Calculations of Key Subscription Metrics

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Calculations of Key Subscription Metrics

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Insights displays key subscription metrics as interactive cards on the Overview dashboard. Each key subscription metric is calculated by a pre-built report in Insights Analysis, using data from your Zuora tenant.

The following table describes how each key subscription metric is calculated.

Metric Description

ARPA (CMRR)

Only available if the Orders feature is not enabled.

Average contracted MRR per active account. An account is active if it has a subscription with an effective rate plan charge.

For the current calendar month, this metric is calculated on the current date. For previous calendar months, this metric is calculated on the last day of the month.

This metric is reported in the home currency configured in your Zuora tenant.

Calculation:
Current CMRR divided by the number of accounts that were active on the calculation date

Current CMRR

Only available if the Configurable Dashboard feature is not enabled and the Orders feature is not enabled.

Contracted MRR across all accounts.

For the current calendar month, this metric is calculated on the current date. For previous calendar months, this metric is calculated on the last day of the month.

This metric is reported in the home currency configured in your Zuora tenant.

Calculation:
Sum of “Booking Metrics: Change in MRR” for all rate plan charges with “Contract Effective Date” earlier than (or equal to) the calculation date

Note: The Highest Revenue Products By CMRR metric breaks down your products by how much each product currently contributes to the contracted MRR across all accounts.

Customer Changes

Month-on-month increase or decrease in active accounts, broken down by new customers and churned customers.

For the current calendar month, this metric is calculated on the current date. For previous calendar months, this metric is calculated on the last day of the month.

On the Overview dashboard, a flat line above 0 represents a constant net increase in active accounts. Data is reported for the last day of each month.

Calculation for new customers:

The number of accounts that were active on the calculation date but inactive (or nonexistent) at the end of the previous calendar month

Calculation for churned customers:

Number of accounts that went from active to inactive between the end of the previous calendar month and the calculation date. Accounts that were created and became inactive in this period are not counted

Days Sales Outstanding

Only available if the Orders feature is not enabled.

Daily sales outstanding, calculated at the end of a 90 day period. Lower values represent faster revenue collection.

For the current calendar month, this metric is calculated on the current date. For previous calendar months, this metric is calculated on the last day of the month.

Calculation:
(AR Balance divided by Invoice Amount 90 Day) × 90

Calculation of AR Balance:
Sum of “Change in Account Balance” for all posted or processed transactions with “Transaction Date” earlier than or equal to the calculation date

Calculation of Invoice Amount 90 Day:
Sum of “Amount” for all invoices with:

  • “Status” equal to “Posted”
  • “Invoice Date” between 0 and 90 days prior to the calculation date

Highest Revenue Products By CMRR

Only available if the Orders feature is not enabled.

The amount that each product currently contributes to the contracted MRR across all accounts.

Monthly Customer Churn Rate

Customer churn rate, calculated as the proportion of active accounts that became inactive during the calendar month. Accounts created during the calendar month are not considered. An account is active if it has a subscription with an effective rate plan charge.

A value of 20% indicates that 20% of the accounts that were active at the end of the previous calendar month are now inactive.

For the current calendar month, this metric is calculated on the previous calendar day. This means that the metric is always 0 on the first day of the current calendar month. For previous calendar months, the metric is calculated on the last day of the month.

Calculation:
Churn Subscriber Count divided by the number of accounts that were active at the end of the previous calendar month

Calculation of Churn Subscriber Count:
Number of accounts that went from active to inactive during the calendar month. Accounts that were created and became inactive during the calendar month are not counted

MRR Changes

Only available if the Orders feature is not enabled.

Month-on-month increase or decrease in MRR across all accounts, broken down by business impact.

For the current calendar month, this metric is calculated on the current date. For previous calendar months, this metric is calculated on the last day of the month.

On the Overview dashboard, a flat line above 0 represents a constant net increase in MRR. Data is reported for the last day of each month.

This metric is reported in the home currency configured in your Zuora tenant.

Calculation for each type of business impact:

  • New Business - Increase in MRR from new customers during the calculation period.
  • Expansion - Increase in MRR from existing customers during the calculation period.
  • Contraction - Decrease in MRR from existing customers who do not fully churn during the calculation period.
  • Churn - Decrease in MRR from customers who fully churn during the calculation period.
  • No Change - Customers who had booking events (e.g., renewals or owner transfers) during the calculation period, but that had no overall change in MRR during the calculation period.
  • Owner Transfer - MRR changes during the calculation period associated with transferring ownership of a subscription from one account to another.

The calculation period is the time between the beginning of the calendar month and the calculation date.

The calculation does not include non-zero price changes on renewals or changes to terms and conditions. See Limitations and Known Issues for more information.

If you do not have the Configurable Dashboard feature enabled, this metric is calculated as the sum of “Booking Order Metrics: Change in MRR” for all rate plan charges with the appropriate “Business Impact” and “Contract Effective Date”. This calculation does not include discounts.

Net Billing

Month-on-month increase or decrease in billing across all accounts, broken down by type of billing item.

For the current calendar month, this metric is calculated on the current date. For previous calendar months, this metric is calculated on the last day of the month.

This metric is reported in the home currency configured in your Zuora tenant.

Calculation for each type of billing item:
Sum of “Change in Account Balance” for all posted or processed transactions with:

  • The appropriate “Transaction Type”
  • “Transaction Date” between the beginning of the calendar month and the calculation date

Net MRR

Only available if the Configurable Dashboard feature is enabled and the Orders feature is not enabled.

MRR across all accounts, net of subscription and charge level discounts.

For the current calendar month, this metric is calculated on the current date. For previous calendar months, this metric is calculated on the last day of the month.

This metric is reported in the home currency configured in your Zuora tenant.

Calculation:
Sum of "Order Mrr: Value" for all order actions with “Contract Effective Date” earlier than (or equal to) the calculation date

The calculation does not include non-zero price changes on renewals. See Limitations and Known Issues for more information.

Net Payments

Month-on-month increase or decrease in payments across all accounts, broken down by type of payment item.

For the current calendar month, this metric is calculated on the current date. For previous calendar months, this metric is calculated on the last day of the month.

This metric is reported in the home currency configured in your Zuora tenant.

Calculation for each type of payment item:
Sum of “Change in Account Balance” for all posted or processed transactions with:

  • The appropriate “Transaction Type”
  • “Transaction Date” between the beginning of the calendar month and the calculation date

Annual Net Retention

Only available if the Orders feature is not enabled.

Retention rate of contracted MRR across all accounts, calculated at the end of a 1 year period. Accounts created less than 1 year prior to the calculation date are not considered.

A value of 120% indicates that the accounts from 1 year ago now have a 20% higher total contracted MRR than 1 year ago.

For the current calendar month, this metric is calculated on the current date. For previous calendar months, this metric is calculated on the last day of the month.

This metric is reported in the home currency configured in your Zuora tenant.

Calculation:
Current CMRR divided by Year Ago Current MRR

Calculation of Year Ago Current MRR:
Sum of “Booking Metrics: Change in MRR” for all rate plan charges with “Contract Effective Date” earlier than (or equal to) 1 year prior to the calculation date

Subscription Changes (Cancelled Subscriptions)

Number of cancelled subscriptions per calendar month.

For the current calendar month, this metric is calculated on the current date. For previous calendar months, this metric is calculated on the last day of the month.

On the Overview dashboard, a flat line above 0 represents a constant increase in cancelled subscriptions. Data is reported for the last day of each month.

Calculation:
The number of cancelled subscriptions with “Cancelled Date” between the beginning of the calendar month and the calculation date

Subscription Changes (New Subscriptions)

Number of new subscriptions per calendar month.

For the current calendar month, this metric is calculated on the current date. For previous calendar months, this metric is calculated on the last day of the month.

On the Overview dashboard, a flat line above 0 represents a constant increase in new subscriptions. Data is reported for the last day of each month.

Calculation:
The number of new subscriptions with “Subscription Start Date” between the beginning of the calendar month and the calculation date

Total Customers

Number of active accounts, calculated over 1 calendar month. An account is active if it has a subscription with an effective rate plan charge.

For the current calendar month, this metric is calculated for the month to date. For previous calendar months, this metric is calculated for the whole month.

Calculation:
The number of accounts that were active on the calculation date

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