Your SaaS terms glossary

A business model providing basic services for free and charging for premium features.

A freemium model offers basic services for free with optional premium features for a price.

Understand gross margin and its importance for SaaS companies.

A key metric for measuring customer retention in SaaS by calculating recurring revenue from existing customers.

The process through which a private company becomes publicly traded by offering shares to the public.

Understand LTV: The key metric for customer value prediction.

LTV/CAC is key in assessing customer value vs cost in SaaS.

A financial ratio measuring a company's debt against its assets or equity.

Understand Logo Churn and its impact on business growth and retention.

Learn about logo retention, a crucial SaaS metric for client base health.

Understand MRR: key for subscription growth & financial stability.

A product with just enough features to gather feedback from early customers.

Market Cap measures a company's total market value, crucial for assessing financial stability.

The degree to which a product satisfies strong market demand; essential for startup success.

Market penetration measures a product's market share, crucial for growth.

Learn the importance of NOPAT, a key profitability metric for SaaS firms.

Net Dollar Churn is a metric indicating net revenue change from existing customers.

Discover net margin and why it's vital for SaaS growth.

A metric that measures customer loyalty based on their likelihood to recommend a company.

Net revenue is the total revenue minus returns, allowances, and discounts, providing a clearer picture of actual income.

Learn about non participating preferred shares in business.

Learn about OBV, its importance in SaaS, and how to compute it.