Adlega Blog:
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Churn Rate
Customer Churn Customer churn, or the churn rate, is a key metric that shows how many customers a company loses over a certain period. This can be measured monthly, annually, or even daily. For businesses with subscription-based models, this metric is crucial as it directly impacts revenue and long-term profitability. Importance of Churn Rate The…
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CAPEX in Software Development
Capital Expenditures (CAPEX) in software development refer to the money spent on creating or acquiring software assets that will benefit a business over the long term. Common Types of CAPEX in Software Development Software Development Costs: These are the expenses involved in creating new software applications or significantly upgrading existing ones. This includes coding, designing,…
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CAPEX in SaaS Companies
SaaS (Software as a Service) companies generally don’t need as much physical equipment as traditional businesses, but they do have their own types of capital expenditures (CAPEX), mostly related to technology and infrastructure. Common Types of CAPEX in SaaS Companies Software Development Costs: This is often the biggest expense for a SaaS company. It covers…
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CAPEX
Capital Expenditures (CAPEX) Capital Expenditures, or CAPEX, is the money that companies spend to buy or upgrade their long-term assets like buildings, factories, technology, and equipment. These are significant purchases expected to help the company grow over the years. Unlike everyday expenses (OPEX), which show up on the income statement, CAPEX appears on the balance…
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Bookings
Bookings in SaaS Bookings in a SaaS (Software as a Service) business are the total value of all customer contracts signed or orders received in a specific period, no matter when the money from those deals will be collected. SaaS Bookings Example Imagine a SaaS company signs a 3-year contract with a customer for $1,000…
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Billings
Billings Meaning In a SaaS (Software as a Service) business, billings are the total amount of money a company has charged its customers over a certain period. This is regardless of when the company will actually receive the revenue from these charges. Gross billings are the total cash billed to customers before any fees or…
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What is MAU: An Easy-to-Understand Gyde
Monthly Active Users: The Basics What is MAU?
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SaaS Bookings vs Billings vs Revenue: Everything You Should Know (Easy to Understand Guide)
What are Bookings in SaaS? Bookings in a SaaS (Software as a Service) biz is basically the total cash value of all the customer contracts we’ve signed up or orders we get in a certain period, no matter when we’ll actually see the revenue from those deals. SaaS Bookings example Imagine a SaaS company lands…
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Saas Business Model: Easy to Understand Guide
Getting to Know the SaaS Business Models What is a SaaS business model? The SaaS (Software as a Service) business is all about delivering software applications online instead of dealing with physical copies or local setups. Customers don’t buy a one-time software license; they subscribe to use the software regularly, usually with monthly or yearly…
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Churn Rate: Everything You Should Know
Key Takeaways What is the Churn? What is Customer Churn? The churn rate, or customer turnover rate, is a vital company metric. It shows how many customers are lost over time (monthly, annually, or less often weekly or daily (so-called the daily churn rate). This KPI is crucial for businesses, especially those with subscription-based models,…
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