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.

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.

Sessions per User counts the average number of sessions initiated by each user or visitor to your website/application. This metric is mainly used to determine how frequently users return to your website or app.

Sign Up Conversion Rate measures the percentage of your website visitors that convert or sign up in response to your marketing campaign. This conversion metric is used to specifically measure how many people respond by signing up out of all the people that have seen your call-to-action.

Trial Conversion Rate measures the percentage of users that have converted to a paid account from a trial period. Commonly referred to as Free Trial to Paid Conversion Rate, this metric indicates product value by measuring the number of users that find enough value in the product to pay for it. Trial Conversion Rates vary based on the type of trial you use. In SaaS, the standard practice is to either have a freemium product or a free trial period that usually spans a couple weeks.

Viral coefficient is the number of new users or customers the average customer generates. This can be through a formal business referrals program or simply through sharing and inviting others customers to use your product - but the key is that these users also convert to paying customers or users.

Website Bounce Rate measures the percentage of website sessions that are single-page sessions. A single-page session is when a user exits a website after interacting with a single page only. Interactions, also called Engagement Hits or interaction events by Google Analytics, can include: page views, social shares, e-commerce transactions, CTA interactions, and more.