I thought about creating a post about this but felt having a permanent page dedicated to all those tricky acronyms would be super useful. I’ll continue to add to this as I think of them.
Annual Contract Value (ACV) – This is the average annualized revenue per customer contract which excludes any one time fees (such as onboarding).
Annual Recurring Revenue (ARR) – Used in SaaS businesses, ARR is the value of the contracted recurring revenue components of your term subscriptions normalized to a one year period. (Resource: How to calculate your ARR & MRR)
Bookings – The value of a contract between the company and the customer. It reflects a contractual obligation on the part of the customer to pay the company. (Source: a16z)
Burn rate – The rate at which cash is decreasing. (Source: a16z)
Customer Acquisition Cost (CAC) – The full cost of acquiring users, stated on a per user basis. Can be reported as blended, paid, organic, inorganic, etc (Resource: How to Calculate CAC)
Lifetime Value (LTV) – The present value of the future net profit from the customer over the duration of the relationship. (Source: a16z)
Marketing Contribution Model – The percentage of new bookings originated and influenced by marketing programming It includes all up-sell, cross-sell, and net new bookings. (Read more)
Marketing Influenced Bookings (MIB) – Bookings sourced by sales and supported by marketing engagement such as nurture campaigns and white glove events.
Marketing Originated Bookings (MOB) – Bookings sourced by marketing via lead generation activities (events, ads, web capture) and nurtured to be ready to sales. Most often closed with sales.
Product Marketing – The process of bringing a product to market and overseeing its overall success. (Read more)
Revenue – Recognized revenue is when the service is actually provided or ratably over the life of the subscription agreement. Deferred revenue is what you’re expecting from your booking, but have yet to receive. (Source: Profitwell)