Docs
The percentage of recurring revenue retained from existing customers, excluding expansion revenue.
Explanation of metric
A chart illustrates the percentage of recurring revenue retained during the selected period from active subscriptions in the previous period, excluding any expansion effects.
How it's measured
Gross Revenue Retention = Percentage of MRR in the selected period of subscriptions active in the previous period and their MRR in the previous period, without considering any expansion that has happened during the period.
Any subscription with the previous period MRR as 0 can be omitted.
Reading
An upward trend indicates growth in committed revenue.
Interpretation
Gross Revenue Retention (GRR) is a critical financial metric that measures a company's ability to retain customers and sustain revenue, excluding expansion revenue from upsells, cross-sells, or upgrades. This metric is particularly important for subscription-based businesses and those in the Software-as-a-Service (SaaS) sector, providing valuable insights into customer retention.
Example
In a given period,
Total MRR at the beginning of the period: $5,000
Total MRR at the end of the period: $6,000
Gross Revenue Retention considers only the retained MRR without including any expansion. Therefore, use the minimum MRR at the beginning and end of the period.
Gross Revenue Retention Rate = Minimum(Total MRR at the beginning of the period, Total MRR at the end of the period)/MRR at the beginning of the period = 5000/5000 = 1%
The percentage of recurring revenue retained from existing customers, including expansion revenue and accounting for churn.
Explanation of metric
A chart represents the percentage of recurring revenue retained during the selected period from subscriptions active in the previous period.
How it's measured
Net Revenue Retention = (Total MRR at the end of the period / Total MRR at the beginning of the period) × 100
Omit any subscription with a previous period MRR of 0.
Reading
An upward trend indicates growth in committed revenue.
Interpretation
This metric encompasses the overall revenue, incorporating expansion revenue while deducting revenue losses caused by churn, which includes contract expirations, cancellations, or downgrades. It provides a comprehensive view of a company's ability to retain and grow revenue from its existing customer base.
Example
Summary of Monthly Recurring Revenue movements over time.
Explanation of metric
This table breaks down the MRR components during the period.
How it's measured
Closing MRR of the period = [(Opening MRR) + (New MRR) + (Currency Change MRR) + (Upgrade MRR) + (Free to Paid MRR) + (Reactivation MRR) +Resume MRR -(Cancellation MRR) - (Downgrade MRR) - (Active to Trial MRR) - (Paused MRR) +/- (Exchange rate fluctuations during the period)]
Reading
Interpretation
This report provides a granular breakdown of MRR, highlighting net and gross expansion and contraction from existing customers over a period.
Example
In a given period,
Opening MRR: $120,000
New MRR: $23,000
Currency Change MRR: $0
Upgrade MRR: $22,000
Free to Paid MRR: $1,200
Resume MRR: $800
Reactivation MRR: $5,678
Cancellation MRR: $3,656
Downgrade MRR: $1,500
Active to Trial MRR: $756
Paused MRR: $550
Closing MRR of the period = (120,000 + 23,000 + 0 + 22,000 + 1,200 + 5,678 + 800) - (3,656 + 1,500 + 756 + 550)
= 172,678 - 6,462
= $166,216
Summary of Annual Recurring Revenue movements over time.
Explanation of metric
This table breaks down the ARR components during the period.
How it's measured
Closing ARR of the period = [(Opening ARR) + (New ARR) + (Currency Change ARR) + (Upgrade ARR) + (Free to Paid ARR) + (Pause to Paid ARR) + (Reactivation ARR) - (Cancellation ARR) - (Downgrade ARR) - (Active to Trial ARR) - (Paused ARR) +/- (Exchange rate fluctuations during the period)]
Reading
A downward trend suggests a decrease, warranting further analysis.
Interpretation
This report provides a granular breakdown of ARR, highlighting the net and gross expansion and contraction of existing customers over a period.
Example
In a given period:
Opening ARR: $120,000
New ARR: $23,000
Currency Change ARR: $0
Upgrade ARR: $22,000
Free to Paid ARR: $1,200
Pause to Paid ARR: $800
Reactivation ARR: $5,678
Cancellation ARR: $3,656
Downgrade ARR: $1,500
Active to Trial ARR: $756
Paused ARR: $550
Calculation: Closing ARR of the period = (120,000 + 23,000 + 0 + 22,000 + 1,200 + 800 + 5,678) - (3,656 + 1,500 + 756 + 550)
= 172,678 - 6,462
= $166,216
Total Monthly Recurring Revenue earned from subscriptions.
Explanation of metric
A trend line depicts the total predictable Monthly Recurring Revenue (MRR) earned from customers. This metric provides a point-in-time indicator, representing the Total MRR of subscriptions in the current period. It also compares the Total MRR for the previous period and the percentage change across both periods.
How it's measured
Total MRR = Total MRR of subscriptions during the period.
Included in Total MRR:
Included in Total MRR (if configured):
Excluded from Total MRR:
Reading
An upward trend indicates growth in committed revenue.
Interpretation
Total MRR is a key performance indicator (KPI) that reflects a business's health. Investors often consider this metric before making investment decisions. Total MRR is the north star metric that should increase to ensure sustainable growth.
Example
In a given period:
Calculation:
Measures the total monthly recurring revenue (MRR) earned from active subscriptions, segmented by country.
Explanation of metric
This metric represents the total predictable monthly recurring revenue generated from active subscriptions, categorized by country. A chart helps visualize the revenue distribution across different countries, allowing businesses to analyze their geographical revenue trends.
How it's measured
Total MRR by Country = Total MRR of subscriptions during the period per country
Included in Total MRR by Country:
Included in Total MRR by Country (if configured):
Excluded from Total MRR by Country:
Reading
An increase indicates growing subscription revenue from specific countries, reflecting new sign-ups, upgrades, or renewals.
Interpretation
This metric helps businesses understand revenue distribution across countries. It enables companies to monitor performance in various regions, assess market potential, and identify growth or retention opportunities. Analyzing MRR by country informs market expansion strategies and pricing adjustments based on regional demand.
Example
In a given period:
MRR for Country A = $25,000
MRR for Country B = $10,000
Total MRR by Country = $35,000
This metric measures the total monthly recurring revenue earned from active subscriptions, segmented by Plan Group (e.g., Freemium, Launch, Enterprise).
Explanation of metric
This metric represents the predictable monthly recurring revenue earned from subscriptions, segmented by different plan groups. It helps track which plan groups are generating the most revenue. The data is visualized as a chart, offering insights into how different plans contribute to total MRR over time.
This is available with RevenueStory (RS) premium only. To use this metric more efficiently, you have to configure a custom field at the Plan resource level in Chargebee and map it to the Plan group to a Plan resource in RevenueStory. However, you can configure and select your values in this custom field. It is recommended to configure meaningful values that are relevant to your business. To enable this, contact your Customer Success Manager or support@chargebee.com .
How it's measured
Total MRR by Plan Group = Total MRR of subscriptions during the period per Plan Group
Included in Total MRR by Plan Group:
Excluded from Total MRR by Plan Group:
Reading
An increase indicates higher MRR from a particular plan group, suggesting more customer sign-ups, upgrades, or better retention within that group.
Interpretation
This metric highlights which plan groups contribute the most to total MRR, providing insight into revenue concentration across different offerings. For example, older plans may continue to provide significant MRR if customer retention is high, but newer plan groups might be responsible for current growth. Tracking MRR across plan groups helps businesses make informed decisions about pricing strategies, plan optimization, and customer retention.
Example
In a given period:
200 subscriptions are on Plan A ($50/month)
50 subscriptions have a recurring add-on ($10/month)
Discount per subscription = $10
Calculation:
MRR from Plan A = 200 × 50 = $10,000
Add-on MRR = 50 × 10 = $500
Total discounts = 200 × 10 = $2,000
Total setup fees = $700 (excluded)
Total MRR by Plan Group = (10,000 + 500 - 2,000) = $8,500
Measures the total monthly recurring revenue earned from subscriptions, segmented by Customer Type (e.g., Individual, SME, Enterprise).
Explanation of metric
This metric tracks the predictable monthly recurring revenue from subscriptions, segmented by different customer types. It is visualized in a stacked bar chart, showing how different customer segments contribute to total MRR each month.
This is available with RevenueStory (RS) premium only. To use this metric more efficiently, you have to configure a custom field at the Customer resource level in Chargebee and map it to the Customer type to a Customer resource in RevenueStory. However, you can configure and select your values in this custom field. It is recommended to configure meaningful values that are relevant for your business. To enable this, contact your Customer Success Manager or support@chargebee.com .
How it's measured
Total MRR by Customer Type = Total MRR of subscriptions during the period per Customer Type
Included in Total MRR by Customer Type:
Included in Total MRR by Customer Type (if configured):
Excluded from Total MRR by Customer Type:
Reading
A decrease indicates lower revenue contribution from a particular customer type. This might suggest issues with retention, decreased demand, or increased churn within that segment.
Interpretation
This metric helps identify which customer types are generating the most revenue. An increase in MRR from a specific customer type indicates strong performance and suggests that this segment is a key target for growth. Conversely, a decrease may point to issues with that segment, such as higher churn or lower engagement. Focusing on high-growth customer types can drive revenue while analyzing and addressing the reasons behind low-growth segments can help improve overall business performance.
Example
In a given period, for an Enterprise Customer:
Calculation:
Measures the total monthly recurring revenue earned from subscriptions, segmented by Business Type (e.g., E-Commerce, SaaS, Ed Tech).
Explanation of metric
This metric tracks the predictable monthly recurring revenue from subscriptions, categorized by different business types. It is visualized using a chart, showing how various business types contribute to the overall MRR each month.
How it's measured
Total MRR by Business Type = Total MRR of subscriptions during the period per Business Type
Included in Total MRR by Business Type:
Included in Total MRR by Business Type (if configured):
Excluded from Total MRR by Business Type:
Reading
An increase indicates higher revenue contribution from a particular business type, suggesting strong performance and interest in the product within that segment.
Interpretation
This metric helps identify which business types are generating the most revenue. An increase in MRR from a specific business type indicates that the segment is performing well and contributing to business growth. It can be used to target and expand efforts within high-performing segments. Conversely, a decrease may signal issues with that segment or a shift in revenue sources, which could warrant further investigation.
Example
In a given period, for a SaaS Business:
Calculation:
Measures the total monthly recurring revenue earned from subscriptions, segmented by metered and non-metered components.
Explanation of metric
This metric provides insight into the revenue generated from subscriptions based on whether the components are metered or non-metered. The data is presented using a chart, illustrating the distribution of MRR across these two categories during a specific period.
How it's measured
Total MRR by Metered and Non-Metered Components = Total Recurring MRR (Metered) + Total Recurring MRR (Non-Metered)
Included in Total MRR by Metered Components:
Included in Total MRR by Non-Metered Components:
Excluded from Total MRR by Metered and Non-Metered Components:
Reading
An increase indicates higher revenue from either metered or non-metered components, which can suggest more substantial usage or adoption of these components.
Interpretation
This metric helps understand the revenue composition across metered and non-metered components. It identifies how much revenue is coming from usage-based (metered) versus fixed-rate (non-metered) subscriptions. Analyzing this metric allows you to tailor retention programs and optimize revenue strategies based on the component type. For instance, if metered revenue is significant, focus on optimizing metered usage and related customer engagement.
Example
In a given period:
Measures the monthly recurring revenue earned from subscriptions, segmented by plan.
Explanation of metric
This metric illustrates the predictable Monthly Recurring Revenue (MRR) earned from each subscription plan. A chart represents this data, showing the contribution of each plan to the total MRR. Note that MRR from other subscription components, such as addons or recurring/non-recurring coupons, is not included in this metric.
How it's measured
Total MRR by Plan = Total MRR of subscriptions during the period per Plan
Included in Total MRR by Plan:
Included in Total MRR by Plan (If Configured):
Excluded from Total MRR by Plan:
Reading
An increase indicates higher revenue from a specific plan, which could suggest a successful plan or increased customer adoption.
Interpretation
This metric helps identify which plan contributes the most to total MRR. It is useful to compare this with new MRR by plan to understand each plan's performance and retention. For example, a plan with high total MRR might have been popular among long-term customers, while current new MRR could come from different plans. Analyzing both metrics provides a comprehensive view of plan performance.
Example
In a given period:
Calculation:
Measures the monthly recurring revenue earned from subscriptions, segmented by addon.
Explanation of metric
This metric shows the predictable Monthly Recurring Revenue (MRR) earned from subscriptions, segmented by each addon. A chart visually represents this data, highlighting the contribution of each addon to the total MRR.
How it's measured
Total MRR by Addon = Total MRR of subscriptions during the period per Addon
Included in Total MRR by Addon:
Included in Total MRR by Addon (If Configured):
Excluded from Total MRR by Addon:
Reading
An increase indicates higher revenue from a specific addon, suggesting greater adoption or successful pricing.
Interpretation
This metric helps identify which addon contributes the most to total MRR. Comparing this with new MRR by addon provides insight into the performance and popularity of each addon. For example, an addon with high total MRR might have been popular among long-term customers, while new MRR could come from different addons. Analyzing both metrics gives a clear view of addon performance and customer trends.
Example
In a given period:
Calculation:
Measures the additional Monthly Recurring Revenue (MRR) earned from upgraded, reactivated, and free-to-paid subscriptions.
Explanation of metric
This metric shows the additional MRR generated from existing customers when they upgrade their plans, purchase addons, or transition from free to paid subscriptions. It is a point-in-time indicator of the current Expansion MRR, also displaying variance compared to previous periods and percentage changes across different periods.
How it's measured
Total Expansion MRR = (Increase in Total MRR due to Upgrades) + (Free to Paid MRR) + (Reactivations) + (PAUSE to Paid MRR)
Does not include IN TRIAL to ACTIVE conversions.
Reading
An increase indicates growing revenue from the existing customer base, signaling successful customer upgrades and conversions.
Interpretation
An increase in Expansion MRR signifies that revenue is growing without the need to acquire new customers. This is a positive indicator of business growth, demonstrating that existing customers are contributing more to revenue through upgrades, addons, or plan transitions. It is advisable to maintain an Expansion MRR higher than the Gross MRR Churn metric to ensure sustainable growth.
Example
In a given period:
Measures the total Monthly Recurring Revenue (MRR) lost due to canceled subscriptions.
Explanation of metric
This metric tracks the total MRR lost when customers cancel their subscriptions. It does not account for the revenue lost from downgrades, only cancellations. It helps in identifying customer churn that impacts the company's revenue and prompts timely actions to reduce further losses.
How it's measured
Total Cancellation MRR = Sum of MRR lost from canceled subscriptions during the period.
Reading
A downward trend indicates a reduction in churn, which is positive for business sustainability.
Interpretation
An increase in Cancellation MRR not only reduces the current revenue stream but also means additional costs to acquire new customers to replace those lost. A rising Cancellation MRR is a warning sign to investigate why customers are canceling, at what point in the customer lifecycle this occurs, and if high-value customers are among those leaving. Understanding these factors can inform strategies to improve retention.
Example
If 5 subscriptions, each generating $100 MRR, were canceled in a month, the Cancellation MRR would be: 5 x $100 = $500
Measures the total Monthly Recurring Revenue (MRR) lost from canceled subscriptions, segmented by country.
Explanation of metric
This metric tracks the MRR lost when customers cancel their subscriptions, broken down by country. It helps businesses identify regions with higher customer churn, offering insights into where cancellations are most prevalent. This metric does not include revenue lost due to customer downgrades, only full cancellations.
How it's measured
Total Cancellation MRR by Country = Sum of MRR lost from canceled subscriptions during the period, segmented by country.
Reading
A downward trend Indicates lower customer churn in specific countries.
Interpretation
This metric helps identify countries where customer churn is highest, enabling the business to take targeted actions. An increase in Cancellation MRR in specific countries could signal issues with product-market fit, regional competition, or customer dissatisfaction. Investigating why customers in these countries are canceling can help inform customer retention strategies and improve localized support.
Measures the total Monthly Recurring Revenue (MRR) lost from canceled subscriptions, segmented by the type of churn (voluntary or involuntary).
Explanation of metric
This metric provides insight into the revenue lost from cancellations based on the reason for churn. A chart displays the MRR lost for each canceled subscription, subcategorized by churn type (voluntary or involuntary). It excludes revenue lost from downgrades and subscriptions canceled within the same activation period.
How it's measured
Total Cancellation MRR by Churn Type = Total MRR of Churned Subscriptions segmented by Churn Type. (voluntary or involuntary).
Cancellations within the same month of Activation are not included.
Reading
A downward trend indicates fewer cancellations.
Interpretation
This metric helps evaluate product offerings, plan pricing, and onboarding experiences by understanding the causes of customer churn. Voluntary churn suggests customer dissatisfaction with perceived value or service quality, while involuntary churn often points to payment or technical issues. Monitoring and analyzing these churn types can refine retention strategies and address the reasons behind cancellations.
Example
In a given period, 15 customers on a $10/month plan voluntarily churned, and 10 customers on a similar plan churned involuntarily.
Measures the total Monthly Recurring Revenue (MRR) lost from canceled subscriptions, segmented by subscription plan.
Explanation of metric
This metric displays the MRR lost due to subscription cancellations, with each bar in a bar chart representing the revenue lost for a specific subscription plan. However, this metric does not include the Revenue lost when a Customer downgrades.
How it's measured
Total Cancellation MRR by Plan = Total MRR of Churned Subscriptions segmented by Plan.
Cancellations within the same period of activation are not included.
Reading
A decrease in this metric is favorable and indicates lower churn and better customer retention.
Interpretation
The Total Cancellation MRR by Plan helps businesses understand how well different subscription plans are performing and whether the product offerings, pricing structure, or onboarding experiences are leading to customer dissatisfaction. It's particularly useful for identifying voluntary churn, where customers cancel due to perceived lack of value in a specific plan. Insights from this metric can guide product improvements and plan adjustments.
Example
In a given period, 15 customers from Plan A ($10/month) and 25 customers from Plan B ($15/month) cancel their subscriptions.
Measures the net gain or reduction in Monthly Recurring Revenue (MRR) over a specific period, accounting for expansions, upgrades, reactivations, cancellations, and churn.
Explanation of metric
This metric defaults to a combo chart, which, in addition to the trendline for Net MRR change, includes a stacked bar chart that illustrates the values of the various components involved in the Net MRR calculation. This chart displays the overall growth of MRR and the individual split of the sub-components contributing to this growth. It is also shown in other visualization types except KPIs, and this is added so that users can easily compare the impact of various MRR components on their Net MRR.
How it's measured
Net MRR Growth = [(New MRR) + (Reactivations MRR) + (Upgrades MRR) + (Free-to-paid MRR) + (Resumed MRR) ]- [(Cancellation MRR) + (Downgrade MRR) + (Paused MRR) + (Active to Trial MRR)]
Reading
A positive trend indicates that the business is growing, with an increase in MRR.
Interpretation
Net MRR Growth is a critical metric for measuring the revenue growth rate of a business. If the net MRR growth exceeds 10% per month, the business is growing at an effective rate. This metric is essential for stakeholders to assess overall business health and make informed decisions about scaling, investing, or adjusting strategies for customer retention.
Example
With exclusions
In a given period:
Without exclusions, the Total Cancellation MRR by Churn Type is:
With exclusions for 5 customers who canceled within the same month of activation:
Thus, Total Cancellation MRR by Churn Type (after exclusions):
Measures the net change in Monthly Recurring Revenue (MRR) over time, segmented by country.
Explanation of metric
This metric visualizes the net change in MRR during a specific period, broken down by country. A chart illustrates how new subscriptions, reactivations, upgrades, cancellations, and churn contribute to the MRR in each country. This metric helps businesses track revenue performance across different regions, offering insights into geographical areas of growth or decline.
How it's measured
Net MRR Growth by Country = [(New MRR) + (Reactivations MRR) + (Upgrades MRR) + (Free-to-paid MRR) + (Resumed MRR ) - (Churn MRR) + (Downgrades MRR)+ (Paused MRR) + (Active to Trial MRR)] by country
Reading
An upward trend in this metric indicates MRR growth, suggesting strong customer acquisition and retention in specific countries.
Interpretation
Net MRR Growth by Country is an essential metric for understanding the sustainability and regional performance of a business. A positive net MRR growth in a country indicates expansion, while a negative net MRR suggests shrinking MRR and potentially high churn rates. If this indicator is persistently negative in a country, it means the business is losing revenue faster than it can expand, signaling a need for a strategic review of that region's sales, marketing, and product-market fit.
Example
If new and reactivated subscriptions in the US contribute $4,000 in MRR, but downgrades, churn, and paused accounts cause a $2,500 loss, the Net MRR Growth for the US would be $1,500.
Measures the net increase or decrease in Monthly Recurring Revenue (MRR) during a specific period, segmented by customer type.
Explanation of metric
This metric shows the net change in MRR for different customer types, accounting for new subscriptions, expansions, reactivations, and churn. A chart visually represents the MRR growth or contraction for each customer type over a period.
To use this metric effectively, you must configure a custom field at the customer resource level in Chargebee and map it to the "Customer Type" field in RevenueStory. While you can set custom values for this field, it's recommended to use values that are meaningful and relevant to your business. This feature is available with RS Premium. For configuration assistance, please contact your Customer Success Manager or email support at support@chargebee.com.
How it's measured
Net MRR Growth by Customer Type = [(New MRR) + (Reactivation MRR) + (Upgrade MRR) + (Free to paid MRR) + (Resumed MRR)] - [(Cancellation MRR) + (Downgrade MRR) + (Paused MRR) + (Active to Trial MRR)] per customer type
Reading
A positive trend signifies that a particular customer type is driving growth, indicating that this segment is highly valuable.
Interpretation
Net MRR Growth by Customer Type helps businesses measure the growth rate across different customer segments. A high growth rate for a specific customer type indicates that this segment aligns well with the product or service offering. Focusing on this customer type can increase revenue further. On the other hand, customer types with low or negative growth may require analysis to understand the reasons for churn or contraction, helping the business identify potential improvements.
Example
At the beginning of the period, the total MRR is $5,000.
Measures the percentage of Monthly Recurring Revenue (MRR) retained over time from subscriptions activated during a specified period (cohort).
Explanation of metric
This metric tracks the retention of MRR from a cohort of subscriptions over the selected period. It provides insight into how much of the original MRR from a group of customers (activated in the same period) is retained over time. A table visualizes MRR retention, with the baseline MRR set at the time of subscription activation. This helps businesses analyze trends in customer retention and the long-term value of cohorts, aiding in understanding customer behavior post-activation.
How it's measured
MRR Retention Cohort = [(Total MRR at a particular period) / (Initial MRR)] x 100.
Initial MRR would be Total MRR at the time of Activation of Subscription. You can segment Total MRR and Initial MRR using Activation Period so that activated Subscriptions within the same Activation Period can be part of a similar Cohort.
Reading
An upward trend in this metric is favorable, indicating strong customer retention and, potentially, product engagement.
Interpretation
MRR Retention Cohort is a strong indicator of early customer churn, lead quality, and product engagement. Cohorts that maintain over 100% retention indicate that expansions, upgrades, or reactivations are outpacing churn, reflecting high lead quality. This metric is useful for analyzing the long-term value of customers and optimizing onboarding strategies for future cohorts.
Example
Cohort 1: 50 new subscriptions activated in the same period
Measures the total Annual Recurring Revenue (ARR) earned from new subscriptions within a specific period.
Explanation of metric
This metric tracks the ARR generated from newly acquired subscriptions, providing a clear picture of revenue growth from new customer acquisitions. A chart visualizes the contribution of new subscriptions to the overall ARR. The metric includes both customers who transition from trial to paid plans and future scheduled activations, making it a comprehensive measure of new ARR.
How it's measured
Total New ARR = Total ARR of the new subscriptions created during the period.
This includes subscriptions transitioning from "In Trial" to paid plans and any future scheduled activations.
Reading
A positive trend indicates growth, driven by new customer acquisitions and trial-to-paid conversions.
Interpretation
Total New ARR is a key metric for understanding the drivers of revenue fluctuations. A decrease in New ARR may signal issues with customer acquisition or onboarding, while an increase suggests a healthy pipeline of new customers. When evaluated alongside other metrics like Expansion ARR and Churn, it helps assess whether the business is growing or shrinking. If both Expansion ARR and New ARR are consistently lower than Churn, the business may be losing more revenue than it gains. On the other hand, higher New ARR combined with strong Expansion ARR indicates sustained MRR growth.
Example
In a given period:
To calculate the Total ARR for new subscriptions:
Total ARR = 150×300 = 45,000
This means that 150 newly acquired paid subscriptions, each with an average annual value of $300, generated a total of $45,000 in new ARR for that period.
If the average subscription value varied across different subscription tiers, the Total New ARR could also be derived by summing up the ARR contributions from each plan. For example, if 100 customers subscribed to a $250/year plan and 50 customers subscribed to a $400/year plan, the calculation would be:
So, the total New ARR would still equal:
Total New ARR = 25,000+20,000= $45,000
This detailed breakdown shows how the $45,000 figure was reached based on subscription volume and value.
Measures the total Annual Recurring Revenue (ARR) earned from new subscriptions, segmented by plan.
Explanation of metric
This metric tracks the ARR generated from new subscriptions, categorized by plan. A chart visualizes the contribution of each plan to the overall New ARR during a given period. The metric provides insights into which plans are driving the most revenue from new customers. It includes both customers transitioning from trial to paid plans and future scheduled activations, offering a detailed view of new ARR by plan.
How it's measured
Total New ARR By Plan = Total ARR of the New subscriptions created during the period per plan.
Includes IN TRIAL to Paid and Future scheduled activations.
Reading
A positive trend in a specific plan indicates that the plan is attracting new customers and driving revenue growth.
Interpretation
Total New ARR by Plan is essential for understanding how individual plans contribute to overall revenue growth. This segmentation helps identify which plans are performing well in terms of new customer acquisition and revenue generation. When analyzed alongside Expansion ARR and Churn, it provides a comprehensive view of the company's growth dynamics. If Expansion ARR and New ARR are lower than Churn, ARR may be shrinking. In contrast, a high New ARR combined with strong Expansion ARR suggests robust revenue growth across plans.
Example
In Q1, for Plan A:
New Subscriptions: 200 new customers transitioned from trial to paid.
Total ARR for New Subscriptions: $60,000
(This is calculated by multiplying the monthly recurring revenue from these new subscriptions by 12.)
For Plan B:
New Subscriptions: 100 new customers activated future scheduled subscriptions.
Total ARR for New Subscriptions: $30,000
Plan C saw fewer new sign-ups:
New Subscriptions: 50 new customers transitioned from trial to paid.
Total ARR for New Subscriptions: $12,000
In this quarter, Plan A contributed the most to new ARR growth with $60,000, showing that it was the most attractive option for new customers. This insight highlights Plan A's effectiveness in customer acquisition, possibly due to its pricing, features, or marketing efforts. Plan B followed with $30,000, while Plan C lagged behind, contributing just $12,000 to the total New ARR.
This example illustrates how Total New ARR by Plan can pinpoint which plans are driving revenue growth, allowing businesses to adjust strategies to improve performance in lower-contributing plans like Plan C, or leverage the success of high-performing ones like Plan A.
Measures the percentage of Monthly Recurring Revenue (MRR) lost from canceled subscriptions during a given period.
Explanation of metric
This metric tracks the rate at which revenue is lost due to canceled subscriptions. It provides a point-in-time indicator of churn, helping businesses understand the impact of cancellations on their recurring revenue. Cancellations within the same period of activation are excluded from this calculation. A lower cancellation rate suggests better customer retention, while a higher rate may indicate issues with product value, pricing, or customer satisfaction.
How it's measured
Cancellation MRR Rate = [(Total MRR of Churned Subscriptions during a period) / (MRR at the beginning of that period)] X 100.
Cancellations within the same month of activation are excluded.
Reading
A decreasing cancellation rate indicates improved customer retention and a reduction in lost revenue.
Interpretation
The Cancellation MRR Rate is a key metric for understanding customer churn and its impact on recurring revenue. It helps identify which plans are contributing to the highest churn rates, offering insights into potential areas for improvement, such as pricing optimization or product enhancements. A low cancellation rate suggests that the product is meeting customer needs, while a high rate may signal a need for intervention to retain customers.
Example
In a given period, 200 customers are on Plan A ($10/month).
Measures the percentage of Monthly Recurring Revenue (MRR) lost from canceled subscriptions, segmented by churn type (Voluntary or Involuntary).
Explanation of metric
This metric tracks the rate at which revenue is lost from both voluntary and involuntary cancellations, helping businesses differentiate between customers who choose to cancel (voluntary) and those who are canceled due to reasons like payment failures (involuntary). A chart visualizes the percentage of MRR lost from each churn type. This provides insights into the reasons for cancellations and the potential need for targeted interventions.
How it's measured
Cancellation MRR Rate by Churn Type = [(Cancellation MRR for a particular churn type during the period / Total MRR at the beginning of the period)] x 100
Cancellations within the same month of activation are excluded.
Reading
A lower cancellation rate for both voluntary and involuntary churn is desirable, indicating better customer retention and fewer lost subscriptions.
Interpretation
This metric helps identify which churn type (voluntary or involuntary) contributes more to revenue loss and is useful for prioritizing actions. For example, voluntary churn might require improvements in customer satisfaction or pricing adjustments, while involuntary churn might indicate a need for better payment recovery strategies. Monitoring this metric helps in optimizing both the product offering and operational processes to reduce churn.
Example
Total active subscriptions at the beginning of the period: 100
Measures the net percentage change in Monthly Recurring Revenue (MRR) over a specified period.
Explanation of metric
This metric tracks the overall growth or contraction of MRR, considering both expansion and contraction activities for existing subscriptions. A trend line visualizes the rate of MRR change at the end of a particular period, helping to identify growth trends and patterns in revenue stability.
How it's measured
Net MRR Growth Rate = {(New MRR + Reactivation + Upgrade + Free to paid MRR + Resumed MRR) - (Cancellation MRR + Downgrades )+ (Active to Trial MRR)/(MRR at the beginning of period)} * 100
Reading
A positive rate indicates growth in revenue, reflecting successful customer acquisition and retention strategies.
Interpretation
The Net MRR Growth Rate is essential for measuring the overall health and growth rate of the business. Industry experts typically consider a Net MRR growth rate of 10-20% to be a strong indicator of business performance. This metric allows businesses to assess the effectiveness of their sales and retention strategies and adjust tactics as needed to drive growth.
Example
In a given period, the total MRR at the beginning is $5,000.
Measures the additional Monthly Recurring Revenue (MRR) earned from subscriptions that have been upgraded to higher plans.
Explanation of metric
This metric tracks the MRR generated when subscriptions transition from existing plans to higher-tier plans. A bar chart visualizes the additional revenue attributed to these upgrades, including any revenue from add-ons added to the subscriptions. A point-in-time KPI reflects the current period's MRR from upgrades and compares it with the previous period, showing the percentage change over time.
How it's measured
Total Upgrade MRR = Total MRR increase due to upgrades of active subscriptions during the period
This is calculated in comparison to the previous period.
Reading
A rising upgrade MRR indicates effective scaling of the product and customer growth.
Interpretation
Total Upgrade MRR reflects the revenue growth driven by customers moving to higher pricing plans. An increase in this metric suggests that customers see value in the upgraded plans, indicating successful product scalability. Conversely, if this number is stagnant or declining, it may indicate that customers are receiving too much value from lower-tier plans, which could disincentivize upgrades.
Example
In a given period,
Measures the additional Monthly Recurring Revenue (MRR) earned from upgraded subscriptions, segmented by Customer Type.
Explanation of metric
This metric illustrates the MRR generated when subscriptions transition from existing plans to higher-tier plans for each Customer Type. A stacked bar chart visualizes the increase in MRR, including any additional revenue from add-ons.
This metric is available with RS Premium only. To utilize it effectively, a custom field must be configured at the Customer resource level in Chargebee and mapped to the Customer Type in RevenueStory. It's recommended to choose meaningful values relevant to your business for this custom field. For assistance, contact your Customer Success Manager or support@chargebee.com.
How it's measured
Total Upgrade MRR by Customer Type = Total MRR difference gained from active subscriptions upgraded during the period per Customer Type
This is calculated in comparison to the previous period.
Reading
An increasing upgrade MRR for a specific Customer Type indicates effective scaling and customer satisfaction with the product offerings.
Interpretation
An increase in Upgrade MRR for a particular Customer Type signifies that your product is resonating well with those customers. It suggests that having the right features across all plans and continuously adding valuable new features encourages customers to upgrade. Monitoring this metric helps businesses identify successful segments and tailor their offerings accordingly.
Example
In a given period, for Customer Type 1, 75 subscriptions upgraded from Plan A ($35/month) to Plan B ($50/month).
Upgrade MRR by Customer Type = 75 x ($50 - $35) = $1,125
Measures the total Monthly Recurring Revenue (MRR) lost from downgraded subscriptions.
Explanation of metric
This metric depicts the reduction in MRR due to subscriptions being downgraded, which may result from the removal of add-ons or decreases in subscription quantities due to recurring discounts. A trend line visualizes the changes in Downgrade MRR over time. Additionally, a point-in-time KPI indicates the current period's Downgrade MRR, along with variance comparisons to previous periods and percentage changes across different time frames.
How it's measured
Total Downgrade MRR = Total decrease in MRR of active subscriptions due to subscription changes
Reading
A decreasing Downgrade MRR indicates improved customer retention and satisfaction.
Interpretation
Total Downgrade MRR is a critical financial metric that influences MRR velocity. A high Downgrade MRR suggests that customers may not find sufficient value in their current plans relative to the price they pay, indicating potential issues with product offerings or pricing strategies. Monitoring this metric can help identify areas for improvement to enhance customer satisfaction and retention.
Example
In a given period, a subscription (Customer) has moved from Plan A (MRR $500) to Plan C (MRR $100).
Downgrade MRR = $500 - $100 = $400
Measures the total Monthly Recurring Revenue (MRR) lost from downgraded subscriptions, segmented by Customer Type.
Explanation of metric
This metric provides a chart representation of the reduction in MRR due to downgrades, which may result from removing add-ons or decreasing subscription quantities, categorized by Customer Type. It also considers recurring discounts.
The metric is available only with RS Premium. To use it more efficiently, you must configure a custom field at the Customer resource level in Chargebee and map it to the Customer Type field in RevenueStory. You can configure and select custom values, but it is recommended to configure values relevant to your business. For setup, contact your Customer Success Manager or Chargebee support.
How it's measured
Total Downgrade MRR by Customer Type = Total decrease in MRR of active subscriptions due to subscription changes per Customer Type
Cancellations and subscriptions moved to "IN TRIAL" are not included in this report.
Reading
A decreasing Downgrade MRR indicates improved customer satisfaction and retention across specific Customer Types.
Interpretation
If the Downgrade MRR is high for a particular Customer Type, it suggests that these customers do not perceive enough value in their current plans relative to the price they pay, leading to downgrades. In such cases, consider adding relevant, high-value features to higher-tier plans. Engage with the Customer Success team to gather feedback from these customers and relay insights to the product team for improvements.
Example
In a given period,
Measures the total Monthly Recurring Revenue (MRR) lost from downgraded subscriptions, segmented by Business Type.
Explanation of metric
This metric provides a bar chart representation of the total revenue lost due to downgraded subscriptions for each Business Type. It also accounts for recurring discounts that may influence the downgrade.
This metric is available only with RS Premium, to use this metric more effectively, you need to configure a custom field at the Customer resource level in Chargebee and map it to the Business Type field in RevenueStory. You can set and select custom values, but it is recommended to configure meaningful values that align with your business. For assistance, connect with your Customer Success Manager or Chargebee support.
How it's measured
Total Downgrade MRR by Business Type = Total decrease in MRR of active subscriptions due to subscription changes per Business Type
Cancellations and subscriptions moved to "IN TRIAL" are excluded.
Reading
A reduction in Downgrade MRR indicates improved customer satisfaction and retention across specific Business Types.
Interpretation
If the Downgrade MRR is high for a particular Business Type, it suggests that customers from this segment are not finding sufficient value in their current plans, leading to downgrades. Price changes may also trigger downgrades. In such cases, consider enhancing the value provided in higher-tier plans. Engage the Customer Success team to gather feedback from affected customers, and relay these insights to the product team for potential improvements.
Example
In a given period, an E-Commerce customer downgrades from Plan A (MRR $500) to Plan C (MRR $100).
Downgrade MRR by Business Type (E-Commerce) = $500 - $100 = $400.
Measures the additional Monthly Recurring Revenue (MRR) earned from active subscriptions that transition from free plans to paid plans.
Explanation of metric
A trend line visualizes the MRR generated by subscriptions that have moved from free plans to paid plans. Additionally, a point-in-time Key Performance Indicator (KPI) is available to show the current period's free-to-paid MRR and the variance compared to the previous period, alongside the percentage change in MRR across both periods.
How it's measured
Total Free to Paid MRR = Total MRR when an ACTIVE Subscription moves from Free to Paid
This excludes conversions from "IN TRIAL" to "ACTIVE."
Reading
Indicates increased revenue from converting free users to paying customers, signaling product value and successful customer retention.
Interpretation
An increase in Free to Paid MRR suggests that customers find the product or service offering valuable enough to move from a free plan to a paid plan. This metric is a strong indicator of the success of the freemium model and can be used to track the transition of users from free to paid plans. Monitoring this metric helps businesses understand how well they are converting free users to paying customers and can guide strategies for improving user onboarding, product engagement, and feature offerings.
Example
For a given period:
Tracks the additional Monthly Recurring Revenue (MRR) earned from subscriptions that move from free to paid plans, segmented by specific plans.
Explanation of metric
This chart visualizes the MRR generated from subscriptions that transitioned from free to paid, categorized by the respective plans. A point-in-time Key Performance Indicator (KPI) highlights the MRR generated from free-to-paid transitions during the current period. It also shows the variance compared to the previous period and the percentage change in MRR across both periods.
How it's measured
Total Free to Paid MRR by Plan = Change in MRR when an ACTIVE Subscription moves from FREE to PAID Plan
Reading
An upward trend Indicates the product is successfully converting free users to paying customers, boosting revenue.
Interpretation
This metric shows how well each plan converts free users to paying customers. A consistent increase implies that the product's value is compelling users to upgrade from free to paid plans. If the metric shows a downward trend, it may indicate that the value offered by the free plan is sufficient for customers, or there is a misalignment between customer expectations and the perceived value of the paid plans. Analyzing this by plan provides insights into which pricing tiers need adjustment.
Example
For a given period:
Tracks the additional Monthly Recurring Revenue (MRR) generated from previously churned or canceled subscriptions that have been reactivated under paid plans.
Explanation of metric
A chart shows the MRR earned from reactivated subscriptions, where customers who previously churned or canceled their subscriptions have returned to paid plans. This metric also has a point-in-time Key Performance Indicator (KPI) that displays the current Reactivation MRR, compares it to the previous period, and highlights percentage changes across periods.
How it's measured
Total Reactivation MRR = Total MRR of subscriptions reactivated after cancellation.
Reactivations that occur in the same period as the cancellation are excluded.
Reading
An upward trend Indicates strong re-engagement and retention efforts.
Interpretation
A rise in this metric shows effective efforts by the marketing or customer success teams to win back previously churned customers. However, businesses should also assess the costs involved in reactivation. Higher Reactivation MRR indicates returning customers still find value in the product or service.
Example
During a given period:
Tracks the additional Monthly Recurring Revenue (MRR) generated from previously canceled subscriptions that have been reactivated, segmented by the specific plans to which customers returned.
Explanation of metric
A chart displays the MRR earned from reactivated subscriptions segmented by plan. This allows for tracking which plans are most effective in regaining lost customers.
How it's measured
Total Reactivation MRR by Plan = Total MRR of subscriptions reactivated after cancellation, segmented by plan.
Reactivations that occur in the same period as the cancellation are excluded.
Reading
An upward trend indicates successful customer re-engagement and retention for specific plans.
Interpretation
This metric highlights the revenue regained from reactivating lost customers, broken down by plan. Higher Reactivation MRR for a particular plan suggests that the plan continues to offer value to returning customers. If certain plans show low reactivation, they may need further attention in terms of features or pricing.
Example
During Q2, for Plan A:
For Plan B:
Plan C had a lower number of reactivations:
In this quarter, Plan A saw the highest Reactivation MRR with $1,200, indicating strong customer re-engagement efforts. Plan B followed closely with $1,000, suggesting that while fewer customers reactivated, the higher price point contributed to meaningful MRR recovery. Plan C lagged behind with just $240 in reactivation, indicating a potential need to revise the features or pricing to attract more returning customers.
Tracks the expected loss in Monthly Recurring Revenue (MRR) from subscriptions that are scheduled to be canceled in the future.
Explanation of metric
A table displays the total MRR associated with future cancellations, allowing teams to anticipate potential revenue loss and take proactive measures.
How it's measured
Total Scheduled Cancellation MRR = Total MRR of subscription cancellations that are scheduled in the future
Reading
A downward trend indicates fewer scheduled cancellations, meaning lower future revenue loss.
Interpretation
A rise in Scheduled Cancellation MRR signals potential future churn, prompting the need for immediate intervention. This could involve offering additional value, providing incentives, or addressing customer concerns to retain at-risk customers. Reducing scheduled cancellations helps prevent future revenue leakage.
Example
For the next month:
The projected Monthly Recurring Revenue (MRR) considering all scheduled changes such as upgrades, downgrades, and cancellations.
Explanation of metric
A table displays the Committed Monthly Recurring Revenue (CMRR) as a projection of how your current MRR will evolve over the next 12 months. It includes any future scheduled upgrades, downgrades, or cancellations, providing a clearer view of your revenue trajectory.
How it's measured
Total CMRR = [(Total MRR at the beginning) + (New MRR) + (Expansion MRR) - (Contraction MRR)]
Reading
An upward trend indicates growth in future revenue.
Interpretation
CMRR provides a more reliable financial forecast than MRR alone, as it factors in scheduled changes like churn and expansion. It is especially useful for revenue forecasting and assessing a SaaS company's financial health over time. By incorporating future downgrades and cancellations, CMRR offers a more conservative and accurate outlook for future revenue. This metric can also be used to make more informed strategic decisions.
Example
In a given period:
The ratio of Monthly Recurring Revenue (MRR) expansion to contraction within a given period.
Explanation of metric
The Quick Ratio is a point-in-time Key Performance Indicator (KPI) that measures the balance between MRR inflow (new subscriptions and expansions) and MRR outflow (downgrades and cancellations). It highlights how efficiently your business is growing by comparing the amount of revenue gained to the amount lost within a specific period.
How it's measured
Quick Ratio = [(New MRR + Expansion MRR) / (Downgrade MRR + Cancellation MRR)]
Cancellations made in the same month as activation are excluded from this metric.
Reading
An upward trend indicates that the business is growing faster than it's contracting.
Interpretation
The Quick Ratio provides insight into whether the business is expanding or shrinking. A higher ratio indicates that your company is adding more revenue than it's losing. While it is a useful growth indicator, it should be analyzed alongside other financial metrics like Customer Acquisition Cost (CAC) and Customer Lifetime Value (LTV) to gain a fuller understanding of overall growth efficiency.
Example
In a given period:
Click here to view this report.
Click here to view this report.
Click here to view this report.
Click here to view this report.
Click here to view this report.
Click here to view this report.
Click here to view this report.
Click here to view this report.
Total Monthly Recurring Revenue (MRR) lost due to cancelled subscriptions.
Explanation of metric
This metric is visualized as a trend line that shows the reduction in MRR due to subscription cancellations. A point-in-time Key Performance Indicator (KPI) also reflects the MRR churn for the current period, comparing it with the previous period and showing percentage change in MRR churn over time.
How it's measured
Total MRR Churn = Cancellation MRR
Reading
A downward trend indicates lower MRR loss from cancellations.
Interpretation
Total MRR Churn is a critical metric for monitoring business health. It highlights the revenue lost to cancellations and helps differentiate between voluntary and involuntary churn.
Example
In a given period:
Gross Monthly Recurring Revenue (MRR) lost due to paused, cancelled, or downgraded subscriptions.
Explanation of metric
This metric is visualized through multiple chart types (Spline, Line, Bar, Stacked Bar, 100% Stacked Bar, KPI, Area Spline, Area chart) to depict the reduction in MRR resulting from changes in subscription status, such as cancellations, downgrades, pauses, or transitions from active to trial plans. A point-in-time Key Performance Indicator (KPI) also reflects the Gross MRR Churn for the current period, highlighting the variance with the previous period and showing percentage changes in MRR churn over time.
How it's measured
Gross MRR Churn = Downgrade MRR + Cancellation MRR + Paused MRR + Active to Trial MRR
Reading
A downward trend indicates a reduction in overall revenue loss due to churn.
Interpretation
Gross MRR Churn is crucial for understanding overall revenue loss and areas where customer retention or satisfaction can be improved. This metric captures the comprehensive impact of customer churn on MRR, emphasizing the need for effective strategies to minimize churn, whether through upgrades, retention efforts, or addressing customer pain points.
Example
In a given period:
Downgrade MRR: 50 customers downgraded from a $40/month plan to a $20/month plan.
Downgrade MRR = 50 × ($40 − $20) = $1,000.
Paused MRR: 30 customers paused their $30/month subscription.
Paused MRR = 30 × $30 = $900.
Active to Trial MRR: 20 customers switched from a $50/month active subscription to a trial with no monthly fee.
Active to Trial MRR = 20 × $50 = $1,000.
Cancellation MRR: 100 customers on Plan A ($20/month) CANCELLED their subscriptions.
Cancellation MRR = 100 × $20 = $2,000.
The Gross MRR Churn for this period is:
$1,000 (Downgrade) + $900 (Paused) + $1,000 (Active to Trial) + $2,000 (Cancellation) = $4,900.
This total reflects the comprehensive monthly revenue loss across all types of churn.
Indicates how an existing set of subscriptions that were active 12 months ago has evolved in terms of Monthly Recurring Revenue (MRR) over the current period.
Explanation of metric
A chart visualizes the current MRR of subscriptions that were active 12 months ago and tracks how much their value has expanded or contracted over time. A point-in-time Key Performance Indicator (KPI) reflects Net MRR Expansion for the current period and provides a comparison with the previous period, including percentage changes in MRR.
This report is available with RS Premium only. Contact your Customer Success Manager or support@chargebee.com to enable this feature.
How it's measured
Net Dollar Expansion = (Total MRR during the current period) - (Total MRR in the previous period)
Reading
An upward trend indicates growth in MRR from existing customers over time.
Interpretation
This metric helps to track the evolution and growth of the existing customer base over the past 12 months. It is a crucial indicator of customer retention and expansion, providing insight into whether your product is adding more value to customers over time and leading to increased revenue from the same customer set.
Example
In a given period:
Additional Annual Recurring Revenue (ARR) earned from existing subscriptions that have been upgraded, reactivated, or transitioned from free to paid plans.
Explanation of metric
A chart displays the Expansion ARR generated from upgraded subscriptions, free-to-paid conversions, reactivations, and transitions from paused to paid subscriptions. This visualization highlights the total revenue growth from existing customers.
How it's measured
Total Expansion ARR = Expansion MRR x 12
Expansion MRR = [(Upgrade MRR) + (Free to Paid MRR) + (Reactivation MRR) + (PAUSE To Paid MRR)]
Reading
An upward trend indicates revenue growth from existing customers.
Interpretation
An increase in Total Expansion ARR indicates positive revenue growth from your existing customer base, which is a strong signal that the business is expanding without relying solely on acquiring new customers. To ensure sustainable growth, it is recommended that you maintain a higher Expansion ARR than Gross ARR Churn.
Example
In a given period:
Additional Annual Recurring Revenue (ARR) earned from upgraded, reactivated, and free-to-paid subscriptions, segmented by specific plans.
Explanation of metric
A chart displays the Expansion ARR from existing subscriptions categorized by plan. This visualization helps in understanding which plans are contributing the most to the expansion of ARR.
How it's measured
Total Expansion ARR by Plan = (Expansion MRR by Plan x 12)
Expansion MRR by Plan = [(Upgrade MRR) + (Free to Paid MRR) + (Reactivation MRR) + (PAUSE To Paid MRR)] per plan
Reading
An upward trend indicates growth in ARR across various plans from existing customers.
Interpretation
An increase in Expansion ARR by Plan signals that customers on specific plans are either upgrading or reactivating their subscriptions, contributing to the growth in ARR. It's important to monitor this metric across different plans to identify which plans are driving the most revenue. Keeping Expansion ARR higher than Gross ARR Churn is crucial for maintaining sustainable business growth.
Example
In Q3, for Plan A:
Expansion MRR (Plan A): $10,000 from upgrades, free-to-paid conversions, and reactivations.
Expansion ARR (Plan A): $10,000 × 12 = $120,000.
For Plan B:
Expansion MRR (Plan B): $18,000.
Expansion ARR (Plan B): $18,000 × 12 = $216,000.
Total Expansion ARR across both plans equals $336,000, indicating strong growth from existing customers upgrading or reactivating their subscriptions. Plan B contributes more to expansion, signaling it may offer more attractive features or incentives for upgrading.
This example shows an annualized revenue increase of $384,000 from specific plans, indicating significant growth from customers using these plans.
Total Monthly Recurring Revenue (MRR) lost from subscriptions that have been paused.
Explanation of metric
A trend line illustrates the monthly recurring revenue loss associated with paused subscriptions. Additionally, a point-in-time KPI indicates the MRR lost from paused subscriptions in the current period, along with a comparison to the previous period and the percentage change between both periods.
How it's measured
Total Paused Subscription MRR = Change in MRR when an ACTIVE paid subscription transitions to PAUSED status.
Reading
A downward trend in the "Total Paused Subscription MRR" metric indicates a reduction in the loss of MRR due to paused subscriptions.
Interpretation
While paused subscriptions are not categorized as churn, they do affect overall MRR. A rise in paused subscription MRR suggests that customers may be facing challenges that lead them to temporarily suspend their subscriptions, indicating potential issues with customer satisfaction or product value. Monitoring this metric can help identify trends in customer engagement and inform retention strategies.
Example
In a given period:
Total Annual Recurring Revenue (ARR) lost from cancelled subscriptions.
Explanation of metric
A chart visually represents the Total ARR Churn, illustrating the revenue lost due to cancellations over the year.
How it's measured
Total ARR Churn = 12 x Total MRR Churn
Total MRR Churn is equivalent to Cancellation MRR.
Reading
A downward trend indicates a reduction in ARR lost due to cancellations.
Interpretation
This metric is crucial for monitoring the overall health of the business. It helps identify whether churn is voluntary (customers canceling subscriptions due to dissatisfaction or perceived lack of value) or involuntary (cancellations due to issues like expired credit cards). Understanding these dynamics can guide retention strategies and inform product improvements.
Example
In a given period:
Total Annual Recurring Revenue (ARR) lost from paused, cancelled, or downgraded subscriptions, segmented by plan.
Explanation of metric
A chart visually represents the Gross ARR churn, segmented by each subscription plan, illustrating how much revenue is lost due to cancellations and downgrades across different plans.
How it's measured
Gross ARR churn by Plan = 12 x Gross MRR churn by plan
Gross MRR churn by Plan = Cancellation MRR per plan
Reading
A downward trend indicates a reduction in ARR due to churn.
Interpretation
This metric is essential for monitoring the overall health of the business. It helps distinguish between voluntary churn (customers canceling due to dissatisfaction or perceived lack of value) and involuntary churn (e.g., cancellations due to expired credit cards). Understanding churn by plan can guide targeted retention strategies and identify areas for improvement.
Example
In a given period:
Annual Recurring Revenue (ARR) earned from subscriptions.
Explanation of metric
A chart illustrates the total predictable Annual Recurring Revenue generated from subscriptions. This metric provides a clear visual representation of the ARR over time.
A point-in-time KPI is also available, representing the total ARR during the current period. It displays the change in ARR compared to the previous period and shows the percentage change across different periods.
How it's measured
Total ARR = Total MRR x 12 during the period
Total MRR is calculated based on subscriptions during the period.
Included in Total MRR by Plan:
Included in Total MRR by Plan (If Configured):
Excluded from Total MRR by Plan:
Reading
An upward trend indicates growth in ARR.
Interpretation
Total ARR is a crucial metric for understanding the factors contributing to fluctuations in Annual Recurring Revenue. Analyzing this metric helps identify trends, evaluate the effectiveness of pricing strategies, and assess customer retention efforts, providing valuable insights for business growth.
Total Annual Recurring Revenue earned from subscriptions, segmented by Addon.
Explanation of metric
A chart illustrates the predictable Annual Recurring Revenue generated from subscriptions, segmented by each addon. The Total ARR by Addon reflects the ARR contributed by each addon, allowing for a detailed view of revenue streams.
How it's measured
Total ARR by Addon = (12 x Total MRR per addon)
ARR is derived from MRR, which includes recurring subscription components such as plans, addons, coupons, and any non-recurring components based on the settings configured in Chargebee. For clarity, refer to the formula for Total MRR by Addon.
Reading
An upward trend indicates growth in ARR from addons.
Interpretation
Total ARR by Addon provides insights into the recurring revenue generated from specific addons within your subscription model over a defined period. Analyzing this metric helps identify which addons are contributing positively or negatively to overall revenue, enabling informed decisions about product offerings and marketing strategies.
Example
In a given period, for a particular addon (Addon A):
Total MRR (Addon A) = $50,000
Total ARR by Addon (Addon A) = 50,000×12 = 600,000
Refer to the calculation for Total MRR by Addon for a deeper understanding of the MRR calculation per addon.
Total Annual Recurring Revenue earned from subscriptions, segmented by Plan.
Explanation of metric
A chart illustrates the predictable Annual Recurring Revenue generated from subscriptions, segmented by each plan. The Total ARR by Plan reflects the ARR contributed by each plan, providing a comprehensive view of revenue sources.
How it's measured
Total ARR by Plan = (12 x Total MRR per plan)
ARR is derived from MRR, which includes recurring subscription components such as plans, addons, coupons, and any non-recurring components based on the settings configured in Chargebee.
Reading
An upward trend indicates growth in ARR from plans.
Interpretation
This metric provides an overview of business performance on an annual basis. It enables SaaS and similar businesses to forecast growth more accurately, helping identify strong and weak areas in their subscription offerings.
Example
In a given period, for a particular plan (Plan A):
The net change in Annual Recurring Revenue over time.
Explanation of metric
A chart illustrates the net increase or decrease in Annual Recurring Revenue during the period, considering new, expansion, and churn ARR.
How it's measured
Net ARR Growth = [(New MRR) + (Reactivations MRR) + (Upgrades MRR) + (Free-to-paid MRR) + (Resumed MRR) - (Churn MRR) + (Downgrades MRR)+ (Paused MRR) + (Active to Trial MRR)] x 12
Reading
An upward trend indicates growth in ARR.
Interpretation
Tracking this metric is critical, as it reflects the net impact of all expansions and contractions in ARR. There are three key levers to control this metric: minimizing churn, driving upgrades from existing customers, and adding new paying customers.
The net change in Annual Recurring Revenue during the period segmented by country.
Explanation of metric
A chart illustrates the net change in Annual Recurring Revenue during the period, segmented by country.
How it's measured
Net ARR Growth by Country = [(New MRR) + (Reactivations MRR) + (Upgrades MRR) + (Free-to-paid MRR) + (Resumed MRR ) - {(Churn MRR) + (Downgrades MRR)+ (Paused MRR) + (Active to Trial MRR)}] x 12 by country
Reading
An upward trend indicates growth in ARR.
Interpretation
Tracking this metric is critical, as it reflects the net impact of all expansions and contractions in ARR. There are three key levers to control this metric: minimizing churn, driving upgrades from existing customers, and adding new paying customers, segmented by country. Improving the first two can significantly increase overall profitability without incurring additional expenses on new customer acquisition.
Example
In a given period for Country A:
New MRR: $25,000
Reactivations MRR: $5,000
Upgrades MRR: $10,000
Free-to-paid MRR: $8,000
Resumed MRR: $3,000
Churn MRR: $15,000
Downgrades MRR: $2,000
Paused MRR: $1,000
Active to Trial MRR: $0
Net ARR Growth for Country A:
Net ARR Growth=[(25,000+5,000+10,000+8,000+3,000)−(15,000+2,000+1,000+0)]×12 = 396,000
For Country B:
Net ARR Growth: $15,000.
Total Net ARR Growth across both countries would be $411,000, indicating strong performance in expanding revenue despite some churn.
Articles & FAQ