STATSFORSTARTUPS
Annual Contract Value (or ACV) is the annual yearly revenue generated from each customer contract.
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...
Average revenue per account (ARPA) is a profitability measure that assesses a company’s revenue per customer account. ARPA is generally measured on a ...
Annual recurring revenue (ARR) refers to revenue, normalized on an annual basis, that a company expects to receive from its customers for providing th...
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...
cARR stands for contracted (or committed) annual recurring revenue. It differs from ARR beause it takes into effect known future business and known fu...
The percentage of customers who end their relationship with a company in a given period. This is also referred to as "logo churn".
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. ...
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...
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...
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 sum of ARR from all new business subscriptions and upgrades
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, ...
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...
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...
Revenue retained, divided by total revenue form the previous time period
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 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.
Monthly Recurring Revenue (MRR) measures the monthly amount of total revenue that’s subscription-based or recurring in nature and highly likely to con...
The sum of losses minus gains in revenue from existing customers only (exclding new customers), divided by total revenue from the previous time period...
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 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 ...
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 ...
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 ...
Online Share of Voice (OSOV) measures the relative share of online mentions of a brand (company or product) - especially in Social Media forums - rela...
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...
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...
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...
Revenue per click is simply the average revenue for each individual click on all of your pay-per-click keywords and ads.
Retention rate is used to count customers and track customer activity irrespective of the number of transactions (or dollar value of those transaction...
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.
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...
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...
The number of free customers that become paid customers after a defined time period. Especially relevant for the Freemium revenue model.
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...
Cash that is immediately available is "working capital". Cash on hand, accounts receivable, short-term investments are all included, as well as accoun...
