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Annual Recurring Revenue (ARR)

What is Annual Recurring Revenue? Annual Recurring Revenue (ARR) looks at how recurring or subscription-based revenue grows over time. ARR is a good metric for long-term planning for subscription models that have longer contract durations. Annual recurring revenue...

Unit Economics

What is unit economics? Unit economics refers to the financial numbers around a single “unit,” which typically refers to a single customer. Many of the metrics in the Churnopedia are the basics of unit economics, especially: Customer Lifetime Value (CLTV) Customer...

Average Revenue Per User/Unit (ARPU)

Average Revenue Per User or Unit (ARPU) is the revenue generated per user or unit within a time period, usually monthly or yearly. ARPU = Total Revenue # of Users or Units EXAMPLE: In January, you report revenue of $500,000 with 10,000 users. Your monthly ARPU is $50...

Annual Contract Value (ACV)

Like annual recurring revenue (ARR), annual contract value (ACV) is used by SaaS business owners to get a better grasp of their organization’s health, though some disagree on how exactly to calculate annual contract value.  Let’s clear things up by examining what is...