Formula version history

CAC = Sales and marketing spend / New customers acquired

Initial tracked version. Future changes will show formula diffs here.

CAC payback = CAC / (ARPA * Gross margin)

Initial tracked version. Future changes will show formula diffs here.

LTV = ARPA * Gross margin / Monthly churn rate

Initial tracked version. Future changes will show formula diffs here.

LTV:CAC = LTV / CAC

Initial tracked version. Future changes will show formula diffs here.

NRR = (Beginning revenue - churn - contraction + expansion) / Beginning revenue * 100

Initial tracked version. Future changes will show formula diffs here.

Gross margin % = (Revenue − COGS) / Revenue × 100

Initial tracked version. Future changes will show formula diffs here.

EBITDA margin % = EBITDA / Revenue × 100

Initial tracked version. Future changes will show formula diffs here.

FCF margin % = Free cash flow / Revenue × 100

Initial tracked version. Future changes will show formula diffs here.

GRR = (Beginning revenue - churn - contraction) / Beginning revenue * 100

Initial tracked version. Future changes will show formula diffs here.

Logo churn = Churned customers / Starting customers; gross revenue churn = lost MRR / starting MRR

Initial tracked version. Future changes will show formula diffs here.

ARR = MRR * 12; ARPA = MRR / paying accounts; ACV = annual contract value / annual contracts

Initial tracked version. Future changes will show formula diffs here.

Rule of 40 = Revenue growth % + EBITDA margin %

Initial tracked version. Future changes will show formula diffs here.

Magic Number = (Current quarter ARR - Prior quarter ARR) / Prior quarter sales and marketing spend

Initial tracked version. Future changes will show formula diffs here.

Burn multiple = Net burn / Net new ARR

Initial tracked version. Future changes will show formula diffs here.

Quick ratio = (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR)

Initial tracked version. Future changes will show formula diffs here.

Revenue growth % = (Current revenue − Prior revenue) / Prior revenue × 100

Initial tracked version. Future changes will show formula diffs here.

Revenue per employee = Revenue / FTEs

Initial tracked version. Future changes will show formula diffs here.

Rule of X = (Revenue growth % × growth weight) + Free cash flow margin %

Initial tracked version. Future changes will show formula diffs here.

Net new ARR = New ARR + Expansion ARR - Churned ARR - Contraction ARR

Initial tracked version. Future changes will show formula diffs here.

Runway (months) = Cash on hand / Monthly net burn

Initial tracked version. Future changes will show formula diffs here.

Pipeline coverage = Qualified pipeline / Revenue target

Initial tracked version. Future changes will show formula diffs here.

Sales velocity = Opportunities × Average deal size × Win rate / Sales cycle days

Initial tracked version. Future changes will show formula diffs here.

Win rate = Won deals / Total closed deals × 100

Initial tracked version. Future changes will show formula diffs here.

GTM efficiency = (Net new ARR / Sales and marketing spend) × NRR × Gross margin

Initial tracked version. Future changes will show formula diffs here.

New ARR per GTM FTE = Net new ARR / GTM FTEs

Initial tracked version. Future changes will show formula diffs here.

Ramped quota capacity = Ramped AEs × Average quota per AE × Attainment assumption

Initial tracked version. Future changes will show formula diffs here.

Ramped quota coverage = Ramped quota capacity / Bookings plan

Initial tracked version. Future changes will show formula diffs here.

New ARR mix = Each source ARR / Total new ARR × 100; concentration = largest single-source share

Initial tracked version. Future changes will show formula diffs here.