The Encyclopedia of Subscription & SaaS Finance Terms and Metrics
There can be significant confusion over the term itself, the use, and the measurement of Annual Recurring Revenue because it feels and sounds like a measure of “revenue" in the context of revenue recognition. However, Annual Recurring Revenue is not necessarily a measure of recognized revenue. Learn More
Related terms:
| How to Calculate ARR | ARR Components |
MRR is an acronym for Monthly Recurring Revenue, or very simply a measure of your predictable revenue stream. A primary purpose of MRR is to permit performance reporting across dissimilar subscriptions terms. Learn More
Related terms:
| CMRR | How to Calculate MRR | Committed MRR | MRR Definition |
| MRR Cohort | Bessemer MRR Growth | Contracted MRR |
While there are many variations of churn, churn is always a measure of attrition or loss, and it can be lost customers, contracts, MRR, GAAP revenue, contract value, or bookings. Learn More
Related terms:
| MRR Churn | Revenue Churn |
Renewal Rate is measure of retention. Renewal rate is expressed as a percentage. Renewal Rate can mean different things to different people. Learn More
Related terms:
| Renewal Bookings | Life Cycle Renewal Rate | MRR Renewal Rate |
How do you project revenues in a SaaS or subscription business? Learn More
Related terms:
| Revenue Backlog | Revenue Projections | Revenue Recognition |
| Customer Revenue | Deferred Revenue |
Lifetime Value, also referred to as LTV and CLV, is short for Customer Lifetime Value, the estimate of the projection of gross margin contribution per customer over the life of the average customer. Learn More
Related terms:
| Total Contract Value (TCV) | Lifetime Value (LTV) | New Bookings |
| Total Bookings |
You manage cash flow, but "finance" is left to the accountant that prepares your taxes. If this is you, read on and be sure to watch the essential finance concepts video. Learn More
Related terms:
| Finance for Entrepreneurs | On Boarding |
Normalized Contracts |
| Cash Flow Forecasting | Bookings | Unbilled AR |
| SaaS Subscription Models | New Bookings | Deferred Revenue vs. Revenue Backlog |
SaaSOptics is a complete B2B subscription management platform that provides subscription and order management, GAAP revenue recognition, e-invoicing and payments, financial reporting and robust subscription metrics and analytics. SaaSOptics is a cloud-based solution that enables emerging and growth subscription businesses the ability to eliminate their dependency on spreadsheets and streamline their financial operations, reporting and performance metrics.
Unlike most subscription management providers, SaaSOptics is easy to use, very affordable and takes 2-4 weeks to implement. SaaSOptics serves over 400 customers worldwide managing over $2.5B in revenue.
SaaSOptics industry-leading performance metrics and analytics delivers all the subscription reporting you need such as ARR/MRR waterfalls, churn and retention rates, customer lifetime value (CLV), and a variety of cohorts. SaaSOptics provides deep integration with Salesforce, QuickBooks, Stripe and Recurly, providing our customers with the efficiency, accuracy and insight they need to manage and grow their business.
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