STATSFORSTARTUPS
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 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.
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...
cARR stands for contracted (or committed) annual recurring revenue. It differs from ARR beause it takes into effect known future business and known fu...
Committed Monthly Recurring Revenue (CMRR) looks at current MRR, as defined as (New Business + Expansion – Contraction – Churn), and then adds in sign...
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. ...
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 ...
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...
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 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 projected future revenue. There are four main types of forecasting methods that financial analysts use to predict future revenues, expenses, and c...
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
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...
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
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...
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...
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...
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 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
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 ...
Implied compounded monthly net revenue growth rate between two disparate months
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 ...
The ratio of operating income to net sales, usually expressed in percent. This is used to measure the level and rate of profitability.
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...
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...
Implied compounded monthly revenue growth rate between two disparate months
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 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 ...
Run rate is the financial performance of a company, using current financial information as a predictor of future performance. The run rate functions a...
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...
Cash that is immediately available is "working capital". Cash on hand, accounts receivable, short-term investments are all included, as well as accoun...
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 ...
