your app on a particular day, the "nth" day. For most industries, average eight-week ret...
NDR measures the average percentage change in revenue over the first 12 months of a customer. It is the most cost-efficient way of accelerating revenu...
Net income is the profit that remains after all expenses and costs have been subtracted from revenue
Tracking annual contract value of new logos and % growth over time helps you manage your GTM strategy. This is particularly important if you’re trying...
The number that will go negative if the Expansion revenue from existing customers starts to outstrip the lost revenue from churn. Getting to negative ...
Net monthly recurring revenue refers to the monthly value of newly acquired accounts to your sales system and monthly added value to current accounts,...
Net Margin Value is obtained by subtracting all the fees and expenses from the Gross Merchandise Value. More realistic look into how business is actu...
Net new ARR equals ARR from new business acquisition and the incremental ARR from expansion and upsell.
Net profit, sometimes referred to as the bottom line or net income, is the amount left over after all expenses, including the cost of goods sold, oper...
Net profit margin is the ratio of net profits to revenues for a company or business segment. Net profit margin is typically expressed as a percentage ...
NPS is a metric used in customer experience programs. NPS measures the loyalty of customers to a company. NPS scores are measured with a single questi...
Implied compounded monthly net revenue growth rate between two disparate months
The intent of NRG is to peel back the layers of your business like paid marketing and sales to understand what the true impact of your product is for ...
NRR measures the percentage of revenue retained from all customers (regardless of time as a customer) over a rolling moving 12-month window. In a SaaS...
Net Sales Efficiency measures Net New ARR, which is reduced by Churn A ratio between 0-0.5 usually indicates the company doesn't have a sustainable ...
Operating Cash Flow (OCF) is the amount of cash generated by the regular operating activities of a business within a specific time period. OCF begins ...
OEE is calculated by multiplying Performance (whether equipment is operating at the rated speed and output) X Quality (measuring the rate of defective...
The ratio of operating income to net sales, usually expressed in percent. This is used to measure the level and rate of profitability.
Online Share of Voice (OSOV) measures the relative share of online mentions of a brand (company or product) - especially in Social Media forums - rela...
Win rate is the percentage of leads that convert to sales. This measures how many opportunities you won, divided by the total number of opportunities ...
Total monthly active users with a registered account ("logged in") divided by the total unique visitors (inclusive of both "logged-in" and "logged-out...
Purchase Frequency is a metric that shows the average number of times a customer makes a purchase within a set time frame, usually within a year.
This metric basically shows how many people are engaged in the payroll process in comparison to the total number of employees. If the ratio is rising...
Profit Margin per Product will help you determine which products to push, how much you can discount, and where to keep a closer eye on things because ...
The post-money valuation is the total of the pre-money valuation plus the additional equity injected into the company.
A pre-money valuation refers to the value of a company before it goes public or receives other investments such as external funding or financing. Put ...
The amount of capital previously raised by the startup during other rounds of funding
The pretax profit margin is a financial accounting tool used to measure the operating efficiency of a company. It is a ratio that tells us the percent...
Power users drive some of the most successful companies, by contributing a ton of value to the network. Power user use can be measured using power use...
What percent of reps hit quota? This generally sits between 70-100% (if it’s >100%, you need higher quotas). This is the anchor number for knowing whe...
The quick ratio is “a quick heuristic to asses whether new business is growing way faster than the loss of existing business. Also called the "acid t...
This is the percentage of people who almost complete a purchase, only to leave. They put something in their cart and maybe even make it all the way to...
Implied compounded monthly revenue growth rate between two disparate months
A metric used to understand customer loyalty and the amount of revenue that can reasonably be expected from an ongoign customer relationship, specific...
The volume of referred purchases as a percentage of your total purchase. The global average referral rate is about 2.3%. If you already have product-...
Percentage of revenue generated by the top customer, or top 20% sellers/suppliers. A rule of thumb holds that if any single customer accounts for te...
The amount of capital being raised in the current funding round.
Months until the company has $0 in the bank at the current burn rate
Return On Advertising Spend, (ROAS), is a marketing metric that measures the efficacy of a digital advertising campaign. ROAS helps online businesses ...
Capital efficiency is the ratio of how much a company is spending on growing revenue and how much they're getting in return. For example, if a company...
Return on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders' equity. Because shareholders' equity i...
Return on investment (ROI) is a financial metric that is widely used to measure the probability of gaining a return from an investment. It is a ratio ...
Revenue per click is simply the average revenue for each individual click on all of your pay-per-click keywords and ads.
Renewal is a small part of retention. The renewal process is the actions you take to get customers to sign up for another term once their contract is ...
The rolling retention rate formula includes customers that return on a specified day or any day after. Basically, customers that perform a certain act...
Retention rate is used to count customers and track customer activity irrespective of the number of transactions (or dollar value of those transaction...
Run rate is the financial performance of a company, using current financial information as a predictor of future performance. The run rate functions a...
Sales Accepted Leads (SALs) are marketing qualified leads (MQLs) that have met certain agreed-upon criteria and are passed along to the sales team whe...
Total volume of a particular product (or service) that can be sold by all vendors on the market within a territory that you are able to service for th...
The attach rate, also commonly referred to as an attach ratio, is the number of add-on products/units sold in relation to a primary product/unit.
The SEO Traffic KPI measures the number of visits to your website that are the result of organic or paid search traffic.
Session length is typically used in terms of app usage. It is the amount of time from when a user lauches teh app until they stop using or leave the a...
Total sales volume of a particular product (or service) that can be sold by your company within a territory that you are able to service for the plann...
Sales pipeline coverage (SPC) is how full your pipeline is relative to your quota for a given period. This valuable metric provides you with a good ov...
A Sales Qualified Lead involves a prospective customer - who has been qualified - being deemed ready for the sales team of your company to get in cont...
Number of units sold in a period, divided by number of items at the beginning of the period. What is a good sale through rate? It varies on a case by...
Take rate, aka rake, is the percentage of GMV collected by the marketplace and typically falls between 10% and 30%. High take rates are associated wit...
Total addressable market or TAM refers to the total market demand for a product or service. It’s the maximum amount of revenue a business can possibly...
Time Between Purchases is exactly that metric that shows you how often a typical customer goes before making a repeat purchase. This is a good stat to...
The number of free customers that become paid customers after a defined time period. Especially relevant for the Freemium revenue model.
Value of one-time and recurring charges.
Fully-loaded S&M spend to acquire $1 of new ARR from upsells & expansion Want the CAC to be as low as possible.In order to be a successful business t...
Use this formula if you have a tiered product or service in which users can upgrade to a higher level. It helps to determine how pleased users are and...
The number of new users an existing user generates. This metric calculates the exponential referral cycle - sometimes called virality - that accelerat...
Cash that is immediately available is "working capital". Cash on hand, accounts receivable, short-term investments are all included, as well as accoun...
Pipeline generated in the previous period less pipeline removed (sold or lost) is a good indicator of market pull, and a leading indicator for scaling...
Your website traffic to lead ratio simply means what percentage of visitors that come to your site turn into actual leads in any given time period. ...
Year-over-year (YOY) is the comparison of one period with the same period from the previous year(s). YOY growth compares how much you’ve grown in the ...
