STATSFORSTARTUPS
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 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...
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...
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. ...
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...
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...
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
Score Bessemer uses to define the attractiveness of a business investment Some benchmarks: 3-4 is good, 4-6 is better, >6 is best
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 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...
The economic value of a new lead.
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...
Monthly Recurring Revenue (MRR) measures the monthly amount of total revenue that’s subscription-based or recurring in nature and highly likely to con...
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...
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...
OEE is calculated by multiplying Performance (whether equipment is operating at the rated speed and output) X Quality (measuring the rate of defective...
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...
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 ...
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 ...
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...
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...
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 ...
