Data & metrics glossary

Average revenue per user (ARPU) is recurring revenue divided by active users or accounts. How to calculate ARPU and what it tells you.

Annual recurring revenue (ARR) is the yearly value of a subscription business's recurring revenue. How it is calculated and how it relates to MRR.

Burn rate is how fast a business spends its cash reserves each month. How to calculate gross and net burn, and how burn sets your runway.

Customer acquisition cost (CAC) is the average cost of winning one new customer. How to calculate CAC and read it against lifetime value.

Churn rate is the share of customers or revenue lost over a period. How to calculate customer churn and revenue churn, with a worked example.

Cohort retention tracks how a group of customers who joined at the same time stays active over the following months. How to read a retention curve.

Gross margin is the share of revenue left after the direct cost of delivering a product or service. How to calculate gross margin, with an example.

Customer lifetime value (LTV) estimates the total revenue or profit a customer brings over their relationship with a business. How to calculate LTV.

Monthly recurring revenue (MRR) is the predictable subscription revenue a business earns each month. How it is calculated and how to read it.

Net revenue retention (NRR) measures recurring revenue kept from existing customers, including expansion and churn. How to calculate NRR.

A profit and loss statement (P&L) summarises revenue, costs, and profit over a period. How to read a P&L and what each line means.

Weighted pipeline discounts each open deal by its probability of closing to give a realistic revenue forecast. How to calculate it from a CRM export.