New Logos

The number of parent accounts (logos) that became active during the period.

What is New Logos?

The New Logos metric, also known as New Parent Accounts, quantifies the number of parent customers or clients that started using the company's products or services during a specified period. It provides insight into the total count of new parent accounts, disregarding revenue amounts.

It is part of the active parent accounts waterfall, which can be broken down into its different components: start of period parent accounts, new parent accounts, and churned parent accounts.

Why is it important to measure New Logos?

For businesses, particularly in the SaaS industry, tracking New Logos is crucial for evaluating customer acquisition and market penetration. This metric typically spans a specific time frame, such as a month, quarter, or year, depending on the company's chosen analysis period and business model. By monitoring the number of New Logos over time, companies can assess the effectiveness of their marketing and sales efforts and identify trends in customer acquisition.

Overall, measuring the New Logos metric empowers companies to make data-driven decisions concerning customer acquisition strategies, product positioning, and market outreach to cultivate a growing and diverse customer base.

How is New Logos calculated?

The New Logos metric is calculated by summing the number of parent accounts that are active in the period but had no Annual Recurring Revenue (ARR) in the preceding period.