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What metrics should definitely be included in an investor update?
Writing one of your first updates and got lost what metrics are must-haves in an update? You go to Google, open a dozen articles, and get lost more and more. There are so many that seem to be mandatory! Do not worry; we got you! Our many years of experience in creating investor updates allowed us to bring out the perfect (well, or almost perfect) list of necessary metrics.

It is important to note that the investor update should not be overloaded with all kinds of data. Present only what is relevant to the point of discussion, and always reinforce your data with the conclusion. Do not be afraid to show down metrics! If the problem is visible, then we just need to come up with a solution on how to fix it.

The best option for an investor update is to visualize all the data. Do not hesitate to use different types of charts and tabs. It is a feature of the human brain that any information processes faster when visualized–in pictures and graphs–than in pages of text.

Use only those numbers in statistics, thanks to which you can measure success/temporary difficulties.
From: by Anna Vital
Related to economics:

  • Cash flow —the net amount of cash (and cash equivalents) that are being transferred in and out of a business
  • EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) –displays the company's profitability
  • Gross Margin (%) –way of measuring the amount of profit a company can make from its revenue by selling goods and services
  • Revenue (typically in %). Actual and forecast.
  • Percentage revenue from new customers
  • Net Sales–the total amount of sales made by a business minus its returns, allowances, and discounts
  • Burn rate (a measure of negative cash flow) –measures the rate upon which an organization spends its capital (cash and cash equivalents)
  • Monthly recurring revenue (MRR) –the total revenue a company expects to receive from all the active subscriptions in a particular month.
  • Annual recurring revenue (ARR) –the total revenue that a company expects to receive from all the active subscriptions with more than one-year term.
  • Cash on hand and months of the runway–how much cash (and cash equivalents) is left and how long it will last. It helps to prepare to start a new round of funding beforehand and not unexpectedly run out of money one day.
From: by Anna Vital
Crucial metrics related to customer behavior and trends:

  • Sales–the number of people who have tried the trial period, upgraded to the subscription, booked the first free session, and become returning customers, etc.
  • Active users–shows us the level of engagement with the product or service, helps to identify customers' behavior, and chooses to decrease/increase production. It depends on the period (typical Monthly Active Users) and is relevant to organizations with a web presence.
  • Customer Acquisition Cost, or CAC- how much does it cost to acquire one new customer and persuade them to buy your product/service using sales and marketing tools.
From: by Anna Vital
Part of an investor update concerning customers may look like this:
"The number of newly attracted customers has doubled this month due to the launch of a new product X and other ad campaigns via Google Ads, Instagram, and email."

New Leads per Month:
+678 Active Leads, > 12% of leads executed *target action*

You can split these figures into smaller periods (a month into four weeks, one year into 12 months, and so on)

While economic metrics in an update may look like this:
"We noted the increasing dynamics for each metric due to the launch of a new product and its advertising campaign. However, it is important to note that we expect a decline in profits next month under the influence of external factors, such as X(rapidly rising inflation–21%), Y, etc."

Revenue: $80000 (±x%)
Net Sales: $79870 (±x%)
MRR: money= number of customers (45) x how much a customer pays monthly ($150).
Runway: money x months=$10 million x 1 month

The main goal of metrics in an investor update is to measure and visualize progress made to keep up with the business development strategy. Based on the numbers in those particular metrics, you will identify which of the set goals have been achieved and what mistakes may have been made in the calculations (or maybe you did not simply consider some aspects–e.g., the worsening economic situation–the inflation rate increased more than expected, etc.).

Focusing on the metric of the most recent period and the changing market situation, you can modify your goals and bring them closer to more realistic ones in the next period if your expectations in the last period were too high / too low.
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