Calculations of Key Subscription Metrics

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Calculations of Key Subscription Metrics

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This feature is in Limited Availability. See Requesting Zuora Dashboard if you want to have access to this feature. To be eligible to have access to this feature, Orders must be enabled in your Zuora tenant.

The dashboard available via Analytics > Dashboard displays key subscription metrics as interactive cards.

By default, Zuora displays three cards on the dashboard. If you have a Reporting role that includes the Manage Dashboard permission, you can choose to display ARR-based subscription metrics instead of MRR-based subscription metrics. See Configuring Cards on the Dashboard for more information.

The following table describes how Zuora calculates each subscription metric:

Metric Description

Active Subscribers

The total number of Subscription Owner Accounts with one or more effective rate plan charges at the end of a given time period.

For the current period, the metric is calculated as of yesterday. For previous periods, the metric is calculated on the last day of the period.

Calculation:
The number of accounts with at least one effective rate plan charge.

ARR Changes

Period-on-period increase or decrease in ARR across all accounts. For example, a flat line above 0 represents a constant net increase in ARR.

For the current period, the metric is calculated as of yesterday. For previous periods, the metric is calculated on the last day of the period.

By default, the metric is grouped by business impact.

Calculation:
MRR Changes multiplied by 12.

MRR Changes

Period-on-period increase or decrease in MRR across all accounts. For example, a flat line above 0 represents a constant net increase in MRR.

For the current period, the metric is calculated as of yesterday. For previous periods, the metric is calculated as of the last day of the period.

By default, the metric is grouped by business impact. Calculation for each type of business impact:

  • New Business - Increase in MRR from new subscribers. New subscribers are defined as any Subscription Owner Account that went from 0 total MRR (across all Subscriptions) to >0 MRR (as a result of newly effective booking events like Amendments or Orders) on a given calendar day.
  • Expansion - Increase in MRR from existing subscribers during the calculation period. Existing subscribers are defined as any Subscription Owner Account that went from >0 MRR to a higher MRR value on a given calendar day.
  • Contraction - Decrease in MRR from existing subscribers who do not fully churn during the calculation period. In other words, a Subscription Owner Account that went from >0 MRR to a lower MRR value >0 on a given calendar day.
  • Churn - Decrease in MRR from subscribers who fully churn during the calculation period. In other words, a Subscription Owner Account that went from >0 MRR to 0 MRR on a given calendar day.
  • No Change - Subscribers who had booking events (e.g., renewals or owner transfers) during the calculation period, but that had no overall change in MRR during a given calendar day for a given Subscription Owner Account.
  • Owner Transfer - MRR changes during the calculation period associated with transferring ownership of a subscription from one Account (Invoice Owner and/or Subscription Owner) to another.

Given Business Impact categories reflect the overall net change for a given Subscription Owner Account across a whole calendar day, all booking changes in that day will be categorized with the same impact, regardless of each individual change's impact on MRR (e.g. new products added as part of an order that has the overall effect of contracting the MRR of a given subscription owner will be categorized as contraction).

Changes in MRR as a result of suspending or resuming a subscription count toward either New Business, Expansion, Contraction, Churn, or No Change. For example, if an account has a single subscription, and the subscription is suspended, then resuming the subscription counts toward New Business because the MRR for the Subscription Owner Account increases from 0 to a value >0.

The calculation does not include non-zero price changes on renewals or changes to terms and conditions.

Net ARR

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

For the current period, the metric is calculated as of yesterday. For previous periods, the metric is calculated as of the last day of the period.

Calculation:
Net MRR multiplied by 12.

Net MRR

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

For the current period, the metric is calculated as of yesterday. For previous periods, the metric is calculated as of the last day of the period.

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.

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