ARR
Annual recurring revenue. A normalized annual view of recurring subscription or contract revenue, based on agreed definitions.
Glossary
Transaction revenue terms in plain English.
These definitions are intentionally practical. In a live engagement, formulas, cohort logic, revenue treatment, FX policy, and source hierarchy are agreed before the output pack is treated as final.Revenue terms
A shared language for customer-level diligence.
The glossary keeps recurring revenue, retention, churn, and customer movement terms short enough for deal-team review while preserving the definition boundaries that matter in an output pack.MRR
Monthly recurring revenue. A monthly recurring revenue run-rate used when the business tracks subscription revenue monthly.
ARR bridge
A movement schedule from beginning ARR to ending ARR, typically showing new logos, expansion, cross-sell, downsell, and churn.
GRR
Gross revenue retention. Revenue retained from the starting customer base before giving credit for expansion. It isolates base durability.
NRR
Net revenue retention. Revenue retained from the starting customer base after including expansion and cross-sell, then subtracting downsell and churn.
Cross-sell
Revenue from an existing customer buying an additional product, module, service line, or revenue category beyond the prior relationship.
Cohort retention
Revenue or logo retention for customers grouped by a shared start period, such as first purchase or contract start.
Customer concentration
How much revenue is generated by the largest customers, often shown as top 5, top 10, or top 20 customer share.
LTV
Lifetime value. An estimate of expected gross-profit contribution from a customer relationship, calculated only when churn, ACV or ARPA, margin, and cohort assumptions are reliable.
CAC
Customer acquisition cost. Sales and marketing cost associated with acquiring customers, used in CAC payback and LTV/CAC analysis when source data supports it.
Logo churn
The percentage or count of customers lost in a period, regardless of revenue size.
Dollar churn
The amount of revenue lost from downsell or churned customers during a period.
Downsell
Revenue contraction from an existing customer that remains active but spends less than before.
Expansion
Revenue growth from an existing customer, often from more seats, usage, contract scope, pricing, or deeper adoption of existing products.
Recurring vs. non-recurring
A split between revenue expected to repeat under contract or usage patterns and one-time services, setup, or project revenue.
Core formulas
Common formulas are simple only after definitions are locked.
The hard part is not the arithmetic. It is agreeing on source records, customer hierarchy, period logic, recurring flags, one-time revenue treatment, and exception handling.ARR bridge
Beginning ARR + New + Expansion + Cross-sell - Downsell - Churn = Ending ARR
Used to explain how customer-level recurring revenue moved between periods.
GRR
(Starting ARR - Downsell - Churn) / Starting ARR
Measures base revenue durability before expansion is added back.
NRR
(Starting ARR + Expansion + Cross-sell - Downsell - Churn) / Starting ARR
Measures net retained revenue from the starting customer base after expansion, cross-sell, contraction, and churn.
Apply the terms
See how the terms show up in the Data Pack.
The Data Pack page shows PPTX sections, chart page types, delivery rules, and metric explanations.01PPTX section names02Chart page types03Delivery rules04Metric explanations
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