The Encyclopedia of Subscription & SaaS Finance Terms and Metrics
There can be significant confusion over the term ARR, its use and the measurement of ARR because it feels and sounds like a measure of “revenue" in the context of revenue recognition. However, ARR is not necessarily a measure of recognized revenue.
|How to Calculate ARR||ARR Components|
MRR is an acronym for Monthly Recurring Revenue or, very simply, a measure of your predictable revenue stream. The primary purpose of MRR is to permit performance reporting across dissimilar subscriptions terms.
|CMRR||How to Calculate MRR||Committed MRR||MRR Definition|
|MRR Cohort||Bessemer MRR Growth||Contracted MRR|
Customer lifetime value, also referred to as LTV and CLV, is the estimate of the projection of gross margin contribution per customer over the life of the average customer.
|Total Contract Value (TCV)||Lifetime Value (LTV)||New 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.
|Finance for Entrepreneurs||Onboarding
|Cash Flow Forecasting||Bookings||Unbilled AR|
|SaaS Subscription Models||New Bookings||Deferred Revenue vs. Revenue Backlog|
For SaaS businesses, audit preparation can be stressful. Here's how to make it easier