Key Metrics to check for online companies

  1. Monthly Active Users
    • That will be the very thing I would look at especially for online games, apps and social networking services. It is calculated by the number of unique users for a thirty day period.
    • An increasing number is a must. A drop for a long period is a warning
  2. With the current trend of going mobile, check on mobile revenue growth rate. It should be accelerating or constant.
  3. Average acquisition cost (if any) under control and declining
  4. Customer Lifetime value (depending on the online business)
  5. Average order value (depending on the online business)
  6. Retention rate (depending on the online business)
  7. Improving Margins (across all companies)
  8. Total addressable market and room for revenue growth