ACV

Annual Contract Value

Annual Contract Value (or ACV) is the annual yearly revenue generated from each customer contract.

AP

Accounts Payable

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 ...

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...

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 ...

cARR

Committed Annual Recurring Revenue

cARR stands for contracted (or committed) annual recurring revenue. It differs from ARR beause it takes into effect known future business and known fu...

CCR

Customer Churn Rate

aka Churn Rate, Logo Churn, Customer Turnover Rate

The percentage of customers who end their relationship with a company in a given period. This is also referred to as "logo churn".

COGS

Cost of Goods Sold

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. ...

ConR

Conversion Rate

aka Conversions, Acquisition conversion rate

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...

CPR

CAC Payback Period

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...

GM

Gross Margin Value

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...

GP

Gross Profit

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...

Grow

Growth rate

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...

HRev

Historical Revenue

Revenue is the income generated from normal business operations and includes discounts and deductions for returned merchandise. Historical revenue is ...

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...

MPR

Market Penetration Rate

aka Market Penetration

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...

nCAC

New Customer CAC Ratio

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...

NDR

Net Dollar Retention

aka Trailing Twelve Month NDR

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...

NPS

Net Promoter Score

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...

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 ...

SAL

Sales Accepted Leads

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...

SAR

Services Attach Rate

aka Attach Rate, Attach Ratio

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.

SPC

Sales Pipeline Coverage

aka Sales to Quota Ratio

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...

SQL

Sales Qualified Leads

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...

TCV

Total Contract Value

Value of one-time and recurring charges.

WP

Net New Weighted Pipeline

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...