Term · Business Model & Operating KPIs
Cohort Analysis
In briefA cohort analysis looks at groups of customers or users acquired at the same point in time over time. For small-caps it shows whether the quality of growth is increasing or decreasing.
Definition
Cohort analysis examines groups of customers or users acquired in the same period over time.
How it is calculated
Formula. No formula; cohorts are analyzed by start date, behavior, revenue, churn, or retention.
Why it matters for small caps
In the small-cap space, cohort analyses show whether growth is becoming qualitatively better or worse.
Common misreadings
- Cohort analysis is often seen as a pure start-up topic, even though it is also important for listed growth companies.
In the process
Frequently asked
What is a cohort analysis?
It is the study of groups of customers acquired at the same time as they develop over time. You track how a cohort evolves.
How do you run a cohort analysis?
You group customers by start date and look at behavior, revenue, churn, and retention. This makes patterns visible over time.
Is cohort analysis only a start-up topic?
No, it is also important for listed growth companies. It shows whether new customers retain better or worse than earlier ones.
Related terms
Sources
Primary
ESMA – Guidelines on Alternative Performance Measures
https://www.esma.europa.eu/document/esma-guidelines-alternative-performance-measures
https://www.esma.europa.eu/document/esma-guidelines-alternative-performance-measures
Methodology
IFRS Foundation – IFRS 15 Revenue from Contracts with Customers
https://www.ifrs.org/issued-standards/list-of-standards/ifrs-15-revenue-from-contracts-with-customers/
https://www.ifrs.org/issued-standards/list-of-standards/ifrs-15-revenue-from-contracts-with-customers/
Education only, not investment advice. Ranges and thresholds are didactic orientation values, not an official standard.