Startup Metrics and KPIs Quiz

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

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

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

<p>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.</p> Signup and view all the answers

<p>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.</p> Signup and view all the answers

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

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

<p>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.</p> Signup and view all the answers

<p>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.</p> Signup and view all the answers

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

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

<p>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.</p> Signup and view all the answers

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

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

<p>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.</p> Signup and view all the answers

<p>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.</p> Signup and view all the answers

<p>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.</p> Signup and view all the answers

<p>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.</p> Signup and view all the answers

<p>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.</p> Signup and view all the answers

<p>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.</p> Signup and view all the answers