Outseta provides billing reports for common subscription metrics. This article details how each of these metrics is calculated. Outseta's billing stages are the basis of many of these reports—this article provides a definition of each billing stage.
Subscribers
The subscribers report includes (for any given time period) any account that:
- Is not in a Trialing or Trial Expired billing stage, and...
- Has an active subscription that started before the period's start date, and...
- Has a subscription end date or renewal date after the time period.
It's important to note that this means Cancelling accounts can be included in this report because they still have an active subscription during the time period.
Monthly Recurring Revenue (MRR)
The MRR report looks at the revenue associated with your subscribers for a given period and normalizes this value for different payment terms. For example:
- A plan that's $50/month counts as $50 in MRR.
- A plan that's $150/quarter counts as $50 in MRR. The cost of the quarterly plan is divided by 3.
- A plan that's $600/year counts as $50 in MRR. The cost of the annual plan is divided by 12.
Discounts are automatically factored into the MRR report—add-on subscriptions are not included.
Gross Revenue
The gross revenue report shows both Invoiced Revenue and Collected Revenue.
- Invoiced Revenue—The total of all invoices created in a given period of time.
- Collected Revenue—The actual amount of money collected in the time period.
There are two common sources of the discrepancy between Invoiced Revenue and Collected Revenue—discounts and failed payments.
For example, say you have a plan that's $100 per month and you offer a customer a $25 discount. The invoiced revenue in this example is $100 and the collected revenue is $75. The $25 discount is applied to the $100 invoice.
Churned Accounts
The churned accounts report looks at the total number of accounts that reach an Expired billing stage during a specific time period and divides that number by the total number of subscribers at the end of that time period.
For example, if 10 accounts reach an Expired billing stage in May and you end the month with 100 subscribers, your churned account reports will reflect 10 / 100 = 10%.
Churned Revenue
The churned revenue report looks at the the MRR associated with any account that reaches an Expired billing stage during a specific time period and divides that number by the total MRR at the end of that time period.
For example, if 10 accounts reach an Expired billing stage in May and each has a value of $100 in MRR, that's $1000 in churned revenue for the period. If your total MRR at the end of the May was $10,000, then your churned revenue report will reflect $1,000 / $10,000 = 10%.
Trial Conversions
The trial conversions report looks at the total number of trials started in a given time period and reports this as the number of trials.
The number of trial conversions reported for a given period includes all of the trials that were started in the period that are not currently in a Trialing or Trial Expired billing stage.
If any of the other billing stages were reached—including canceling, expired, or past due—then a conversion occurred at some point during the time period.
For example, if 10 trials were started in May and 2 trial conversions were reported the trial conversion rate would be 2 / 10 = 20%.
If you have further questions on how Outseta's billing reports are calculated, please reach out to [email protected].