Glossary

Subscription Billing, Revenue Recognition, SaaS Metrics

A B C D E F G H I J K L M O N P Q R S T U V W X Y Z

A

July 23, 2025 in A, Glossary

Annual Recurring Revenue (ARR)

What It Means (Simple Explanation) ARR stands for Annual Recurring Revenue. It’s the total predictable revenue a SaaS company expects from subscriptions in a year. It typically excludes one-time fees, trials, and variable charges—it’s all…

July 8, 2025 in A, Glossary

Advance Billing

Advance billing is the practice of invoicing customers before the service period begins. It’s common in SaaS where subscriptions are billed annually or quarterly upfront.

C

July 17, 2025 in C, Glossary

Credit Memo vs Debit Memo

What It Means (Simple Explanation) A credit memo reduces what a customer owes you. A debit memo increases it. In SaaS, both are adjustments to invoices—used when things change after the original bill goes out…

D

July 23, 2025 in D, Glossary

Deferred Revenue

What It Means (Simple Explanation) Deferred revenue is money you’ve been paid—but haven’t earned yet. If a customer pays upfront for a year, you can’t call it revenue right away. It sits as a liability…

R

July 16, 2025 in Glossary, R

Ramp Deal

A ramp deal is a SaaS contract with scheduled pricing increases over time. It allows a customer to start small and grow into a larger contract—usually aligned with expected usage or adoption. Ramp deals are…

S

July 23, 2025 in Glossary, S

Subscription Upgrade

What It Means (Simple Explanation) A subscription upgrade is when a customer moves to a higher-priced plan or adds more features, seats, or services to what they’re already paying for. It’s a sign they’re getting…

July 16, 2025 in Glossary, S

Subscription Pause

A subscription pause temporarily suspends billing and service for a customer—without canceling their contract. It lets customers take a break while keeping their account active for future reactivation.

U

July 22, 2025 in Glossary, U

User Based Pricing

What It Means (Simple Explanation) User-based pricing means customers pay based on how many users or seats they have. The more users they add, the more they’re billed. It’s one of the simplest and most…