Startup Metrics and KPIs Quiz

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What does MRR stand for and how is it calculated?

MRR stands for Monthly Recurring Revenue and it is calculated as the amount of revenue that recurs monthly.

Define Gross Profit and provide the formula to calculate it.

Gross Profit is the total revenue minus the cost of goods sold. The formula to calculate it is: Total Revenue - Cost of Goods Sold.

What is the formula for calculating ACV (Annual Contract Value)?

The formula for calculating ACV is the value that a contract will bring to your business annually.

What is the meaning of CAC (Customer Acquisition Cost) and how is it determined?

CAC (Customer Acquisition Cost) is the average cost to acquire a customer. It is determined by dividing the total cost of acquiring customers by the total number of new customers. Signup and view all the answers

Explain the concept of MoM (Month-on-Month Growth) and how it is calculated.

MoM (Month-on-Month Growth) is the rate of growth from month to month, comparing the current month or past 30 days to the previous month or last 31 to 60 days. Signup and view all the answers

What is the formula for calculating the Compounded Monthly Growth Rate (CMGR)?

CMGR = (Latest Month/First Month) ^ (1 / # of Months) - 1 Signup and view all the answers

How is the Monthly Churn Rate (MCR) calculated?

MCR = Lost customers this month / prior month total Signup and view all the answers

What does GCR (Gross Churn Rate) measure and how is it calculated?

GCR measures the MRR lost in a given month relative to the MRR at the beginning of the month. It is calculated as MRR lost in a given month / MRR at the beginning of the month. Signup and view all the answers

Define the Monthly Cash Burn Rate and provide the formula to calculate it.

Monthly Cash Burn Rate is the amount of money spent per month (gross). It is calculated as the total monthly expenses plus any other cash outlays. Signup and view all the answers

What is the formula for calculating the Net Churn?

Net Churn = (MRR lost - MRR from upsells) this month / MRR at the beginning of the month Signup and view all the answers

What does NPS stand for and what does it measure?

NPS stands for Net Promoter Score, and it measures how likely a user is to recommend your product to a friend. Signup and view all the answers

Define TAM (Total Addressable Market) and explain its significance.

TAM refers to the revenue opportunity available for a product, and it is significant for determining the potential market size and revenue potential for a product or service. Signup and view all the answers

What is the formula for calculating the Annual Run Rate (ARR)?

ARR = Projection of current MRR into the future, annualized Signup and view all the answers

Explain the concept of Network Effects and provide an example.

Network Effects refer to the effect of one user on the value of that product to other people, for example, Metcalfe’s Law. Signup and view all the answers

What is the definition of Virality and what does the Viral coefficient measure?

Virality refers to the viral coefficient, which is the average number of invitations sent by an existing user multiplied by the conversion rate of the invitation. Signup and view all the answers

What does MRR stand for and how is it calculated?

MRR stands for Monthly Recurring Revenue, and it is calculated as the amount of revenue a business generates on a monthly basis from its subscription-based customers. Signup and view all the answers

Define CAC (Customer Acquisition Cost) and how is it determined?

CAC refers to the cost, on average, to acquire a customer, and it is determined by dividing the total costs associated with acquiring customers by the total number of new customers acquired. Signup and view all the answers

What is LTV (Lifetime Value) and how is it calculated?

LTV, or Lifetime Value, is the prediction of the net profit from the entire future relationship with a customer. It is calculated by multiplying the average purchase value by the average purchase frequency and then multiplying that by the average customer lifespan. Signup and view all the answers

What is Gross Profit and how is it calculated?

Gross Profit is the total revenue minus the cost of goods sold. It is calculated by subtracting the cost of goods sold from the total revenue. Signup and view all the answers

Explain the concept of DAU (Daily Active Users) and how it is calculated.

DAU, or Daily Active Users, refers to the number of users that return to a startup’s site or app on a daily basis. It is calculated by counting the unique users who engage with the site or app within a 24-hour period. Signup and view all the answers