Adlega Blog:

What is Free Cash Flow? Free Cash Flow (FCF) is the actual cash a company has left after paying for everything it needs to maintain and grow its business. It shows: How much cash is actually available Ability to fund growth Financial flexibility True operational efficiency 👆 By the way, an interesting fact: Warren Buffett…

What Is The Rule Of 40? The Rule of 40 is like a health score for SaaS companies. It suggests that a healthy software company’s growth rate plus profit margin should add up to 40% or more. Think of it as a balancing act between growth and profitability. You might be: Growing fast with lower…

What is the SaaS Magic Number? The SaaS Magic Number tells you how efficiently you’re turning your sales and marketing spending into revenue. It answers the question: “For every dollar we spend on sales and marketing, how much new recurring revenue do we generate?” How to Calculate the SaaS Magic Number The Formula for SaaS…

What is SaaS Quick Ratio? SaaS Quick Ratio measures how much a company’s revenue is growing compared to its losses. It answers the question: “For every dollar of lost revenue, how many dollars of new revenue are we generating?” How to Calculate SaaS Quick Ratio? The Formula for SaaS Quick Ratio SaaS Quick Ratio =…

What is Upsell Rate? Upsell rate measures how successfully you convince existing customers to buy more expensive products or upgrades. It shows: Effectiveness of upgrade offers Customer satisfaction with current products Growth potential from existing customers Success of your value ladder 👆 By the way, an interesting fact: Studies show that the probability of selling…

What is Customer Renewal Rate? Renewal rate is the percentage of customers who extend their subscriptions or contracts when they expire. It tells you: How many customers actively choose to stay The strength of your customer relationships The effectiveness of your product/service Customer satisfaction levels 👆 By the way, an interesting fact: Studies show that…

What Is CAC Payback Period? CAC Payback Period is the time it takes your SaaS company to recover the cost of acquiring a customer. It answers the key question: “How many months until we recover our customer acquisition costs?” How to Calculate CAC Payback Period Formula for CAC Payback Period CAC Payback Period = CAC /…

What Is a Startup? A startup is a young company with big dreams! 🌟 It’s typically a business that’s just beginning its journey, aiming to solve a problem in a new way or shake up an existing market. Key Characteristics of a Startup Innovation-focused Rapid growth potential Scalable business model Often tech-oriented Usually seeking funding Fun…

  What Is Inventory? Inventory is everything a business has on hand to sell or use in making products. Think of it as your business’s “stuff” – all the goods, materials, and products you need to keep your operation running. 🏭 Fun Fact: The word “inventory” comes from the Latin “inventarium,” meaning “a list of…

What Is Retention Rate? Retention rate is the percentage of customers who stick around over a specific period. It provides insights into: How many customers stay loyal The strength of customer relationships The effectiveness of customer success efforts The overall health of your business Fun Fact: Studies reveal that increasing customer retention by just 5%…

What is Customer Support? Customer support is like being a problem-solving superhero for your customers! 🦸‍♂️ It’s the team that jumps in when customers need help, have questions, or run into issues. Think of them as your company’s emergency response team. Customer support typically includes: Answering customer questions Solving technical problems Handling complaints Processing returns…

What Is Customer Experience? Customer Experience (CX) is every interaction a customer has with your brand – from browsing your website to using your product and talking to support. It’s the overall journey customers take, filled with emotions and impressions. 🗺️ Fun Fact: The focus on customer experience gained momentum in the 1990s when the…