Burn Rate
The burn rate represents the rate at which a company spends or loses money over a specific period. It indicates how quickly a company is depleting...
Welcome to the Arbo Glossary! This concise and comprehensive resource provides definitions and explanations of key accounting, finance, and startup terms.
The burn rate represents the rate at which a company spends or loses money over a specific period. It indicates how quickly a company is depleting...
Dollar-Based Net Expansion Rate (DBNER) is a metric used to measure the revenue growth generated from existing customers through add-ons, upselling,...
Fair Market Value (FMV) represents the current value of a company's common shares or other assets. For public companies, FMV can be determined by the...
Forecasts are data-driven estimates of a company's future financial performance. They are essential for making informed business decisions, setting...
A fractional CFO, a virtual or outsourced CFO, is an external financial professional or firm that provides part-time CFO services as needed
Free Cash Flow (FCF) is the cash generated by a company's operations after accounting for operating expenses and capital expenditures.
GMV is the total value of products sold through an eCommerce platform within a specific period.
KPIs are quantifiable metrics that help measure and evaluate the performance of a business.
LTM, also called trailing twelve months (TTM), is a period of the most recent twelve consecutive months used for financial analysis and valuation.
A lock-up period is a specific duration following an initial public offering (IPO) during which certain shareholders, including founders, employees,...
The magic number is a sales efficiency metric used by SaaS companies to assess the relationship between sales and marketing expenses and the...
MoM compares data or performance indicators between two consecutive months. It is commonly used to analyze growth rates, revenue changes, or other...
MRR is the sum of the revenue generated from recurring subscriptions or services within a single month.
NDR, also known as net revenue retention, measures the revenue retained from existing customers, accounting for both expansion and churn.
An outsourced controller is an external professional or firm that handles a company's accounting and financial management on a part-time or...
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...
Trailing twelve months (TTM), also referred to as the last twelve months (LTM), represents a consecutive twelve-month period immediately preceding...
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...
The burn multiple measures a company's capital efficiency. It is calculated by dividing the net cash burned (cash used by the company) by the net new...
Cohort analysis involves dividing customers or users into groups based on a shared characteristic or timeframe, such as their sign-up month.
A basis point equals one-hundredth of a percentage point (0.01%). It is commonly used in finance to measure small changes in interest rates, bond...
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