// RevOps
Revenue Leakage
Contracted revenue that never becomes cash, lost to un-billed usage, missed renewals, discounts or clerical error.
In depth
Industry studies put leakage at 1–5% of ARR at most SaaS companies. Common sources: usage overages not metered, auto-renewal notices missed, un-invoiced services, contract terms drift. Quote-to-cash and CPQ maturity are the primary defences.
Related terms
Quote-to-Cash
The end-to-end process from generating a quote to collecting the cash, quote, contract, order, invoice, revenue.
CPQ
Configure, Price, Quote, software that produces a valid, priced quote from a product catalogue and rules engine.
Cash Collections
The cash actually received from customers in a period, the number CFOs plan runway from.