MRR / ARR by Contract Type
The MRR / ARR by Contract Type report shows recurring revenue grouped by contract category and displayed by period. It allows you to view how each contract type contributes to Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR) over time.
The report compares recurring revenue between periods and classifies changes by contract type.
What This Report Shows
This report displays recurring revenue segmented by contract type and tracks how that revenue changes from one period to the next.
The table includes the following metrics:
Monthly Recurring Revenue (MRR)
Annual Recurring Revenue (ARR)
Revenue is organized by contract category so you can review how each type contributes to total recurring revenue in each reporting period.
Revenue Classification
Rillet compares each customer’s recurring revenue at the end of the current period with the previous period and classifies the change into the categories below.
The report includes the following revenue movement types:
New Sales Revenue generated from customers who begin generating recurring revenue for the first time.
Reactivations Revenue from customers who previously had no recurring revenue and became active again.
Churn Revenue lost from customers who no longer generate recurring revenue.
Expansion Additional recurring revenue from existing customers who increased their contract value.
Contraction Reduced recurring revenue from existing customers who downgraded or reduced their contract value.
Usage Impact Changes in recurring revenue driven by usage-based or metered billing products. Usage Impact is calculated as the current month usage overage minus the prior month usage overage.
FX Impact Changes in recurring revenue caused by currency exchange rate fluctuations for multi-currency contracts.
How the Report Works
Rillet calculates MRR and ARR using contract line items, invoices, credit memos, and overrides that are marked as Count to MRR/ARR.
Each contract line item contributes to recurring revenue based on the following attributes:
Product Type The product must be configured to count toward MRR or ARR.
Product Dates The start and end dates defined on the contract or invoice line item determine when the revenue is included.
Product Amount The monetary value of the recurring line item determines the revenue contribution.
The system determines revenue movements by comparing each customer’s recurring revenue at the end of the current period with the prior period and classifying the change by contract type.
See Also
Learn more about recurring revenue and related metrics:
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