Resources

The Arbo Glossary

Welcome to the Arbo Glossary! This concise and comprehensive resource provides definitions and explanations of key accounting, finance, and startup terms.

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Finance

Burn Rate

The burn rate represents the rate at which a company spends or loses money over a specific period. It indicates how quickly a company is depleting...

Finance

Dollar-Based Net Expansion Rate (DBNER)

Dollar-Based Net Expansion Rate (DBNER) is a metric used to measure the revenue growth generated from existing customers through add-ons, upselling,...

Finance

Fair Market Value (FMV)

Fair Market Value (FMV) represents the current value of a company's common shares or other assets. For public companies, FMV can be determined by the...

Finance

Forecasts

Forecasts are data-driven estimates of a company's future financial performance. They are essential for making informed business decisions, setting...

Finance

Fractional CFO

A fractional CFO, a virtual or outsourced CFO, is an external financial professional or firm that provides part-time CFO services as needed

Finance

Free Cash Flow (FCF)

Free Cash Flow (FCF) is the cash generated by a company's operations after accounting for operating expenses and capital expenditures.

Finance

Gross Merchandise Value (GMV)

GMV is the total value of products sold through an eCommerce platform within a specific period.

Finance

Key Performance Indicator (KPI)

KPIs are quantifiable metrics that help measure and evaluate the performance of a business.

Finance

Last Twelve Months (LTM)

LTM, also called trailing twelve months (TTM), is a period of the most recent twelve consecutive months used for financial analysis and valuation.

Finance

Lock-Up Period

A lock-up period is a specific duration following an initial public offering (IPO) during which certain shareholders, including founders, employees,...

Finance

Magic Number

The magic number is a sales efficiency metric used by SaaS companies to assess the relationship between sales and marketing expenses and the...

Finance

Month Over Month (MoM)

MoM compares data or performance indicators between two consecutive months. It is commonly used to analyze growth rates, revenue changes, or other...

Finance

Monthly Recurring Revenue (MRR)

MRR is the sum of the revenue generated from recurring subscriptions or services within a single month.

Finance

Net Dollar Retention (NDR)

NDR, also known as net revenue retention, measures the revenue retained from existing customers, accounting for both expansion and churn.

Finance

Outsourced Controller

An outsourced controller is an external professional or firm that handles a company's accounting and financial management on a part-time or...

Finance

Runway

Runway refers to when a company can operate without running out of cash. It is calculated by dividing the available cash balance by the average...

Finance

Trailing Twelve Months (TTM)

Trailing twelve months (TTM), also referred to as the last twelve months (LTM), represents a consecutive twelve-month period immediately preceding...

Finance

Year to Date (YTD)

Year to Date (YTD) refers to the period from the beginning of the current year or fiscal year to the present date. It is used to analyze financial...

Finance

Burn Multiple

The burn multiple measures a company's capital efficiency. It is calculated by dividing the net cash burned (cash used by the company) by the net new...

Finance

Cohort Analysis

Cohort analysis involves dividing customers or users into groups based on a shared characteristic or timeframe, such as their sign-up month.

Finance

Basis Point

A basis point equals one-hundredth of a percentage point (0.01%). It is commonly used in finance to measure small changes in interest rates, bond...

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