ACV Growth Rate is the change in the average contract value over a given time period when compared to the previous time period, typically represented by a percentage.

ARR Growth Rate is the change in annual recurring revenue over a given period, typically represented in a percentage. Steadily increasing ARR growth rate year over year is usually indicative of product-market fit.

The ARR Multiple in SaaS calculates the ratio between a company’s valuation and its Annual Recurring Revenue (ARR). This metric can be used to estimate the approximate value of a private SaaS company.

ARR as a Percentage of Total Revenue measures the percentage of your total revenue that comes from recurring revenue as opposed to one-time or non-subscription revenue.

Activation Rate helps companies determine how quickly and effectively their new users are achieving perceived value. It measures the number of new users that have performed a predetermined “key action” within a set period of time, where the key action is assumed or known to deliver initial customer value.

Annual Contract Value (ACV) is the dollar amount an average customer contract is worth to your company in one year. There tends to be less universal consensus on the definition of ACV compared to some other SaaS metrics, such as Annual Recurring Revenue. For example, some companies include one-time initial charges like setup or training in their ACV calculations, while others don’t.

Annual Recurring Revenue (ARR) is the sum of all subscription revenue expressed as an annual value. For most companies, ARR is the sum of all new business subscriptions and upgrades (sometimes called expansion), minus downgrades (or contractions) and cancelled subscriptions. Though not a Generally Accepted Accounting Principle (GAAP) value, it's the Revenue equivalent used by every SaaS company. ARR is used interchangeably with Monthly Recurring Revenue (MRR).

Apdex Score is a measure of users' satisfaction with the response time of web applications or services. The Apdex Score is a value between 0 and 1, calculated based on three Apdex Score levels of user satisfaction: frustrated, tolerating, or satisfied.

Average Revenue Per Account (ARPA) is the average revenue generated per account per year or month. It is used as an indication of revenue generation capability and the ability to meet targets.

Average Revenue Per User (ARPU) is a company's generated revenue that is averaged across all users and reported as a monthly or yearly value. ARPU is a top-level metric, that can easily be normalized and is often cited as a comparative measure between similar companies.

Base Net Burn gives a view of your Net Burn excluding customer acquisition costs (CAC).

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.