GASP
Outcome

Outcome Metrics

A result you set targets for. If this misses, someone has a hard conversation.

Test: "Is there a target on this in a board deck or comp plan?"

78 metrics across 12 departments.

Core (20)

MRR (Monthly Recurring Revenue)
The total predictable revenue from active subscriptions, normalized to a monthly value.
ARR (Annual Recurring Revenue)
The annualized value of recurring revenue. ARR represents the yearly run rate of subscription revenue.
ARPA (Average Revenue Per Account)
Average monthly recurring revenue per customer.
MRR Growth Rate
The month-over-month percentage change in MRR.
New MRR
MRR generated from brand new customers acquired in the period.
Expansion MRR
Additional MRR from existing customers through upgrades, add-ons, seat increases or price increases.
Churned MRR
MRR lost from customers who cancelled their subscriptions.
Contraction MRR
MRR reduction from existing customers who downgraded but didn't churn.
Reactivation MRR
MRR regained from customers who had churned and signed up again in the period.
Carry MRR
The part of beginning MRR that existing customers kept paying in the period: beginning MRR less churned and contraction MRR, before any expansion.
Net New MRR
The net change in MRR after accounting for all movements.
Total Customers
The number of active customers at the end of the period.
New Customers
The number of customers acquired in the period: customers whose first paid subscription started in the period.
Churned Customers
The number of customers lost in the period: customers whose last active subscription ended.
Net Revenue Retention (NRR)
The percentage of revenue retained from existing customers over a period, including expansion, contraction and churn. Also known as Net Dollar Retention (NDR).
Gross Revenue Retention (GRR)
The percentage of revenue retained from existing customers, excluding expansion revenue. Also known as Gross Dollar Retention.
Logo Churn Rate (Customer Churn)
The percentage of customers lost in a period. Also called customer churn or logo churn.
Revenue Churn Rate
The percentage of MRR lost to churn and contraction in a period. Also called MRR Churn Rate.
Gross Margin
Revenue minus cost of goods sold (COGS), as a percentage of revenue. Measures profitability after direct delivery costs.
Rule of 40
A heuristic that balances growth and profitability. A healthy SaaS company's growth rate plus profit margin should equal 40% or more.

Finance (18)

Revenue (GAAP)
Recognized revenue according to accounting standards.
Bookings
Total contract value signed in a period.
Billings
Amounts invoiced in a period.
ARR / MRR
The total predictable revenue from active subscriptions, normalized to a monthly value.
Consumption Revenue
Revenue earned as customers use the product: consumption drawn from a prepaid balance, billed as overage above a commitment or billed on demand with no commitment.
Usage Run-Rate
On-demand consumption revenue over the trailing three months, annualised. Also called Usage ARR.
ARR Including Usage Run-Rate
Annual Recurring Revenue (ARR) plus Usage Run-Rate: committed recurring revenue and annualised on-demand usage together. It is the figure Datadog, MongoDB and Confluent report as ARR.
Credit Breakage
The prepaid balance forfeited at expiry in the period.
Consumption Revenue Growth Rate
The month-over-month change in Consumption Revenue.
Consumption Net Revenue Retention
The consumption revenue of the customers active at period start, over a twelve-month period, divided by the same customers' consumption revenue over the twelve months before. Consumption Net Revenue Retention (Consumption NRR) reads year two over year one, Snowflake's basis.
Revenue per Employee
Annual Recurring Revenue (ARR) divided by total headcount.
Gross Margin
Revenue minus cost of goods sold (COGS), as a percentage of revenue. Measures profitability after direct delivery costs.
Operating Margin (EBIT Margin)
Operating income as a percentage of revenue.
EBITDA Margin
Earnings before interest, taxes, depreciation and amortization as a percentage of revenue.
Net Income Margin
Net income as a percentage of revenue.
Rule of 40
A heuristic that balances growth and profitability. A healthy SaaS company's growth rate plus profit margin should equal 40% or more.
Free Cash Flow (FCF)
Cash generated from operations minus capital expenditures.
Free Cash Flow Margin
FCF as a percentage of revenue.
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