We track a wide range of metrics on our corporate dashboard. Many definitions are self evident but some are not.
Recurring revenue recognized in current month multiplied by 12.
IACV per won deal.
All bookings in period (including multiyear); bookings is equal to billings with standard payment terms.
Current Period subscription bookings which will result in revenue over next 12 months.
Value of new bookings from new and existing customers that will result in recurring revenue over the next 12 months less any non-renewals, cancellations or any other decrease to annual recurring revenue. Excluded from IACV are bookings that are non-recurring such as professional services, training and non-recurring engineering fees (NRE). Also equals ACV less renewals.
Current period revenue from customers present 12 months prior divided by revenue from 12 months prior.
Remaining cohorts from Actual Subscription customers active as of 12 months ago multiplied by revenue from 12 months ago divided by actual Subscription customers as of date 12 months prior multiplied by revenue from 12 months ago. Industry guidance suggests median gross dollar churn performance for SaaS/subscription companies is 8% per year
Total Sales & Marketing Expense/Number of New Customers Acquired
The Customer Lifetime Value to Customer Acquisition Ratio (LTV:CAC) measures the relationship between the lifetime value of a customer and the cost of acquiring that customer. A good LTV to CAC ratio is considered to be > 3.0.
Current Month [Metric] /# of Reps on board for at least 90 days prior to start of period.
IACV for trailing three months/Sales & Marketing Spend over trailing months -6 to months -4 (one quarter lag). Industry guidance suggests a good Magic Number is > 1.0.
Marketing Qualified Lead
Sales Qualified Lead
Marketing expense divided by # MQLs
IACV / sales and marketing spend. Industry guidance suggests that average performance is 0.8 with anything greater than 1.0 being considered very good.
IACV / marketing spend
IACV / sales spend
Customer Lifetime Value = Average Revenue per Year x Gross Margin% x 1/(1-K) + GxK/(1-K)^2; K = (1-Net Churn) x (1-Discount Rate). GitLab assumes a 10% cost of capital based on current cash usage and borrowing costs.
TCV less Total Operating Expenses. This metric tracks cash net cash consumed excluding changes in working capital.
Purpose: We review all key operating metrics that either i) appear in the Corporate metrics sheet or ii) are included in the our Operating Model. The goal for the monthly meeting is to understand month to month variances as well as variances against the plan, forecast and operating model.
Timing: Meetings are monthly starting on the 10th day after month end.
Invitees: Mandatory attendees are the owner of the metric and eteam functional representative and the CFO. Optional attendees are the rest of the e-team and anyone who has an interest in the metric.
Process: The owner of the metric(s) drives the meeting and is responsible for updating the doc with necessary data, links, MRs, etc. Calendar invites should be editable by invitees. Use the CFO Zoom number.