What is new bookings in a SaaS business? New Bookings typically refers to the portion of bookings attributed to new customers, or more specifically new contracts with new or existing customers. For example, ABC, Inc. has been a client since 2005, but a new division signed a new term agreement. The bookings associated with this…

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What is Total Contract Value (TCV) in SaaS? The Total Contract Value (TCV) metric summarizes the contractual value of fully executed term contracts. Total Contract Value can differ from Bookings in that Bookings may be defined to include only certain items and only the first year of a multi-year agreement, whereas Total Contract Value is…

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Total Bookings Definition for SaaS Total Bookings is the value of all transactions in a specified period of time, including all subscription and non-subscription (one-time) transactions. Typically, “value” is the total revenue (recognizable or not) associated with each transaction, as opposed to amount invoiced in the period. However, since there is no standard definition for…

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Customer Lifetime Revenue Definition for SaaS Customer Lifetime Revenue is a simpler variant of the Customer Lifetime Value calculation. Customer Lifetime Revenue is an estimate of the lifetime revenues for a customer. The Customer Lifetime Revenue is not the actual historic reportable revenue, rather an estimate or projection of all revenues during the customer lifetime.…

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What is Customer Lifetime Value (CLV)? Like other SaaS metrics, Customer Lifetime Value can mean different things to different people. Taken literally, it would seem to imply a total of actual revenues minus expenses for a customer. However, CLV concepts predate the emergence of the subscription model as a preferred software and content delivery model,…

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LTV Definition for SaaS LTV, also referred to as CLV, is short for Lifetime Value, which is short for Customer Lifetime Value. Lifetime Value is an estimation of the aggregate gross margin contribution of the average customer over the life of the customer. < Back to SaaSpedia Index From Our Blog Ready to start modernizing…

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What is Churn? While there are many variations of churn, churn is always a measure of attrition or loss and is the most widely tracked and discussed SaaS and subscription metric. Churn can measure lost customers, contracts, ARR, MRR, GAAP revenue, contract value, or bookings. Churn is typically expressed as a rate or a ratio…

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