ARR Movements by Parent Customer

Contents

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

Report Description

The ARR Movements by Parent Customer report tracks month-over-month changes in Annual Recurring Revenue (ARR) aggregated at the parent customer level, providing a consolidated view of revenue movements across all associated child customers.

Note: This report aggregates ARR across all child customers under a parent, unlike customer-level reports which show individual customer movements.

Purpose

This report is designed to:

• Analyze ARR movements at the parent customer level
• Provide a high-level view of revenue performance across grouped accounts
• Support executive and financial reporting
• Identify growth, contraction, and churn trends across parent accounts

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

Use Cases

• Finance: Analyze consolidated ARR performance across parent accounts and track net revenue movement trends
• Account Management / Sales: Identify parent accounts with mixed performance (expansion in some child accounts and churn in others)

Example: Monthly ARR movement for a parent customer

Scenario: A parent customer has multiple child customers contributing to ARR. During the period, some accounts expanded while others churned.

Key Insights

• New and expansion added $25,000 in ARR
• Contraction and churn reduced ARR by $25,000
• Net impact: No overall change in ARR

Despite flat ARR, there is significant underlying movement, indicating potential revenue instability.

UI: How to Run & Interact

Refer to How to Run the Reports

Sample Report Output

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

FAQS