ABS

Average Basket Size

aka Average Cart Size

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...

AOV

Average Order Value

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...

ARR

Annual Recurring Revenue

Annual recurring revenue (ARR) refers to revenue, normalized on an annual basis, that a company expects to receive from its customers for providing th...

bCAC

Blended CAC Ratio

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...

CAC

Customer Acquisition Cost

The cost of convincing a potential customer to buy a product or a service. With software, customers usually prefer the self-service approach; so ...

Cash

Cash Balance

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, ...

L/C

LTV/CAC Ratio

The Customer Lifetime Value to Customer Acquisition (LTV:CAC) ratio measures the relationship between the lifetime value of a customer, and the cost o...

Lftm

Customer Lifetime

Customer lifetime is the multiplicative inverse of the customer churn rate. If customer churn rate is a monthly % or yearly %, then the Customer Lifet...

LTV

Customer Lifetime Value

aka Lifetime Value, Lifetime Customer Value

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...

MExp

MRR expansion rate

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.

MktS

Market Share

aka Market share within target segments

The percentage of the addressable market your product has penetrated.

MRR

Monthly Recurring Revenue

Monthly Recurring Revenue (MRR) measures the monthly amount of total revenue that’s subscription-based or recurring in nature and highly likely to con...

nARR

Net ARR

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...

nMRR

Net MRR

Net monthly recurring revenue refers to the monthly value of newly acquired accounts to your sales system and monthly added value to current accounts,...

nRCM

Net Revenue Compounded Monthly Growth Rate

aka Net Revenue CMGR

Implied compounded monthly net revenue growth rate between two disparate months

NRG

Natural Rate of Growth

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 ...

OCF

Operating Cashflow

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 ...

PreM

Pre-Money Valuation

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 ...

Prev

Previously Raised

The amount of capital previously raised by the startup during other rounds of funding

RCM

Revenue Compounded Monthly Growth Rate

aka Revenue CMGR

Implied compounded monthly revenue growth rate between two disparate months

ROAS

Return on Ad Spend

Return On Advertising Spend, (ROAS), is a marketing metric that measures the efficacy of a digital advertising campaign. ROAS helps online businesses ...

ROI

Return on Investment

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 ...

RunR

Revenue Run Rate

Run rate is the financial performance of a company, using current financial information as a predictor of future performance. The run rate functions a...

SAM

Serviceable Addressable Market

aka Serviceable Available Market

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...

SOM

Serviceable Obtainable Market

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...

TAM

Total Addressable Market

aka Total Available Market, Market Potential

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...