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FAQ

    # Billing

    # Monthly Recurring Revenue (MRR)

    Expected monthly revenue from your subscriptions. Calculated based on the recurring price of your active and paid services, domains and addons. It is calculated based on the paid invoices in your system so it shows a real MRR value. It is not based on the expected MRR from the active services. A service is no longer counted for MRR when it churned, which is determined by our system based on the "Exclude Active Status Services" and "Grace Period" settings in the Application settings. Read more about it here. Please also note that custom made invoices do NOT apply to MRR because the invoice items in WHMCS are not linked to the corresponding service therefore are not considered to be a recurring revenue.

    Formula:

    [MRR = Sum of all monthly fees your customers pay]
    • Example 1:
      • Let's say that you have three customers:
        • Customer A: Paid first time $10 for a monthly service on 7th January
        • Customer B: Paid first time $120 for a yearly service on 14th January
        • Customer C: Paid first time $3 for a one time service on 21th January
      • The MRR will show:
        • $0 for 1st - 6th January
        • $10 for 7th - 13th January
        • $20 for 14th - 31st January
    • Example 2:
      • Let's say that you have three customers:
        • Customer A: Pays $10 for a monthly service (regularly each month)
        • Customer B: Paid $120 for a yearly service on with due date on 1st January and he paid only last year.
      • In Settings → My Applications → Edit you have the default 14 day grace period
      • The MRR will show:
        • $20 for 1st - 6th January
        • $10 for 15th - 31st January (because Customer B churned his service 14 days after the due date)

    # Annual Recurring Revenue (ARR)

    • Annual Revenue Rate (ARR) is a report showing the data like the Monthly Recurring Revenue (MRR) but for a full year instead.
      Formula:
    [ARR = MRR x 12]

    # Average Revenue Per User (ARPU)

    An expected amount of average revenue from your active customers. Calculated on based on the MRR and amount of Active Customers.
    Formula:

    [ARPU = MRR / Active Customers]
    • Example :
      • If you have $100 MRR and 10 Active Customers (not everyone must pay) then your ARPU is $10.

    # Average Revenue Per Paying User (ARPPU)

    This report is almost the same as Average Revenue Per User (ARPU) but the calculation is based only on the paid customers so it's based on MRR and Active Paying Customers
    Formula:

    [ARPPU = MRR / Active Paying Customers]
    • Example :
      • If you have $100 MRR and 10 Active Customers but only 5 Active Paid Customers then your ARPPU is $20.

    # Customer Lifetime Value (LTV)

    An average estimated value of a customer through their whole life span formed on the existing customer base. This is an average calculation based on ARPU and Churn Rate. This metric may not be very "realistic" for a small sample of data (less customers than 100 is going to have a very variable Churn Rate).
    Formula:

    [LTV = ARPU (Average Revenue Per User) / Churn Rate]
    • Example:
      • If your ARPU is $10 (as in the examples above)
      • You have 10 active clients now
      • You had 5 clients leaving in the last 30 days
      • This means that your Churn Rate is 50% (5 clients lost / 10 clients in total now)
      • In such case your LTV is $20 ($10/0.5). In other words your customer leaves you $20 in average during their lifespan at your company.

    # Paying Customer Lifetime Value (PLTV)

    This report is almost the same as Customer Lifetime Value (LTV) but the calculation is based only on the paid customers so it's based on ARPPU and Churn Rate.
    Formula:

    [PLTV = ARPPU (Average Revenue Per Paying User) / Churn Rate]

    # Revenue

    Total revenue calculated on the basis of the paid invoices for all types of services in the system, including custom invoices.

    Accrued Revenue - you can enable this option in Settings → My Applications → Edit (application). If enabled, the system will calculate the Revenue based on the invoices marked as paid, regardless of the transactions. By default this option is disabled.

    # Net Revenue

    Net Revenue based on paid invoices in your system excluding gateway fees and taxes.