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Glossary

GTV, TTV, GMV, Take Rate, Revenue, CAGR, CMGR, COGS, Gross Margin, Burn Rate & Runway

The most relevant financial terms for startups: GTV, TTV, GMV, Take Rate, Revenue, CAGR, CMGR, COGS, Gross Margin, Burn Rate & Runway.

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GTV, TTV, GMV, Take Rate, Revenue, CAGR, CMGR, COGS, Gross Margin, Burn Rate & Runway

What are GTV, TTV, GMV, Take Rate, Revenue, CAGR, CMGR, COGS, Gross Margin, Burn Rate & Runway, and how do you calculate them?

  • GTV (Gross Transaction Value): is the amount transacted through a platform.
  • TTV (Total Transacted Value): is the total value of all transactions on a platform. 
  • GMV (Gross Merchandise Value): is the total value of products sold on a marketplace.

In conclusion, we could say that GTV, TTV and GMV refer to the same thing: the total economic value transacted through a platform.

  • Take Rate: The percentage commission retained by the platform or marketplace.
  • Revenue: is the income a company generates, and it is classified as revenue once the company has the right to collect it.
  • CAGR (Compound Annual Growth Rate): is the average year-over-year growth rate of a company's revenue.
  • CMGR (Compound Monthly Growth Rate): is the average rate at which a company grows month over month.
  • COGS (Cost of Goods Sold): is the cost of the goods that were sold.
  • Gross Margin: is the gross profit remaining after subtracting COGS from revenue.
  • Burn rate: is the amount of money a company spends on its monthly expenses.‍
  • Runway: is the length of time a company can operate before running out of cash to continue its operations. To calculate it, divide the cash on hand by the burn rate.
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