Advanced Subscription Momentum Report Configuration

If you have Multi-currency enabled in your Maxio Core account, you have the option to display your report results in your home or local currency. If you choose to report in your home currency, you can track metrics across multiple currencies with meaningful results, as each non-home Transaction is shown in its equivalent home currency amount using the Transaction FX rates.

If you choose to report in local currency, you will need to be mindful of the effect that FX rate differences can make on your analytics when reporting across multiple different currencies. While the register's currency is listed for reference in the report, you may want to consider only selecting registers of the same currency in any given report if you choose to report in local amounts.

You also have the option to select a reporting currency and convert all of the currencies to it in the report. When you select this option, you will also need to choose the currency you would like to report in as well as the conversion strategy.

You have two options for the conversion strategy:

• Average Rate for Period: Converts the currencies each month and provides you with the amounts gained or lost depending on the FX rate.
  
  
  
  
• Constant Currency: Allows you to select a specific date for the conversion if you'd rather not see the impact of FX gained/lost over periods of time. This option is helpful if you are just wanting to see the status of your sales-negotiated contracts at a given date.

You also have the option to set a constant currency date when the "Convert to Reporting Currency" is selected. This will make sure the converted rate stays the same as the value on a particular day. Select a date for the Constant Currency Date to apply this as well as the checkbox "Use Modified Rate". The rate will be displayed in the "Modified FX Rate" column of the FX Rate Schedule report. 

Select one or more registers from which Transactions are to be included. If you have only one register, then this option is not applicable. If you have multiple registers and no register is selected, all registers are included.

Indicate if you would like to include a column for row totals in the report and whether to not to display two decimal points for the values in the Momentum section of the report.

Determine the granularity of the momentum calculations (New, Lost, Expansion, Contraction). This option is often set equal to the periodicity but can be set to a smaller value.

For example, suppose that the periodicity is set to "Quarterly", and you had a new Customer in January for $100 MRR, who purchased additional items in February for $50. If your Calculation Period was set to “Monthly”, we would show $100 New and $50 Expansion in Q1. With a "Quarterly" Calculation Period, all $150 would appear as New for Q1.

When selecting the Calculation Period, keep in mind the following:

• If you want to see only the net change for each Customer within each reporting period (at most one of these calculations: New, Lost, Expansion, Contraction), set the Calculation Period to be the same as the Periodicity.
• If you set the Calculation Period to a value smaller than the Periodicity, then the report may show values for more than one calculation (New, Lost, Expansion, Contraction) for a given Customer within the same reporting period.
• If you want to compare two reports with different Periodicities, be sure to use the same Calculation Period for both. For example, when comparing a Monthly report to a Quarterly report, set the Calculation Period to Monthly in both reports.

Measures Opening, New, Expansion, Contraction, Lost, and Ending values for Transactions.

Click here for more information about the Momentum section.

Momentum Moving Average

Momentum Performance

Provides options to display actual target values and percent of target achievement from the Momentum (#1) section against a selected Target you create in Maxio Core, but separately from the report. Targets are created and maintained outside of the report definition so they can be used in multiple reports.

Committed Roll Forward

Analyzes Transaction value by Order Date for when the Order Date is in a month preceding the Transaction Start Date, generating Net and Gross Backlog numbers for new and renewal TXs.

Committed calculations use the Transactions Order, Start and End Dates. Like all other calculations in the report, data is Interpreted based on analysis of the timing of the Transaction dates, not any specific tags associated with the Transactions themselves.

When a Transaction Order Date is in the same month as the Transaction Start Date, the Transaction will be both added as both "Backlog" and also "Converted from Backlog" in the same month.

If a Transaction has no Order Date, the Transaction Start Date is used as the Order Date.

Because the Subscription Momentum report is an interpretive report, meaning it analyzes the TX data and looks at the changes over periods of time to determine net effects vs using TX tags such as the Class, overlapping Transactions for the selected Group By (Customer or Customer/Contract) are likely to be reported as New Backlog. To be considered Renewal, a TX must start in a period where another TX ends.

Committed Momentum

Please note that this section must first be enabled by the Maxio Support team before you can use it.

Measures Opening, New, Expansion, Contraction, Lost, and Ending values for Transactions using the earliest of the TX Order Date or TX Start Date, whichever is earlier.

Customer Count

Measures Opening, New, Expansion, Contraction, Lost, and Ending period Customer counts by analyzing Transactions.

The Customer Count for each row is the count of Customers that have a value in the equivalent Momentum row.

To view the Customers, select the option Include Groups Collapsed or Show Groups Expanded.

Note that the independent nature of the Momentum row calculations can result in situations where the Opening + New  - Lost IS NOT EQUAL to End. This typically occurs when there are gaps in Transactions spanning more than a month.

Committed Customer Count

Customer Count Moving Average

Customer Count Performance

Transaction Renewals

Measures Transaction renewal and cancellation values.

The following applies to all the rows in this Transaction Renewal section.

Because the Advanced Subscription Momentum report is an interpretive report, meaning it analyzes the TX data and looks at the changes over periods of time to determine net affects vs using TX tags such as the Class, these calculations require that there are no overlapping Transactions for the selected Group By (Customer or Customer/Contract) in order to determine what is a renewal and what is being renewed. That means that all the Transactions being renewed must end in the period, and the renewal Transactions, if any, must all start in the period.

Example:

A customer has the following Transactions

TX 1 - 1/1/22 to 12/31/22

TX 2 - 2/1/22 to 6/30/22

TX 3 - 7/1/22 to 10/31/22

TX2 and TX3 are excluded from all renewal calculations. They are included in other calculations in the Subscription Momentum Report, but are ignored in the Transaction and Customer Renewals sections.

Click here for more information about the Transaction Renewals section.

Customer Renewals

Measures Customer renewal and cancellation counts.

The Customer Count report counts Customers using data from the Transaction Renewals section. To view the names of the Customers include Groups and view the results in the Transaction Renewals section.

Click here for more information about the Customer Renewals section.

Renewals Performance

Additional Metrics

Measures Transaction churn and renewal rates, including moving averages, as well as Averages for the Momentum (#1) section.

Click here for more information about the Additional Metrics section.

Gross Revenue Retention

Measures the amount of recurring revenue over one year. It is calculated by using these parameters:

Gross Revenue Retention = (Opening MRR from 1 year ago + Lost MRR during the past year + Contraction MRR during the past year) / Opening MRR from 1 year ago

Check out more information on Gross Revenue Retention on our Saaspedia Page.

Customer Metrics

Select Trailing 12 months if your business is primarily an annual or longer-term subscription business. This calculation uses the Total of Customers Lost this month and the previous 11 months divided by the Customer opening from 11 months ago.

Select Monthly if your business is a pure or mostly monthly subscription business.

With a sufficient number of customer records (50 or more), the two calculation methods return values that are typically materially the same. The same underlying principle of statistics (law of large numbers) that makes this true also results in materially accurate results when your subscription periods are always longer than a year. Naturally, the data set has to be large enough for the law of large numbers to hold, which is generally going to be the case for a multi-million dollar revenue subscription company. Early stage businesses should experiment with the report settings to determine the optimal settings. Use of moving averages can be helpful in removing spikes.

Customer Lifetime Value

Performs various lifetime value calculations to provide values, moving average values, and CLV to CAC ratios.

Click here for more information about the Customer Lifetime Value section.

Net Dollar Retention

Calculates the change in existing Customers' total MRR/ARR for the previous one-year period. It takes last year's ending MRR for only existing Customers and compares it to the data for exactly one year later. It disregards new Customers, who have started after the given period start date and do not have at least one year's worth of data.

The Net Dollar Retention section of the report displays the following:

1. End of Period
   This is the same as the "End of Period" in the Momentum section. It is the overall amount (usually MRR or ARR) for all Transactions having date ranges that include the "End of Period" date.
2. YoY New This is the part of the "End of Period" that represents Customers who were added since the previous one-year period. Basically, this is the new revenue that's been added in the last year.
3. YoY Growth This is the revenue growth of the previous year, which is the percentage increase of the "End of Period" during the previous one-year period. This is calculated as ("End of Period" / ("End of Period" from one year prior)) - 1.
4. Net Dollar Retention The revenue percentage you've retained during the previous one-year period.
   
   Let's say, for example, the Net Dollar Retention for June 2019 was 113%. This means that of the Customers you had in June 2018, you may have retained 100% of your prior year customers, but even if you didn't, you added enough new or expansion revenue to make up the difference. As in, if you had 100 customers at June 2018 with $1,000 each of revenue, lost 10 of those initial customers, but added 23 new customers (also with $1,000 each of revenue), your net dollar retention is $113,000, or 113%.
   
   If you're interested in gross revenue retention, or using the example above, seeing the retention of the same 100 customers you had in June 2018, see "Gross Revenue Retention" under the Additional Metrics section of the report.

Roll up Customers by Parent 

Data from child Customers (those with a parent) is not shown directly on the report, but instead is rolled into the parent Customer's data. This is most noticeable in calculations of "New" and "Lost".
For example, the addition of a child Customer to an existing parent results in an "Expansion" of the parent Customer rather than a "New" Customer.

Exclude Customers Who Net to Zero

This setting applies to the Momentum and Customer count sections of the report.

Often there are situations where the economic value of a customer is zero (free trials, early terminations). This setting allows you to adjust when a customer is considered "new" or "lost." Instead of using the start and end date of the transactions, you use the earliest and latest dates of when a customer's transactions do not equal zero.

For example, consider a customer that had a 3-month free trial. With the setting enabled, the customer would not be included in the momentum or customer count sections until the 4th month, when their transactions were not equal to 0. With the setting disabled, the customer would be considered a new customer in month 1 with an expansion in ARR/MRR in month 4.

The same would apply to a customer who ended their contract early and a negative/offsetting transaction was used to account for the early termination. With the setting enabled, the customer would be considered lost at the time of termination. With the setting disabled, the customer would be considered a contraction to 0, and then after the latest transaction end date, lost.

Include Intra-Period Fluctuations

This setting helps display the impact of Customers that (a) are new and lost within the same calculation period, or (b) expand and contract within the same calculation period. With the option enabled, a Customer's total MRR/ARR will be computed within each calculation period in addition to being computed at the end dates.

With this option disabled, the default setting, a Customer's total MRR/ARR is only computed at the end date of each calculation period. Customers that are new and lost within the same calculation period are omitted from the report, and expansions and contractions of a Customer within the same calculation period are not shown.

Carry Forward Expired

Select to expand the categorization of Opening and End of Period to distinguish Transactions that are Active (really exist in the period) vs. those that have simply Expired (neither Renewed nor Canceled). When on, Carry forward assumes the full value of any Expired Transaction is included in the End of Period calculation that is used in many of the other calculations within the report, including CLV calculations. Transactions that have been Canceled are NOT carried forward.

Upsell & Cross-sell by Product Family

Calculates the expansion and contraction metrics by "Product Family," enabling you to track ARR changes within each family and accurately identify cross-sells, upsells, downsells, and lost product families.

The generated report will display sections for "Cross-sell," "Upsell," "Downsell," and "Lost Product Family" in the corresponding Expansion and Contraction drill-downs.

• Summary Rows Only: Displays the report results with no details, just the final calculations. This is the fastest setting, and is recommended if you have a large data set.
• Include Detail Rows: Displays the report results with additional data segmentation. You can specify up to 10 fields to include in the report. You can also define where subtotals will appear.