LTV or Customer Lifetime Value in a SaaS Business

New Bookings What are New Bookings in a SaaS business? New Bookings typically refers to the portion of bookings attributed to new customers, or more specifically new contracts with new or existing customers. For example, ABC, Inc. has been a client since 2005, but a new division signed a new term agreement. The bookings associated…

What is Total Contract Value (TCV) in SaaS? The Total Contract Value (TCV) metric summarizes the contractual value of fully executed term contracts. TCV can differ from Bookings in that Bookings may be defined to include only certain items and only the first year of a multi-year agreement, whereas TCV is not typically limited to…

Total Bookings Definition for SaaS Total Bookings is the value of all transactions in a specified period of time, including all subscription and non-subscription (one-time) transactions. Typically, “value” is the total revenue (recognizable or not) associated with each transaction, as opposed to amount invoiced in the period. However, since there is no standard definition, some…

CLV Definition for SaaS & Subscription Businesses CLV is an acronym for Customer Lifetime Value. Sometimes referred to as CLTV.

Customer Lifetime Revenue Definition for SaaS Customer Lifetime Revenue (CLR) is a simpler variant of the Customer Lifetime Value calculation. This metric is an estimate of the lifetime revenues for a customer. CLR is not the actual historic reportable revenue, rather an estimate or projection of all revenues during the customer lifetime. The number can…

What is Customer Lifetime Value (CLV)? Like other SaaS metrics, Customer Lifetime Value can mean different things to different people. Taken literally, it would seem to imply a total of actual revenues minus expenses for a customer. However, CLV concepts predate the emergence of the subscription model as a preferred software and content delivery model,…

LTV Definition for SaaS LTV, also referred to as CLV, is short for Lifetime Value, which is short for Customer Lifetime Value. Lifetime Value is an estimation of the aggregate gross margin contribution of the average customer over the life of the customer. < Back to SaaSpedia Index From Our Blog Ready to start modernizing…

What is Churn? Churn is the percentage rate at which SaaS customers cancel their recurring revenue subscriptions. Plain and simple. While there are many variations of churn as a phenomenon in SaaS companies, it is typically separated into a gross churn rate and a net churn rate. So what’s the difference between the two? Gross…