Revenue is defined as the income generated through a business’ primary operations. It is often referred to as “top line” and is shown at the top of an income statement.

Revenue per Employee is a measure of the total Revenue for the last twelve months (LTM) divided by the current number of Full-Time Equivalent employees. Also known as Revenue to Employee Ratio, this ratio is among the most universally applicable and is often used to compare companies within the same industry.

The SaaS Magic Number is a ratio showing yearly recurring revenue growth gained for every sales and marketing dollar spent. It indicates the level of operational efficiency of a company, as well as the sustainability of sales and marketing expenditure.

SaaS Quick Ratio is used to measure the growth efficiency of a company, but is often overlooked by early stage entrepreneurs and investors. Think of SaaS Quick Ratio as a health measure of company growth.

Sales Cycle Length is the count of the number of days or months it takes on average to close a deal. This metric can be helpful when creating sales forecasts, measuring sales efficiency, and speaking with investors. It is often referred to as the Average Deal Cycle and is usually expressed in months.

A Sales Qualified Lead (SQL) is a prospect that meets certain conditions as defined by the sales process. SQLs are middle of the funnel, having been qualified first by marketing or a lead setting team, and are now ready to be moved to the next stage in the sales process.

Search Impression Share is the percentage of impressions won by an ad campaign or ad group or keywords, out of the total impressions the campaign is eligible for. Ad targeting, keywords, and ad scheduling all play a role in the SIS won.

Search Lost Impression Share (Budget) is the percentage of Search Impression Share lost out of the total eligible impressions, due to campaign budget. It is generally measured at the campaign level on digital advertising platforms.

Search Lost Impression Share (Rank) is the percentage of search impression share lost out of the total eligible impressions, due to Ad Rank. Ad Rank depends on factors such as relevant keywords and targeted ads.

SAM measures the revenue opportunity of capturing a specific market for a product or service within your limitations and reach.

Serviceable Obtainable Market (SOM) measures the realistic revenue potential of a product or service in a particular market.

A Session, sometimes called a Visit, is the set of interactions, or web requests, made within a given time frame by a single user visiting a specific website. A single Session often contains multiple activities, such as page views, events, or transactions. In web analytics, a session is either capped by exiting the website or by a period of user inactivity.