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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...

Bookings

What are Bookings? Bookings are the sum of all committed dollars in your new contracts. SaaS Bookings Example In January, you have 4 contracts: Contract 1 is a month-to-month contract (cancelable at the end of each month) that pays $1,000 per month. Your booking is...

Billings

Billings are the amounts that you invoice your customers. EXAMPLE: In January, you have a total of 6  customers: Customer 1 has a month-to-month contract (cancelable at the end of each month) and pays $1,000 per month. Each month, you bill $1,000. Your January billing...

Backlog

Backlog consists of revenue that is committed by the customer in advance of their service and is not yet invoiced. While your business has a commitment from the customer to pay, an invoice hasn’t been sent to the customer and the products or services haven’t been...