Revenue per Employee
Definition
Revenue per Employee: Revenue per employee measures how efficiently a company generates revenue relative to headcount. It's calculated by dividing annual revenue by number of employees. Higher RPE indicates operational efficiency, though optimal values vary by industry.
Example Usage
“With $10M ARR and 25 employees, our revenue per employee of $400K exceeds SaaS benchmarks.”
Common Misconceptions
Related Terms
Annual Recurring Revenue
Annual Recurring Revenue (ARR) is the yearly value of recurring subscription revenue, calculated as MRR multiplied by 12. ARR is the primary metric fo...
Burn Rate
Burn rate is the speed at which a company spends its cash reserves before generating positive cash flow. Gross burn is total monthly expenses, while n...
Unit Economics
Unit economics refers to the direct revenues and costs associated with a single unit of a business (a customer, product, or transaction). Positive uni...
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