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

August 14, 2025 in A, Glossary

What’s an ACH Payment?

In Simple Terms ACH stands for Automated Clearing House. It’s a way to move money straight from one bank account to another. ACH is a term primarily used in the US banking system. It is…

July 23, 2025 in A, Glossary

What is 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…

August 13, 2025 in A, Glossary

ARR Movements

Simple Explanation ARR movements track the changes in a company’s Annual Recurring Revenue over time. These changes come from new bookings, renewals, expansions, contractions, and churn. Each movement affects ARR in a different direction, and…

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.

B

August 8, 2025 in B, Glossary

What is Batch Invoice Generation?

What It Means (Simple Explanation) Batch invoice generation is the automated process of producing multiple invoices in a single billing run. It consolidates all billable records for a set of customers based on billing triggers…

July 29, 2025 in B, Glossary

Billing Waterfall

Billing waterfall automates invoicing schedules and payment allocations—essential for accurate MRR/ARR, reduced DSO, and ASC 606 compliance.

C

September 12, 2025 in C, Glossary

Churn Rate

Learn what churn rate means in subscriptions and SaaS. Understand types of churn, how to calculate it, and benchmarks for customer and revenue retention. Improve churn with data-driven strategies.

D

August 29, 2025 in D, Glossary

What Is Deferred Billing?

What It Means (Simple Explanation) Deferred Billing refers to the practice of delaying invoicing or payment for goods or services even after they have been delivered or accessed. It’s often used in scenarios like annual…

F

August 14, 2025 in F, Glossary

What Are Financial Statements?

The Short Version Financial statements are reports that show how your business is doing with money. They tell you what you earned, what you spent, what you own, what you owe, and if you're making…

I

August 13, 2025 in Glossary, I

What’s an Income Statement?

An income statement (aka P&L) shows how much money your business made or lost over a period of time. It tracks what you earned, what you spent, and what’s left over. In this article we…

M

July 23, 2025 in Glossary, M

Monthly Recurring Revenue (MRR)

What It Means (Simple Explanation) MRR is the total predictable revenue you earn every month from subscriptions. It’s steady, trackable, and a core health metric for any SaaS business. Example If you have 50 customers…

N

August 28, 2025 in Glossary, N

What Is New ARR?

What It Means (Simple Explanation) New ARR (New Annual Recurring Revenue) refers to the annual recurring revenue generated exclusively from newly acquired customers during a specific period. It excludes changes to existing customer accounts, including…

July 23, 2025 in Glossary, N

Net Revenue Retention (NRR)

What It Means (Simple Explanation) Net Revenue Retention (NRR) shows how much your revenue from existing customers grows—or shrinks—over time. It accounts for expansion (upgrades), contraction (downgrades), and churn (losses). Example If you start the…

P

August 28, 2025 in Glossary, P

What Is Proration?

What It Means (Simple Explanation) Proration (also known as prorated billing) is the practice of adjusting the charges a customer owes when there is a change to their contract during a billing cycle. Examples of…

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

August 12, 2025 in Glossary, S

What is a Subscription Plan?

What It Means (Simple Explanation) A subscription plan defines the pricing, billing frequency, feature entitlements, and usage allowances a customer receives in exchange for a recurring fee. It’s the core commercial line item in SaaS…

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…