Plain-English definitions of AI, accounting, and SaaS-finance terms.
Percentage of new users who complete a key action that predicts long-term retention.
Average annualized revenue from a customer contract, excluding one-time fees.
The annualized value of all active recurring subscription contracts, the primary revenue metric for SaaS businesses.
The mean revenue generated from each customer or user account over a given period, measuring monetization efficiency.
The percentage of customers or revenue lost within a given period due to cancellations or non-renewals.
Monthly recurring revenue permanently lost when customers cancel their subscriptions.
Tracking a group of customers acquired in the same period to measure retention and revenue trends over time.
Monthly recurring revenue lost from existing customers through downgrades or seat reductions.
Recurring revenue lost from existing customers who downgrade their plan or reduce usage without fully canceling.
The total cost of acquiring a new paying customer, including all sales and marketing expenses divided by new customers acquired.
The total net revenue a business expects to earn from a customer over the entire duration of their relationship.
The number of unique users who engage with a product on a given day, measuring habit formation and the depth of daily engagement.
Cash received from customers for services not yet delivered, recorded as a liability until the service obligation is fulfilled.
The process of systematically communicating with customers to collect overdue payments, through a sequence of increasingly urgent reminders.
Composite metric quantifying how actively a customer uses a product, predicting retention and expansion.
Monthly recurring revenue added from existing customers through upsells, cross-sells, or seat additions.
Additional recurring revenue generated from existing customers through upsells, cross-sells, or increased usage.
The percentage of revenue remaining after subtracting the direct cost of goods sold, measuring production profitability.
The percentage of recurring revenue retained from existing customers excluding any expansion, capped at 100%.
A SaaS sales efficiency metric measuring how much new ARR is generated for every dollar spent on sales and marketing.
The number of unique users who engage with a product at least once within a 30-day period, measuring product reach and engagement.
The normalized monthly value of all active recurring subscriptions, the operational pulse metric for SaaS businesses.
The percentage of recurring revenue retained from existing customers including expansions, showing whether a customer base grows on its own.
Monthly recurring revenue generated from customers acquired for the first time in a given period.
Time required to recover the customer acquisition cost from a customer's gross profit contribution.
Entity that aggregates merchant payment acceptance under a master account, enabling sub-merchant onboarding.
Software infrastructure that processes, verifies, and authorizes online and in-person payment transactions between merchants and customers.
A prospective customer who has demonstrated buying intent through meaningful engagement with a product — such as using a key feature or hitting a usage threshold.
A metric measuring SaaS revenue growth quality by comparing new and expansion MRR gained to churned and contracted MRR lost.
A prospect that has been reviewed and confirmed by the sales team as meeting target criteria, ready for direct sales engagement.
