Metric Glossary
Stop the "what does this number mean?" Slack threads. Define your business logic once, use it everywhere.
Annual Recurring Revenue (ARR)
VerifiedThe value of the contracted recurring revenue components of your term subscriptions normalized to a one-year period. Excludes one-time fees and professional services.
SUM(Active Subscription Value) * 12Customer Acquisition Cost (CAC)
VerifiedThe total cost of sales and marketing efforts that are needed to acquire a new customer. Includes ad spend, salaries, commissions, and tools.
(Total Sales + Marketing Expenses) / # New Customers AcquiredNet Revenue Retention (NRR)
DraftThe percentage of recurring revenue retained from existing customers over a given time period, including expansion revenue, downgrades, and cancels.
(Starting ARR + Expansion - Downsell - Churn) / Starting ARRDaily Active Users (DAU)
VerifiedNumber of unique users who have logged in or performed a key action (as defined in the product analytics tracking plan) within a 24-hour window.
COUNT(DISTINCT user_id) WHERE last_active_date = TODAYLead Conversion Rate
DeprecatedThe percentage of leads that are converted into opportunities. This metric tracks the efficiency of the SDR qualification process.
(Total Opportunities / Total Leads) * 100Gross Margin
VerifiedThe difference between revenue and cost of goods sold (COGS), divided by revenue. Indicates the profitability of the core business.
(Total Revenue - COGS) / Total Revenue