Understanding SaaS: Commonly Used SaaS Terminologies and Acronyms

Commonly Used SaaS Terminologies and Acronyms

Introduction Many users, especially those new to cloud computing often wonder what all the tech buzz words and abbreviations mean. While you don’t really have to be an expert in cloud computing to sign up for a subscription, it’s important to understand the meaning of key terminologies and acronyms related to the … Read more

The Right SaaS Metrics for Each Stage of Your Company

The Right SaaS Metrics for Each Stage of Your Company

You probably know tons of different SaaS and subscription metrics, and you probably heard you should be measuring a few of them no matter what. Actually even we have told you that on the “5 metrics that every subscription business should be measuring” article. Guess what? That isn’t necessarily true. Don’t get … 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

ARR vs ACV vs TCV

ARR vs ACV vs TCV

What comes to your mind when you read the letters ARR? Well, if you’re in the financial market you may refer to the NYSE:ARR stock, if you’re a tech guy you may think of Application Request Routing; but for us SaaS professionals, ARR means two things only: Annual Run Rate and Annual Recurring … Read more