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Average Revenue Per Account (ARPA) is the average revenue generated per account per year or month. It is used as an indication of revenue generation capability and the ability to meet targets. Executives and investors use this metric as an…

Customer Acquisition Cost (CAC) is the cost a business incurs to acquire a new customer. This includes the fully loaded costs associated with sales and marketing to attract a potential customer and to convince them to purchase. CAC is a fundamental…

The Subscribers metric counts the number of paid or non-paid users who have periodic access to a product or service. Most often, this metric refers to a subscription-based business model, for example, newspapers, magazines, phone, internet service,…

Annual Recurring Revenue (ARR) is the sum of all subscription revenue expressed as an annual value. For most companies, ARR is the sum of all new business subscriptions and upgrades (sometimes called expansion), minus downgrades (or contractions)…

Net Burn is the amount a company is losing per month - burning through their cash reserves. It occurs when a company’s operating costs are higher than their revenue. A company that is profitable and generating cash has a "negative Net Burn…

The Customer Lifetime Value (LTV) metric indicates the total revenue a business can reasonably expect from a single customer account. It considers a customer's revenue value and compares that number to the company's predicted customer…

Apdex is a measure of users' satisfaction with the response time of web applications or services. The Apdex Score is a value between 0 and 1, calculated based on three Apdex levels of user satisfaction: frustrated, tolerating, or satisfied.

Churn is the enemy of any subscription company. Churn is the number or percentage of subscribers to a service that discontinue their subscription to that service in a given time period.

Monthly Recurring Revenue (MRR) is the sum of all subscription revenue expressed as a monthly value. For most companies, MRR is the sum of all new business subscriptions and upgrades (sometimes called expansion), minus downgrades (or contractions)…

Average Revenue Per User (ARPU) is the average revenue generated per account per year or month. ARPU is a top-level metric, that can easily be normalized and is often cited as a comparative measure between similar companies.