How account MRR is calculated in Natero?

For each account we process the subscription data to create an MRR history for that account. The history is on a per subscription, per account basis. For each account and subscription, we calculate the MRR at the start of the month (end of last month carried forward), along with the MRR at the end of the month, and the relative change between end and start for each subscription of each account. Most of the charts on the financial dashboard use the MRR calculated at the start of the month.

Definition of MRR Metrics

The account metrics of Lost MRR, New MRR, Contraction MRR, and Expansion MRR have been defined as follows (start and end refer to MRR at month start and end respectively): 

  • Lost MRR: start MRR > 0 and end MRR = 0
  • Contraction MRR: start MRR > 0 and end MRR < start MRR and end MRR != 0
  • New MRR: start MRR = 0 and end MRR > 0
  • Expansion MRR: start MRR > 0 and end MRR > start MRR

Based on the definition, Lost MRR in a given month can come from both accounts that churned in that month and accounts that did not churn. Likewise, New MRR in a given month can come from both new accounts that joined in that month and accounts that joined earlier. 

Please not that these metrics were defined on a per account basis, that's said, we aggregate the subscription data to the account level.

Delay of MRR Reporting

Right now we delay processing into Lost MRR or Contraction MRR for 3 days from the start of the day of the event. This includes both contractions and non-renewals. So if an account's subscription ends today but renews in the next 3 days, Lost MRR of that account will not be reported. 

Please refer to this article for more details on Financial Dashboard.  

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