From ARR to expansion revenue, master the metrics that show how money flows into your business and where growth is coming from.
The average annualized revenue per customer contract, normalizing multi-year deals to show yearly value.
The average monthly or annual revenue generated per active user or account, calculated by dividing total revenue by total users.
The total value of recurring revenue normalized to a one-year period, calculated by multiplying MRR by 12.
The amount invoiced to customers in a period, representing cash that will be collected regardless of revenue recognition timing.
The total value of new contracts signed in a period, representing committed future revenue regardless of when it will be recognized.
Revenue lost when existing customers downgrade their plans or reduce usage, distinct from churn where customers leave entirely.
The ratio of daily active users to monthly active users, measuring how frequently users engage with a product.
Money received from customers for services not yet delivered, recorded as a liability until the service is provided and revenue can be recognized.
Additional revenue generated from existing customers through upsells, cross-sells, and increased usage beyond their original purchase.
The percentage of recurring revenue retained from existing customers, excluding expansion revenue and only accounting for churn and contraction.
The month-over-month percentage growth in qualified leads, serving as a leading indicator of future revenue.
The predictable revenue a subscription business expects to earn each month from active subscriptions.
The count of unique users who engaged with a product at least once in the past 30 days.
The percentage of recurring revenue retained from existing customers over a period, including expansion, contraction, and churn.
The change in Annual Recurring Revenue over a period, accounting for new customers, expansion, contraction, and churn.
The single metric that best captures the core value a product delivers to customers, aligning company focus.
The ratio of total sales pipeline value to revenue target, indicating whether there are enough opportunities to hit quota.
The average time from first prospect contact to deal close, measuring how long the sales process takes.
Growth in the number of paid users within existing customer accounts, a key driver of expansion revenue.
The average time users spend in your product per visit, measuring engagement depth.
The ratio of daily to monthly active users, measuring how often users return and engage with your product.
The total revenue value of a customer contract over its full term, including all recurring and one-time fees.
The percentage of sales opportunities that convert to closed won deals, measuring sales effectiveness.
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