SAAS (cont’d) METRIC DEFINITION MRR (Monthly Recurring Revenue) Revenue recognized for recurring services rendered in a given month (does not include one-time, or non- recurring, revenue such as fees and professional services revenue) ARR (Annual Recurring Revenue) Measure of revenue components that are recurring in nature on an annual basis (ARR = MRR * 12) GROSS MRR CHURN Monthly recurring revenue lost in a given month / monthly recurring revenue at the beginning of the month PAID CAC Cost per customer acquired through paid marketing channels (total sales and marketing spend in a given month / total customers acquired via paid channels, including via sales, in a given month) 6