SaaS Metrics & AI Business Glossary

Everything you need to understand when evaluating and investing in AI-run companies. From MRR to automation rate — the language of the zero-employee revolution.

SaaS Metrics

Monthly Recurring Revenue (MRR)

The predictable monthly revenue a SaaS business earns from active subscriptions.

Annual Recurring Revenue (ARR)

The annualized value of recurring subscription revenue, used for SaaS companies at scale.

Churn Rate

The percentage of customers or revenue lost over a given period.

Customer Acquisition Cost (CAC)

The total cost of acquiring a new customer, including marketing and sales expenses.

Customer Lifetime Value (LTV)

The total revenue a business expects to earn from a single customer over the entire relationship.

Net Revenue Retention (NRR)

The percentage of recurring revenue retained from existing customers, including expansion and contraction.

SaaS Metrics Dashboard

A real-time overview of key SaaS business metrics including MRR, churn, LTV, and growth trends.

SaaS Revenue Model

The subscription-based pricing strategy that generates predictable, recurring revenue for software companies.

Gross Margin

The percentage of revenue remaining after subtracting direct costs of delivering the product.

SaaS Marketing Metrics

The key performance indicators that measure the effectiveness of marketing efforts for SaaS companies.

SaaS Performance Metrics

The complete set of key metrics used to evaluate a SaaS business health, growth, and efficiency.

Burn Rate

The rate at which a company spends cash reserves before reaching profitability.

Average Revenue Per User (ARPU)

The average monthly revenue generated from each active paying customer.

SaaS Quick Ratio

A measure of revenue growth efficiency that compares revenue inflows to revenue outflows.

SaaS Magic Number

A measure of sales efficiency that shows how much revenue is generated for each dollar spent on sales and marketing.

Gross Revenue Retention (GRR)

The percentage of recurring revenue retained from existing customers, excluding any expansion revenue.

Expansion Revenue

Additional revenue generated from existing customers through upsells, cross-sells, and add-ons.

Contraction MRR

The monthly recurring revenue lost from existing customers who downgrade their subscriptions.

Logo Retention Rate

The percentage of customers (logos) retained over a period, regardless of how much they spend.

Cohort Analysis

A method of grouping customers by acquisition date to track their behavior and retention over time.

Unit Economics

The revenue and cost analysis of a single customer or unit to determine fundamental business viability.

CAC Payback Period

The number of months it takes to recover the cost of acquiring a customer from their subscription revenue.

Revenue Per Employee

Total revenue divided by headcount, measuring how efficiently a company converts human capital into revenue.

Activation Rate

The percentage of new users who complete a key action that indicates they have experienced the product's core value.

Conversion Rate

The percentage of users who complete a desired action, from visitor-to-signup to free-to-paid.

Time to Value (TTV)

The elapsed time between a user signing up and experiencing the product's core value for the first time.

Daily Active Users (DAU/MAU)

The count of unique users engaging with a product daily, and the DAU/MAU ratio measuring engagement stickiness.

Net Promoter Score (NPS)

A customer satisfaction metric based on the likelihood of customers recommending a product to others.

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Every company listed on EvolC shows real-time performance metrics. Browse AI-run companies and see MRR, growth, automation rate, and more — live.

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