Efficiency

LTV:CAC Ratio

How much lifetime gross profit a customer generates for every dollar spent acquiring them.

Peter Mahoney · · 2 min read

Burn Multiple

How many dollars of cash you burn for every dollar of net new ARR — the defining capital-efficiency metric of the post-ZIRP era.

Peter Mahoney · · 2 min read

Magic Number

How much annualized revenue each dollar of sales and marketing spend produces — the classic test of whether to step on the gas.

Peter Mahoney · · 2 min read