SaaS Metrics Library

What is the Gross Margin? Gross margin is a simple way to measure how much money a business keeps after covering the direct costs of making or delivering its product or service.…

What is Free Cash Flow? Free Cash Flow (FCF) is a financial metric that represents the amount of cash generated by a company’s operations that is available for distribution to investors, debt…

What is DSO? Days Sales Outstanding (DSO) is a financial metric that measures the average number of days it takes for a company to collect payment from its customers after a sale…

What is DPO? Days Payable Outstanding (DPO) is a financial metric that measures the average number of days it takes for a company to pay its suppliers or vendors after receiving goods…

What is COGS? COGS, or Cost of Goods Sold, is a fundamental financial metric that represents the direct costs associated with producing or purchasing the goods that a company sells during a…

What is CapEx? Capital expenditures (CapEx) are funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment. CapEx is often used to…

What is Annual Recurring Revenue (ARR)? Annual Recurring Revenue (ARR) is a key metric used in subscription-based business models, particularly in Software as a Service (SaaS) companies. ARR represents the anticipated annual…

What is Total Contract Value (TCV)? Total Contract Value (TCV) is a financial metric that represents the total anticipated revenue from a contract over its entire duration. It is a measure commonly…

What are R&D Expenses as a Percentage of Revenue? Research and Development (R&D) Expenses as a Percentage of Revenue is a financial metric that reflects the proportion of a company’s total revenue…

What are G&A Expenses as a Percentage of Revenue? General and Administrative (G&A) Expenses as a Percentage of Revenue is a financial metric that indicates the proportion of a company’s total revenue…

What is COGS Expense as a Percentage of Revenue? COGS (Cost of Goods Sold) Expense as a Percentage of Revenue is a financial metric that indicates the proportion of a company’s total…

What are Sales & Marketing Expenses as a Percentage of Revenue? Sales and Marketing Expenses as a Percentage of Revenue is a financial metric that indicates the proportion of a company’s total…

What is Average Revenue Per Customer (ARPC)? Average Revenue Per Customer (ARPC), also known as Average Revenue Per User (ARPU), is a key financial metric that represents the average amount of revenue…

What is Total Revenue? Total Revenue is a fundamental financial metric that represents the overall income generated by a business from its core operations. It encompasses all revenue streams, including sales of…

What is OPEX? OPEX, short for Operating Expenses, refers to the ongoing costs that a business incurs as part of its normal operations. These expenses are distinct from capital expenditures (CAPEX), which…

What is Monthly Recurring Revenue (MRR)? Monthly Recurring Revenue (MRR) is a key financial metric used in subscription-based business models, particularly in Software as a Service (SaaS) and other industries with recurring…

What is Invoice to Cash (I2C)? “Invoice to Cash” quantifies the time it takes for an invoice to be converted into cash. Business use I2C to evaluate the efficiency and effectiveness of…

What is Gross Profit ? Gross Profit is a financial metric that represents the amount of money a company retains after deducting the direct costs associated with producing or purchasing the goods…

What is the Gross Margin? Gross margin is a simple way to measure how much money a business keeps after covering the direct costs of making or delivering its product or service.…

What is Free Cash Flow? Free Cash Flow (FCF) is a financial metric that represents the amount of cash generated by a company’s operations that is available for distribution to investors, debt…

What is DSO? Days Sales Outstanding (DSO) is a financial metric that measures the average number of days it takes for a company to collect payment from its customers after a sale…

What is DPO? Days Payable Outstanding (DPO) is a financial metric that measures the average number of days it takes for a company to pay its suppliers or vendors after receiving goods…

What is COGS? COGS, or Cost of Goods Sold, is a fundamental financial metric that represents the direct costs associated with producing or purchasing the goods that a company sells during a…

What is CapEx? Capital expenditures (CapEx) are funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment. CapEx is often used to…

What is Cash Runway? Cash Runway is a financial metric that measures the number of months a company can continue operating without running out of cash. It represents the duration during which…

What is Burn Rate? The burn rate is the pace at which a new company is running through its startup capital ahead of it generating any positive cash flow. The burn rate…

What are Billings? “Billings” is a financial metric that measures the total amount of revenue generated from sales or services provided during a specific period, regardless of whether payment has been received.…

What is Annual Contract Value (ACV)? ACV (Annual Contract Value) refers to the total value of a customer contract, averaged over a year. It’s used in subscription-based businesses to measure the annual…