Chart: Net MRR Movements

If you're new to ChartMogul, get to know how charts work. Also, familiarize yourself with MRR movements in ChartMogul.

Net MRR Movements reports the cumulative (net) effect of all changes a customer makes to their subscriptions.

To analyze the MRR changes per subscription, see MRR Movements.

TL;DR

Net MRR Movements groups a customer’s MRR movements so they are categorized for one MRR movement type in each reporting interval. It gives you insight into a customer’s overall MRR, instead of the MRR changes to each subscription.

MRR Movements vs. Net MRR Movements

In order to use the Net MRR Movements chart effectively, it’s important to understand the difference between MRR movements and Net MRR movements.

ChartMogul uses MRR movements to track and classify changes to an individual subscription’s monthly recurring revenue (MRR). The value of each movement is the net change (increase or decrease) in the subscription’s MRR which ChartMogul categorizes as either New Business, Expansion, Contraction, Churn, or Reactivation.

Net MRR movements, on the other hand, focus on the cumulative (or net) impact of all subscription changes made by an individual customer in a specific reporting interval. ChartMogul combines all of the customer’s MRR movements into a single Net MRR movement whose value is the combined (net) change in MRR across all of the customer’s subscriptions. The resulting Net MRR movement is categorized as either New Business, Expansion, Contraction, Churn, Reactivation, or Subscribed & Churned. See Chart Data.

  MRR movements Net MRR movements
Description Change to a subscription’s MRR Changes to a customer’s MRR
Calculation The net change (increase or decrease) in a subscription’s MRR. The cumulative (net) change in a customer’s MRR in a given report interval.
Multiple subscription changes for a given customer in a given report interval… … are each reported as an individual MRR movement. … are reported as a single Net MRR movement.

Chart Notes

  • Net MRR Movements has an additional MRR movement type: Subscribed & Churned. This is for customers who both start and cancel a subscription within a given report interval.
  • ChartMogul calculates Net MRR movements every six hours. Therefore, this chart may be delayed by up to six hours.

Calculation

ChartMogul calculates the value of each Net MRR movement type as follows:

Net MRR Movements is configured by selecting a reporting period and measurement interval to create a series of report intervals. Then, ChartMogul combines all MRR movements for each customer within each interval. The net effect is calculated as one movement type in each interval using the following method:

  • Customers who have a New Business or Reactivation movement are reported as such, unless they cancel their last subscription (i.e., churn) within the same interval, in which case, they’re reported as Subscribed & Churned.
  • Customers who cancel their last subscription are reported as Churn (as long as they didn’t start or reactivate the subscription in the same report interval).
  • Existing customers are classified as either Expansion or Contraction, depending on whether the net change in MRR is either positive or negative.

Each customer has one Net MRR movement for each report interval in which at least one of their subscriptions had a change.

For example, a customer has the following MRR movements:

  • New Business on December 1, 2021
  • Expansion on January 3, 2022
  • Expansion on January 17, 2022
  • Contraction on January 28, 2022
  • Expansion on February 7, 2022
  • Contraction on February 22, 2022
  • Expansion on March 2, 2022
  • Expansion on March 16, 2022

Using MRR Movements with the reporting period of December 1, 2021 to March 31, 2022, each movement is reported in each interval.

Using Net MRR Movements with the same reporting period, the customer’s movements are grouped so they are reported for one movement in each interval. For example, the customer had net expansion in January 2022, so they are reported for one Expansion movement.

Chart Data

The Chart Data table works differently than other charts. It provides the following breakdown:

New Business Customers who start their first subscription and do not cancel (i.e., churn) within a given report interval, regardless of whether they also experience a net increase (or decrease) in subscription MRR (e.g., as a result of a subscription upgrade) during the same report interval.

If the customer cancels all of, or their last remaining subscription (i.e., churns) within the report interval, they are instead classified as Subscribed & Churned.

Expansion Existing customers who experience a net increase in subscription MRR in a given report interval.
Contraction Existing customers who experience a net decrease in subscription MRR in a given report interval.
Churn Customers who canceled all of, or their last remaining, subscription in a given report interval.

Should the customer have a New Business or Reactivation movement within the same report interval, they are instead classified as Subscribed & Churned.

Reactivation Formerly paying customers (who had previously churned) who moved back on to a paid plan and did not churn within the report interval, regardless of whether they also experience a net increase (or decrease) in subscription MRR (e.g., as a result of a subscription upgrade) during the same report interval.

If the customer cancels all of, or their last remaining subscription (i.e., churns) within the report interval, they are instead classified as Subscribed & Churned.

Subscribed & Churned Customers who both started (or reactivated) and canceled a subscription in the same report interval.
Net MRR The sum of all Net MRR movements in the report interval.
Change The change in Net MRR compared to the previous report interval.
Total MRR The sum of MRR for all Active and Past due subscriptions.

Next Steps

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