Average Revenue Per Account

Average Revenue Per Account ARPA What is it? How to calculate it? What is ARPA? Average Revenue per Account (sometimes known as Average Revenue per User or per Unit), usually abbreviated to ARPA, is a measure of the revenue generated per account, typically per year or month. You could also say that … Read more

Monthly Recurring Revenue

montly recovery

Monthly Recurring Revenue MRR What is it? How to calculate it? What is MRR? Monthly Recurring Revenue, almost always referred as MRR, is probably the most important metric at all of any subscription business. It’s what makes this business model so great. Once you acquire a new customer you got an recurring … Read more

Customer Acquisition Cost

CAC

Customer Acquisition Cost CAC What is it? How to calculate it? It’ll be tough for any business to succeed if it doesn’t have any customers. Customers play one of the most important roles in the business as they often function as brand ambassadors and keep the business running. In fact, customers are … Read more

Months to Recover CAC

recovery

Months to Recover CAC What is it? How to calculate it? Months to Recover CAC Months to recover CAC is a measure of time that demonstrates how long do you take to recover the amount of money invested on customer acquisitions (CAC). It tells your break even on a specific customer, group … Read more

Benchmark for B2B SaaS sales cycles

Benchmark for B2B SaaS sales cycles

When it comes to B2B SaaS sales cycles, it’s never easy to know if you’re doing good. How many days does it take to close a deal? What factors and characteristics affect this number? The first thing to understand is that SaaS sales cycle can vary dramatically, depending on a few factors. … Read more

Bookings vs Revenues vs Billings

Bookings vs Revenues vs Billings

Terms like revenue, billing, collections, bookings are often used interchangeably and although interrelated, they mean different things in the world of SaaS. Booking, revenues and billings are among the three most commonly used metrics that’s why we have dedicated a separate post for these three. For the sake of explaining, let’s consider … Read more

EBITDA vs Gross Margin vs Net Profit

EBITDA vs Gross Margin vs Net Profit

We recently discussed how revenue should be recognized in a SaaS company, comparing it to bookings and billings, and it’s pretty straight forward. Profit is harder to define. There are multiple ways to keep track of it, with metrics such as Operating Income, Net Income, Free Cash Flow, Cash Flow or something … Read more