For high-growth SaaS companies, tracking Annual Recurring Revenue (ARR) isn't just about monitoring a single number—it's about understanding the complex dynamics that drive business growth. Subskribe offers a sophisticated ARR tracking system that helps companies master these complex metrics with ease.
The Five Essential ARR Metrics in Subskribe
Subskribe's platform provides comprehensive support for five critical ARR metrics at both the Order and Subscription levels, giving you a complete view of your recurring revenue:
Entry ARR is automatically calculated by Subskribe as the total ARR of your Order or Subscription on day one. This baseline metric helps you track the initial value of each customer relationship and serves as the foundation for measuring future growth.
Exit ARR is tracked as the total ARR value on the final day of the Order or Subscription period. Subskribe maintains this metric to help you understand the ultimate revenue outcome of each customer engagement.
Average ARR is computed across the entire duration of the service period, providing a normalized view of revenue that accounts for various changes and adjustments throughout the subscription lifecycle.
Current ARR (Now) gives you a real-time snapshot of your Order or Subscription's ARR value as of the current date, enabling immediate insights into your revenue position.
Delta ARR is automatically calculated by Subskribe as the difference between the Entry ARR of the current Order/Subscription and the Exit ARR of the related order, providing clear visibility into revenue growth or contraction.
Breaking Down ARR Movement Categories in Subskribe
New Revenue Streams
Subskribe's Looker reporting provides detailed categorization of new revenue, including:
New ARR is specifically tracked for first-time bookings with an account, giving you clear visibility into true new logo acquisition. The system automatically categorizes these transactions when a New Order Type is executed.
Reactivation ARR is distinctly tracked when there's a lapse between subscriptions. Subskribe automatically identifies scenarios where a renewal lapses and subsequent reactivation occurs, ensuring accurate classification of returning customer revenue.
Expansion Opportunities
Subskribe offers granular tracking of various expansion types:
Add-on ARR is precisely tracked when net-new plans or charges are added to the first subscription for an account. The system distinguishes between true add-ons and modifications to existing products.
Renewal Add-on ARR is separately categorized for new plans or charges added to renewal subscriptions, providing clear visibility into expansion patterns across customer lifecycles.
Upsell ARR is automatically tracked in two scenarios:
- During ramp cycles where quantities increase over time
- When amendments increase quantities during a subscription term
Markup ARR is specifically monitored for price increases during ramp cycles, with Subskribe automatically calculating and categorizing revenue changes from pricing adjustments.
Revenue Risk Tracking
Subskribe provides comprehensive tracking of revenue risk indicators:
Downsell ARR is automatically tracked when:
- Quantities decrease during a ramp cycle
- Amendments reduce quantities
- Changes occur in renewal subscriptions (tracked as Renewal Downsell ARR)
Markdown ARR is monitored for price decreases during ramp cycles, with separate categories for initial subscriptions and renewals (Renewal Markdown ARR).
Churn Monitoring
Subskribe's system includes sophisticated churn tracking:
Termination ARR is automatically recorded when cancellation orders are processed, with the effective date clearly tracked.
Expiration ARR is systematically recorded for all order lines at their end dates, with intelligent handling of renewal scenarios:
- Positive expiration recorded at the end of term
- Negative expiration automatically recorded to offset when lines renew
Advanced Forecasting and Planning
Subskribe provides robust forecasting capabilities through:
Pending Renewal ARR tracking, which:
- Forecasts 100% of order line values
- Enables assumption-based renewal planning
- Supports forward-looking revenue projections
Comprehensive Reporting Categories
Subskribe's Looker reporting summarizes ARR movements into clear categories:
- Opening Balance ARR: Carries forward previous month's ARR balance
- New ARR: Combines new logo acquisition and reactivation
- Expansion ARR: Aggregates all growth including add-ons, upsells, and markups
- Contraction ARR: Consolidates all reductions including debooks, downsells, and markdowns
- Churn ARR: Combines termination and expiration metrics
Conclusion
Subskribe's sophisticated ARR tracking capabilities provide the foundation for accurate, scalable revenue management. By automatically categorizing and tracking these various revenue movements, Subskribe enables SaaS companies to:
- Maintain precise revenue recognition
- Track growth and contraction patterns
- Forecast future revenue with confidence
- Make data-driven decisions about customer relationships
The platform's comprehensive approach to ARR tracking ensures that fast-growing SaaS companies can focus on driving growth while maintaining accurate, detailed visibility into their revenue patterns and trajectories.
Also, check out Mastering SaaS Metrics: A Guide to Measuring and Optimizing Revenue Growth.
