ACV Growth Rate measures the percentage change in Average Contract Value over a specified period, serving as a critical indicator of your company's ability to extract increasing value from customer relationships. This metric reveals whether you're successfully moving upmarket, improving your value proposition, or effectively implementing pricing strategies. Unlike simple revenue growth, ACV Growth Rate isolates the per-customer value expansion, making it essential for understanding unit economics improvements and market positioning evolution.

Bessemer Efficiency Score is a measure of capital efficiency that tracks net new ARR against net burn for a given period. This metric showcases the incremental ARR dollars added for every dollar of burn, effectively measuring a company’s spending habits.

Bookings is a key sales metric that is calculated by taking the total dollar value, including subscription, implementation, and discounts, that a customer has committed to spend for a product or service within a specified period.

Burn Multiple is a capital efficiency metric that measures how many dollars a startup burns (spends) to generate each dollar of net new Annual Recurring Revenue (ARR). Calculated as Net Burn divided by Net New ARR, this metric evaluates the cost-effectiveness of revenue growth. A higher Burn Multiple indicates the company is spending more capital per dollar of growth, while a lower Burn Multiple indicates more efficient, capital-efficient growth.

CAC Payback Period is the time it takes for a company to earn back their customer acquisition costs. The value depends on how high the Customer Acquisition Cost (CAC) is and how much a customer contributes in revenue each month or each year.

Cash Conversion Score is used by investors to measure the return on invested capital for startups. It is calculated by dividing current ARR by the difference between total raised capital and cash on hand. Essentially, this metric gives the return on each dollar invested in a company.

DAU Growth Rate is the increase in Daily Active Users over a period of time, typically represented in a percentage. It can be a good indicator of successful sales and marketing efforts, as well as an indicator of good product-market fit.

Gross Revenue Retention (GRR) Rate is the percentage of recurring revenue retained from existing customers in a defined time period, including downgrades, and cancels. It does not include any expansion revenue. GRR is also commonly referred to as Gross Renewal Rate.

Net Annual Recurring Revenue (ARR) Added measures the net change in ARR during a period by combining all sources of ARR growth (new customers and expansion) and all sources of ARR contraction (churn and downgrades). This metric provides a comprehensive view of revenue momentum and reveals which business functions are driving growth or creating drag.

Net Profit Margin shows net profit as a percentage of total revenue. It gives the net profit earned for every dollar of revenue generated and is a good indicator of profitability and operating expense management.

The Rule of 40 is a SaaS financial metric that balances revenue growth versus profit margins. It’s a rule of thumb to quickly determine the health and/or attractiveness of your SaaS company.

Time to Value (TTV) measures the duration between when a user selects your product and the moment they initially realize the value of your product. Value usually means that the setup process is completed and the first usage of the product is successful.