MRR/ARR Report

The Ordway MRR/ARR Report gives users insight into the predictable monthly revenue for their business by viewing Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR) for customers with recurring charges. This report does not have conditions based on the Customer Status of Active or Inactive.

MRR and ARR differ from recognized revenue, which can be found in the Revenue Report.

Report Features:

• View MRR by customer for a given time period.
• The Show ARR toggle allows users to easily switch between Monthly Recurring Revenue and Annual Recurring Revenue views.
• Group and filter data to fit the needs of any analysis, such as viewing MRR by Product or Plan.

By default, MRR values are displayed based on Contract Effective Date, which is also referred to as Booked MRR. There are also options to view MRR based on Service Start Date and Billing Start Date of the contract.

The MRR report looks at active subscriptions for a given period, then adds together MRR from all subscription charges that have a recurring charge type.

Note: Ordway only includes subscriptions with MRR greater than 0.

Run MRR/ARR Report

Navigate to Menu > Reports > MRR/ARR Report. 

The default view displays Booked MRR for all customers in the current calendar year, aggregated by month.

Filter Report

Use the available Filters to customize the report. 

Click the Show ARR toggle to view ARR data. 

Click the Include Draft Subscriptions toggle to include drafts. 

Click Run to run the report with selected criteria. 

Growth Metrics

The Growth Metrics options in the Group By drop-down allows users to see how key metrics are trending over time, including MRR expansion, contraction, churn and customer counts. These metrics can be further refined by first grouping by another field of interest, such as Customer or Product.

MRR/ARR Movements

Selecting MRR Movements in the Group By drop-down will display a summary of changes to MRR within each period, as well as changes relative to previous periods. The Aggregate By field in the Filters section determines the period length (Month, Quarter or Year), and it is set to Month by default.

The fields within MRR Movements are defined as follows:

• Starting MRR - Monthly Recurring Revenue (MRR) as of the start of a given period.
• New MRR - MRR for new customers that have activated subscriptions in the given period. New customers in this case are defined as those which did not have any active subscriptions prior to that period.
• Expansion - MRR increases for existing customers. This might happen if a customer signs up for a new subscription, or if an existing subscription is modified in a way that increases MRR (e.g. adding charges, increasing quantity or price, etc.).
• Contraction - MRR decreases for existing customers. This might happen if an existing subscription is modified in a way that decreases MRR (e.g. removing charges, decreasing quantity or price, etc.), or if a subscription is cancelled or expires while the customer has at least one remaining active subscription.
• Churn - Reductions in MRR for churned customers. We calculate this based on subscriptions that are cancelled or expire and the customer no longer has any active subscriptions beyond that period.
• Ending MRR - MRR at the end of a given period. This is calculated as Starting MRR + New MRR + Expansion - Contraction - Churn.
• Growth Rate - Percentage increase or decrease in Ending MRR relative to the Ending MRR in the previous period.
• Gross Retention Rate – Last 12 months: This is meant to measure how well recurring revenue is retained from existing customers. It includes cumulative Churn and Contraction during the prior 12 months, but doesn’t include any New MRR or Expansion. As a result, it is on a scale of 0-100%. The calculation we use is: (Starting MRR from 12 months prior - Churn - Contraction ) / (Starting MRR from 12 months prior) * 100.
• Net Retention Rate – Last 12 months: This is meant to measure the overall percentage of revenue retained from existing customers during the prior 12 months, including Expansion. This still does not include New MRR, but since Expansion is included it can be greater than 100%. The calculation we use is: (Starting MRR from 12 months prior - Churn - Contraction + Expansion) / (Starting MRR from 12 months prior ) * 100.

These same metrics are available for Annual Recurring Revenue (ARR) as well. To enable this, simply select the Show ARR toggle in the Filters section and the report will update automatically. In this report we define ARR simply as MRR multiplied by 12.

These metrics can also be adjusted to account for any discounts that are in place for a given subscription. To do so, simply turn on the Discounted MRR toggle (or Discounted ARR if the Show ARR toggle is enabled) and all values in the report will be updated to include discounts.

While these MRR or ARR Movements can be very useful at an overall company level, it may also be helpful to view these more granularly. To do this, simply select the field of interest in the first Group By drop-down, and then select MRR Movements (or Discounted ARR if the Show ARR toggle is enabled) in the second Group By drop-down. For example, selecting Group By Product Name and Then Group By ARR Movements will produce the results below.