OverviewMetrics SourcesGrowth MetricsRetention MetricsUnit Economics Metrics

S&M Expense vs New Sales ARR

Comparing Sales & Marketing (S&M) spend to ARR from new customers helps show how efficiently S&M spend translates to new revenue.

New Sales ARR = Sum of revenue from new customers x 12

S&M Expense = Inputted S&M

For quarterly and annual aggregations, the New Sales ARR formula is applied using revenue from the last month of the period. S&M Expense is the sum of inputted S&M for all months in the period.