Adlega Blog:

  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.…

What is Revenue? Simple Definition: Revenue is the total amount of money a business earns from selling its main products or services before any expenses are subtracted. Also Known As: Top line Gross income Sales Turnover (in some countries) Types of Revenue 1. Operating Revenue Money earned from main business activities. Examples: Product sales for…

What is OPEX in SaaS Companies? Operating expenses (OPEX) in SaaS companies include ongoing costs that support daily operations and ensure the business runs efficiently. SaaS companies have unique OPEX due to their software-focused operations. Key OPEX Elements for SaaS Companies Server and Hosting Costs: SaaS companies incur significant expenses for cloud hosting, data storage,…

What is OPEX? Operating expenses (OPEX) are the everyday costs a business incurs to keep running. These expenses are recorded in the accounting books when they happen and directly affect the company’s profits and cash flow. Unlike capital expenditures (CAPEX), which are for long-term assets that get depreciated over time, OPEX covers immediate costs. There’s…

Negative Churn Rate Meaning A negative churn rate occurs when the revenue gained from existing customers (through upgrades, add-ons, or expansions) exceeds the revenue lost from customers leaving or downgrading. So, even after some customers leave, the overall revenue from existing customers still increases. This phenomenon is also known as “revenue expansion” or “negative revenue…

What is MAU? Simple Definition: Monthly Active Users (MAU) is a metric that counts the number of unique users who engage with a product or service within a 30-day period. Key Points: Counts each user only once, even if they use the product multiple times Typically measured over a calendar month Requires defining what “active”…