Resources

The Arbo Glossary

Welcome to the Arbo Glossary! This concise and comprehensive resource provides definitions and explanations of key accounting, finance, and startup terms.

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    Finance

    Fractional CFO

    A fractional CFO, a virtual or outsourced CFO, is an external financial professional or firm that provides part-time CFO services as needed

    Arbo Team Jul 19, 2023
    Finance

    Free Cash Flow (FCF)

    Free Cash Flow (FCF) is the cash generated by a company's operations after accounting for operating expenses and capital expenditures.

    Arbo Team Jul 19, 2023
    Finance

    Gross Merchandise Value (GMV)

    GMV is the total value of products sold through an eCommerce platform within a specific period.

    Arbo Team Jul 19, 2023
    Finance

    Key Performance Indicator (KPI)

    KPIs are quantifiable metrics that help measure and evaluate the performance of a business.

    Arbo Team Jul 19, 2023
    Finance

    Last Twelve Months (LTM)

    LTM, also called trailing twelve months (TTM), is a period of the most recent twelve consecutive months used for financial analysis and valuation.

    Arbo Team Jul 19, 2023
    Finance

    Lock-Up Period

    A lock-up period is a specific duration following an initial public offering (IPO) during which certain shareholders, including founders, employees,...

    Arbo Team Jul 19, 2023
    Finance

    Magic Number

    The magic number is a sales efficiency metric used by SaaS companies to assess the relationship between sales and marketing expenses and the...

    Arbo Team Jul 19, 2023
    Finance

    Month Over Month (MoM)

    MoM compares data or performance indicators between two consecutive months. It is commonly used to analyze growth rates, revenue changes, or other...

    Arbo Team Jul 18, 2023
    Finance

    Monthly Recurring Revenue (MRR)

    MRR is the sum of the revenue generated from recurring subscriptions or services within a single month.

    Arbo Team Jul 18, 2023
    Finance

    Net Dollar Retention (NDR)

    NDR, also known as net revenue retention, measures the revenue retained from existing customers, accounting for both expansion and churn.

    Arbo Team Jul 18, 2023
    Finance

    Outsourced Controller

    An outsourced controller is an external professional or firm that handles a company's accounting and financial management on a part-time or...

    Arbo Team Jul 18, 2023
    Finance

    Runway

    Runway refers to when a company can operate without running out of cash. It is calculated by dividing the available cash balance by the average...

    Arbo Team Jul 18, 2023
    Finance

    Trailing Twelve Months (TTM)

    Trailing twelve months (TTM), also referred to as the last twelve months (LTM), represents a consecutive twelve-month period immediately preceding...

    Arbo Team Jul 18, 2023
    Finance

    Year to Date (YTD)

    Year to Date (YTD) refers to the period from the beginning of the current year or fiscal year to the present date. It is used to analyze financial...

    Arbo Team Jul 18, 2023
    Operations

    Capital Expenditures (CapEx)

    Capital expenditures refer to the funds a company spends to acquire, maintain, or enhance long-term assets. These assets can include tangible items...

    Arbo Team Jul 18, 2023
    Operations

    Cost Per Click (CPC)

    Cost per click is a pricing model used in online advertising where advertisers pay each time a user clicks on their ad. It is commonly used in...

    Arbo Team Jul 18, 2023
    Operations

    Cross-Selling

    Cross-selling refers to selling additional products or services to existing customers.

    Arbo Team Jul 18, 2023
    Operations

    Customer Acquisition Cost (CAC)

    Customer Acquisition Cost (CAC) is the cost to acquire a new customer. It is the total of all expenses, whether in Sales and Marketing allocated...

    Arbo Team Jul 18, 2023
    Operations

    Full-Time Employee (FTE)

    A full-time employee (FTE) is an individual who works a standard number of hours considered full-time within a particular organization or jurisdiction

    Arbo Team Jul 18, 2023
    Operations

    Go-to-Market (GTM)

    A go-to-market (GTM) strategy is a detailed plan that outlines how a company will introduce and promote its products or services to its target market.

    Arbo Team Jul 18, 2023
    Operations

    Net Promoter Score (NPS)

    NPS is a customer satisfaction metric that measures the likelihood of customers recommending a product or service to others. It provides insights...

    Arbo Team Jul 18, 2023
    Operations

    Payback Period

    The payback period refers to the time required to recoup the customer acquisition cost (CAC) through revenue generated by the newly acquired...

    Arbo Team Jul 18, 2023
    Operations

    Ramp Time

    Ramp time represents the period required for a new salesperson to become fully productive and achieve their sales targets. It accounts for the time...

    Arbo Team Jul 18, 2023
    Revenue

    Annual Contract Value (ACV)

    ACV refers to the total value of a customer's annual contract or subscription with a business, regardless of the contract's duration. It is a metric...

    Arbo Team Jul 18, 2023
    Revenue

    Churn

    Churn represents the rate customers stop using a product or service or end their subscription. It is a critical metric for businesses, especially...

    Arbo Team Jul 18, 2023
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