ARR Movements By Customer

Contents

• Report Description 
• Report Metadata
• Calculation Summary
• Key Features & Benefits
• Use Case Example
• How to Run and Interact
• Report Output
• FAQs

Report Description

The ARR Movements by Customer report tracks month-over-month changes in Annual Recurring Revenue (ARR) for each customer. It shows movement types such as Opening, New, Expansion, Contraction, Churn, and Ending ARR.

Note: This report shows ARR movements at the individual customer level.

Purpose

This report is designed to:

• Analyze ARR movement at the customer level
• Identify revenue trends
• Track changes in recurring and usage-based revenue

Report Metadata

Calculation Summary

• Uses standard ARR movement logic. 
  • Revenue movements are calculated as the change between periods and categorized as New, Expansion, Contraction, or Churn, based on how revenue increases, decreases, or is lost.
  • For more details, refer to Revenue Movement Framework
• Calculations are performed at the subscription level
• Aggregated to the customer level

Key Features & Benefits

• Consolidated ARR tracking across customer accounts
• Visibility into total revenue contribution by customer
• Simplified executive-level reporting
• Helps identify high-value accounts and revenue concentration
  

Use Case Example 

This example illustrates how ARR movements (Opening, New, Expansion, Contraction, and Churn) are calculated in the ARR Movements by Customer report for subscriptions, including mid-term additions. 

• A parent customer starts a 6-month subscription in January 2026
• Subscription term: January 1, 2026 – June 30, 2026
• ARR value: $12,000
• An additional subscription is added mid-term:
  • Start date: March 1, 2026
  • End date: June 30, 2026
  • ARR value: $6,000

Key Calculation Rules Applied

• ARR movements are based on coverage period, not just contract start or end date.
• A subscription that fully covers a month is considered active for that month.
• Churn or contraction is reflected in the month following the subscription end date.
• All values are aggregated and displayed at the Parent Customer level.

Monthly ARR Movement Breakdown

Key Notes

• Subscriptions covering a full month are treated as active for that month
• Churn and contraction appear in the month following the subscription end date

UI: How to Run & Interact

For more information, refer to How to Run the Reports

Sample Report Output

The report displays aggregated ARR movements at the customer level, showing opening balance, movement components (New, Expansion, Contraction, Churn), and ending ARR for the selected period.

FAQS