KPI Glossary

A glossary of the KPIs you can calculate on Malartu.

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Written by Sean Steigerwald
Financial Metrics

ARMAU

Average Revenue per Monthly Active User
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ARPA

Average Revenue Per Account
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COGS for SaaS

Refers to the inventory costs of the goods a business has sold during a particular period
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COGS

Cost of Goods Sold
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Average Wallet Size

The total amount that a single customer can spend in a given period of time for a category of services (i.e. their budget).
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Donations

A variable sum of money that is paid outright, not necessarily in exchange for any good or service.
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Magic Number

A helpful metric brought about by Scale Venture Partners for calculating the sales and marketing efficiency of a SaaS company
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Average order value

Tracks the average dollar amount spent each time a customer places an order.
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Revenue Churn

The rate at which revenue goes away due to subscription cancellations.
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Customer Churn

The rate at which subscribers cancel their subscription to a recurring service.
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Time Between Purchases

This calculation shows you how often a typical customer goes before making a repeat purchase.
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Purchase Frequency

This calculation shows you the average number of times that a customer is making a purchase during your given time frame.
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Conversion Rate

The percentage of visitors who take a desired action
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ARPDAU

Average Revenue per Daily Active User
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Transactions

An instance of buying or selling something; a business deal.
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CLV

Customer Lifetime Value
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Repeat Customer Rate

The purchases from repeat customers divided by all purchases on the site for a given date range.
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Total Marketing Spend

An organization’s total expenditure on marketing activities.
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Sales Cycle

The time elapsed between starting from nothing and closing a deal.
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Total Addressable Market

This is the total amount of money spent in a startup’s defined space.
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ARPU

Average Revenue Per User
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CAC (Customer Acquisition Cost)

CAC is the cost to acquire a customer
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Operating Expense

An operating expense is an expense a business incurs through its normal business operations.
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Bookings

The value of a contract between the company and the customer.
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Revenue

Revenue is also referred to as income
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Gross Profit

Gross profit is a company's total revenue (equivalent to total sales) minus the cost of goods sold.
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SEM (Search Engine Marketing)

Short for “search engine marketing."
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CPU (Cost Per User)

The amount spent to acquire one user.
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CPE (Cost Per Engagement)

The amount spent on one engagement.
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CMGR

Compounded Monthly Growth Rate
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AMGR

Average Monthly Growth Rate
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Burn Rate

The rate a company is spending (burning) cash to finance operations
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Gross Margin

The ratio of the gross profit (revenue - cost of goods sold) to revenue
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Gross Margin (SaaS)

The ratio of the gross profit (revenue - cost of goods sold) to revenue
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Payback Period

The payback period is the number of months or years it takes to return the initial investment
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Runway

The length of time before a company runs out of cash
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Total Contract Value

The total value of the contract, and can be shorter or longer in duration.
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Revenue Growth

Revenue growth illustrates sales increases/decreases over time. It is used to measure how fast a business is expanding
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Net Margin

The ratio of net profits to revenues
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Revenue Run Rate

Run rate refers to the financial performance of a company based on using current financial information as a predictor of future performance.
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Marketplace revenue

The portion of GMV that the marketplace “takes”.
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Inventory

Inventory is the raw materials, work-in-process products and finished goods that are considered to be the business's assets
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Annual contract value

Measures the value of the contract over a 12-month period
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ARR

Annual Recurring Revenue
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ARR per customer

This is ARR divided by total number of customers.
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GMV

Gross Merchandise Value
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Net Sales

The amount of sales generated after deducting returns, allowances for damaged or missing goods and any discounts.
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Gross Sales

The amount of sales generated before deducting returns, allowances for damaged or missing goods and any discounts.
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Units Sold

Unit sales refers to the measure of the total sales that a firm earns in a given reporting period.
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Average Sales Price

An average selling price (ASP) is the price a certain class of good or service is typically sold for.
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MRR

Monthly Recurring Revenue
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MRR per customer

This is MRR divided by total number of customers
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Ad Revenue

Revenue from advertisements hosted by your business.
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Commissions

Commission is a sum of money that is paid upon completion of a task, usually selling a certain amount of goods or services.
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User Metrics

API

Application Program Interface
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Licenses

A software license is a document that provides legally binding guidelines for the use and distribution of software.
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Listings

The number of product listings on your marketplace or store.
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App Ratings

Ratings for your application given by consumers in the app store.
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Net Promoter Score

How likely is it that you would recommend [brand] to a friend or colleague?
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Active Users

Active Users is different for everyone.
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DAU over MAU

This is an excellent ratio for measuring your product’s stickiness.
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Downloads

The number of times an application is downloaded by a user.
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K-value

Viral Coefficient
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Content generated per user

Measures the pieces of content created by users on your application.
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Visits

A visit is anytime a visitor reaches your site from somewhere outside of your website domain.
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User Recency

This ratio is found by dividing the number of returning users in a period by the number of total current users
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Views

A page view is when a page on your site is loaded by a browser.
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DAU

Daily Active Users
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