SUBSCRIPTION (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) MRR CMGR Implied compounded monthly MRR growth rate between two disparate months [CMGR = (latest month (Compound Monthly Growth Rate) MRR / first month MRR) ^ (1 / # of months) -1] GROSS USER CHURN Total lost customers (cancelled subscriptions) in a given period / prior period total customers 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) 9