Glossary

Subscription metrics in one sentence each, with the formula and the decisions hiding behind it.

Monthly recurring revenue (MRR)

MRR is what your customers have agreed to pay you per month from now on, the monthly value of all active subscriptions.

Annual recurring revenue (ARR)

ARR is MRR times twelve, the yearly value of your recurring revenue at today's run rate.

MRR movements

MRR movements explain why MRR changed, new business, expansion, contraction, churn and reactivation, each by customer.

Customer churn rate

The customer churn rate is the share of paying customers at the start of a period who stopped paying during it.

Gross and net MRR churn rate

Gross MRR churn is the MRR lost to cancellations and downgrades as a share of starting MRR; net MRR churn subtracts expansion and reactivation from that loss.

Net revenue retention (NRR)

NRR is what the customers of twelve months ago pay today, as a share of what they paid then, including upgrades and excluding new customers.

Gross revenue retention (GRR)

GRR is NRR without the upgrades, no customer counts for more than they paid twelve months ago, so it can never exceed 100 %.

Average revenue per account (ARPA)

ARPA is MRR divided by the number of paying customers.

MRR at risk

MRR at risk is recurring revenue that still counts today but is in doubt, a failed payment, a scheduled cancellation, or a customer who stopped using the product.

Proration

Proration is billing only the unused or additional part of a period when a subscription changes in the middle of it.

Month close

Closing a month freezes its reported figures a few days after it ends, so that a later change becomes a visible restatement instead of a silent edit.

Restatement

A restatement is a dated record that a closed month's figures changed, with the reason, the figures before and after, and the customers behind the difference.

Trial conversion rate

The trial conversion rate is the share of trials that became paying customers, measured per cohort of trials that started in the same month.

Reconciliation with Stripe

Reconciliation checks that the value an analytics tool gives each subscription equals what Stripe's own invoice bills for it.