STATSFORSTARTUPS
Annual Contract Value (or ACV) is the annual yearly revenue generated from each customer contract.
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...
The accounts receivable turnover KPI reflects the rate at which your business is successfully collecting payments due from your customers.
Average Selling Price (ASP) is the average price a given product is sold for.
The percentage of customers who end their relationship with a company in a given period. This is also referred to as "logo churn". ...
A Cost per Lead is an important metric that measures your marketing and sales campaigns' efficiency when generating new leads for your sales team. CPL...
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...
The sum of ARR from all new business subscriptions and upgrades
Fill rate refers to the percentage of customer demand that is met by immediate stock availability, without backorders, stockouts or lost sales. A ...
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,...
Score Bessemer uses to define the attractiveness of a business investment Some benchmarks: 3-4 is good, 4-6 is better, >6 is best
Gross Revenue Retention only considers the starting revenue minus any revenue lost through downsell or churn. The maximum possible value for Gross R...
Total sales or payment dollar volume transacted in a given period, used for eCommerce sellers
The economic value of a new lead.
How many potential customers are considered very likely to become actual customers. The Lead Velocity Rate is the growth percentage of qualified leads...
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...
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.
A Marketing Qualified Lead is one whom has been deemed more likely to become a customer compared to other leads. This qualification is based on which ...
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...
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 tha...
The sum of losses minus gains in revenue from existing customers only (exclding new customers), divided by total revenue from the previous time period...
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...
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...
Net new ARR equals ARR from new business acquisition and the incremental ARR from expansion and upsell.
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...
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 ...
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...
A metric used to understand customer loyalty and the amount of revenue that can reasonably be expected from an ongoign customer relationship, specific...
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.
Renewal is a small part of retention. The renewal process is the actions you take to get customers to sign up for another term once their contract is ...
Retention rate is used to count customers and track customer activity irrespective of the number of transactions (or dollar value of those transaction...
Run rate is the financial performance of a company, using current financial information as a predictor of future performance. The run rate functions a...
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...
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...
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...
Fully-loaded S&M spend to acquire $1 of new ARR from upsells & expansion Want the CAC to be as low as possible.In order to be a successful business ...
