Financial or operational metrics, sometimes called key performance indicators (KPIs), may also be included in an IPO registration statement to illustrate the size, profitability, and growth of the business or other relevant trends such as customer acceptance or retention. The SEC has indicated that registrants should consider the need to disclose KPIs or metrics that management uses in managing its business within MD&A, because such information may be material to an investor’s understanding of the company’s performance. Examples of metrics include items such as number of Web page views, total customers/subscribers, customer retention rates, average revenue per user, occupancy percentage, or same-store sales.
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