Yep, to expand a little bit, 1/e^2 is basically just a way to classify beam diameter. A TEM00 laser output's beam is not a perfect circle, but a circular spot with highest intensity in the center, where the intensity tapers off as you get further and further from the center. Therefore you can't say there's a definite diameter to that circle, and we have the 1/e^2 definition. There are others, some places use 1/e and other types, but 1/e^2 is the most common. Basically, the spot radius is the distance away from the center where the intensity is 1/e^2 what it was at the center (roughly .135x)
knimrod, at the 1/e^2 radius, roughly 86% of the beams power will be within that circle, but the intensity is less than 86%.