MLT Metrics (10%)

This section outlines metric definitions maintained by finance for reporting to investors.

1. These are metrics for MLT discussions

   1. Any metrics shared by a department with the MLT will be asked to work with business operations to define the metric to be listed on this page under standardized naming and MLT definition checklist

2. Definitions center around ARR, GMA Magic Number and NPS

MLT definitions checklist

1. Qualifiers precede metrics names

   1. i.e. use ""Gross Margin Adjusted Magic Number" instead of "Magic Number, Gross Margin Adjusted" to avoid ambiguity when label names are truncated

2. Metric names should only have one possible interpretation

3. All MLT Metrics should have a unique acronym shorter than 8 characters

   1. Metrics will inevitably be shortened, pre-emptive definition avoids collision

ARR

Revenue Metrics

• IARR: Incremental Annual Recurring Revenue (50%): (New logo ARR + Expansion ARR) - (Contraction ARR + Churn ARR)

• New Logo ARR (1%): ARR from new logos signed, with start dates in the respective period.

• Expansion ARR (1%): ARR from existing customers with a cross-sell/upsell deal, with start dates in the respective period (e.g. increased licensed seat count, upgrading from E10 to E20).

• Contraction ARR (1%): Reduction in ARR from existing customers whose ARR does not become zero.

• Churn ARR (1%): Reduction in ARR from an existing customer whose ARR becomes zero.

• Net New ARR (1%): (New logo ARR + Expansion ARR) - (Contraction ARR + Churn ARR)

• Count of New Logos (1%): Count of new logos signed, with start dates in the respective period.

• Count of Churned Logos (1%): Count of logos lost where an existing customer is no longer paying Mattermost.

Active Users

• Total Active Users: The total number of user accounts created on a single Mattermost server. Excludes deactivated accounts, deleted accounts and bot accounts. This is also the “Total Active Users” measure shown in System Console > Site Statistics.

• Registered Authorized Users: Same as Total Active Users.

• Total Registered Users: The total number of user accounts created on a single Mattermost server, including deactivated and deleted accounts.

• Daily Active Users (DAU): The total number of users who viewed the Mattermost site in the last 24 hours. Excludes bot accounts. This is also the “Daily Active Users” measure shown in System Console > Site Statistics.

• Monthly Active Users (MAU): The total number of users who viewed the Mattermost site in the last 30 days. Excludes bot accounts. This is also the “Monthly Active Users” measure shown in System Console > Site Statistics.

• Active User Count: A measure of the number of active users last 24 hours. Legacy measure, do not use this for analysis or decision-making.

GMA Magic Number

• GMA Magic Number: Gross Margin Adjusted Magic Number (1%): Net New ARR in a period multiplied by Gross Margin in the period, divided by total Sales & Marketing expense in prior period.

• NGMA Magic Number: Non-Gross Margin Adjusted Magic Number (1%)

• Gross Margin: Net sales revenue minus cost of goods sold

• Cost of Goods Sold:

NPS

• Product NPS: The product net promoter score (Product NPS) measures user satisfaction of the product, calculated based on single question “How likely are you to recommend Mattermost?”. The score is based on a -100 to 100 scale, with the calculation detailed here.

• End User Product NPS: The Product NPS calculated among end users only (ie. not among Team or System Admins).

• System Admin Product NPS: The Product NPS calculated among System Admins only.

Support

• Support Metrics (E10 and E20): Metrics calculated based on Zendesk tickets opened by E10 and E20 customers. Tickets opened by non-subscribed organizations are not counted towards these metrics.

• Tickets Created: Number of net new Zendesk tickets created.

• First Response Time [Median, hours]: The median number of hours from when a ticket was opened in Zendesk to when the first response was sent to the customer.

• % First Response >8 Business Hours: % of newly opened Zendesk tickets whose first response time is greater than 8 business hours as defined in https://mattermost.com/support/.

• Resolution Time [Median, hours]: The median number of hours from when a ticket was opened in Zendesk to when the ticket is resolved.

• % Resolution Time >7 days: % of newly opened Zendesk tickets whose first resolution time is greater than 7 days.

• % Resolution Time >14 days: % of newly opened Zendesk tickets whose first response time is greater than 14 days.

• Number of CSAT Responses: # of new CSAT (Customer Satisfaction) survey responses from customers whose Zendesk ticket was resolved.

• Customer Satisfaction Score: % of newly submitted CSAT survey responses who responded “Yes” to the question .

For technical analytics definitions not covered here, see the Analytics Playbook.

Best Practices

To be added.