Adlega Blog:

What is MRR? MRR, or Monthly Recurring Revenue, is a metric used by subscription-based businesses to measure the predictable, recurring revenue they generate each month. It excludes one-time payments, such as setup fees or irregular charges, and focuses solely on the recurring revenue from subscriptions. MRR helps businesses track their financial health and growth by…

What is EBITDA? EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It shows the money a company earns from its regular business activities, such as selling products or services. This calculation excludes interest on loans, taxes, and the reduction in asset value through depreciation and amortization. It focuses on the company’s ability to…

What is EBIT (Earnings Before Interest and Taxes)? EBIT, or Earnings Before Interest and Taxes, is a financial term that shows how much profit a company makes from its main business activities before it pays interest on debts or taxes. It’s also called Operating Income or Operating Profit. How to Calculate EBIT Formula for EBIT:…

What is Total Profit? Total Profit, also known as Net Profit or Net Income, is the amount of money a company keeps after subtracting all of its expenses from its total revenue. It’s a key measure of a company’s financial health because it shows how much money the company actually makes after covering all its…

What is Cash Flow? Cash Flow is about tracking the money that comes into and goes out of a business. It shows how much cash a company has and helps ensure there’s enough to pay bills and invest in growth. Types of Cash Flow Operating Cash Flow: This is the cash a company earns from…

  What is Expansion Revenue? Expansion Revenue is the extra money a company makes from its existing customers as they spend more on its products or services. Unlike new revenue from new customers, expansion revenue comes from getting current customers to buy more or upgrade. What Expansion Revenue Includes Upselling: When current customers buy a…

What is Gross Revenue? Gross Revenue refers to the total money a company earns from its business activities before deducting any expenses. It includes all income from sales of goods or services, as well as other sources of revenue, like interest or rental income. It represents the company’s top-line sales figure and is often the…

What Is Margin? In finance, margin measures how much profit a company makes compared to its sales or costs. It’s typically expressed as a percentage, providing insights into financial performance. Common Types of Margins 1. Gross Profit Margin What It Is: Shows the money remaining from sales after subtracting the cost of goods sold (COGS).…

What is Gross Profit? Gross Profit is a key financial metric that measures a company’s profitability by calculating the difference between its total revenue and the Cost of Goods Sold (COGS). It indicates how efficiently a company is producing and selling its products or services. Gross profit is not exactly the same as total profit.…

What is Cost of Goods Sold (COGS)? Cost of Goods Sold is an important financial metric that represents the direct costs associated with producing goods that a company sells. It is a key component in determining a company’s gross profit and overall profitability. Understanding COGS helps businesses analyze how efficiently they are managing production costs…

What is Net Income? Net income serves as a key financial metric that measures a company’s profitability. It shows the remaining money a company keeps after subtracting all expenses from its total revenue. How to calculate net income? Start with Revenue: This is the total amount of money a company earns from its business activities,…

SaaS Business Model The SaaS (Software as a Service) business model is about providing software over the internet instead of through physical copies or local installs. Customers subscribe to the software, usually paying monthly or yearly, instead of buying it outright. SaaS Company A SaaS company makes and offers software applications online using cloud technology.…