Calculation of future MRR and future movements
Discover how Fincome anticipates the evolution of your MRR through analysis of your data. Learn to identify future movements to proactively manage your business.
1. What is future MRR?
MRR (Monthly Recurring Revenue) represents the amount of monthly recurring revenue generated by your active subscriptions at a given moment. Future MRR is a projection of that MRR over the coming months, calculated from active subscriptions and future subscriptions already recorded. It allows you to visualize the trajectory of your recurring revenue while taking into account changes already scheduled in your billing system (e.g., subscriptions with delayed start, upcoming cancellations).
In Fincome, future MRR is broken down into two categories:
Secured MRR: portion of future MRR considered guaranteed, including invoices in progress as well as future subscriptions with contractual commitment
Unsecured MRR (or non-committed MRR): a more uncertain portion, grouping tacitly renewed subscriptions without commitment (if they are not cancelled, i.e., no planned churn) as well as future subscriptions without contractual commitment.
As time passes, the future MRR related to a future subscription “realizes”: as soon as an invoice is generated for that subscription, its amount switches from future MRR to the actual MRR of the corresponding month. Conversely, if no invoice is issued after the start date of that future subscription, it stops being counted in future MRR (it is not accounted for without an actual invoice).
2. The difference between future MRR and CMRR
CMRR stands for Committed Monthly Recurring Revenue, often translated as Committed Monthly Recurring Revenue. It is a predictive indicator closely related to future MRR, but with one key difference: the way it is modeled. CMRR gives a committed view of your future monthly recurring revenue as of today: it includes everything that is contractually planned and certain to occur, which always places it a step ahead of MRR. In summary, CMRR today reflects the guaranteed monthly value of all current and future subscriptions, while future MRR offers a modeling of that value at the date of their actual start.
3. Where to view future MRR in Fincome?
Fincome allows you to visualize future MRR directly in your revenue analysis interface. To view it, follow these steps:
1. Section Revenue/MRR : Go to the Analytics > Revenue > MRR section of Fincome. When you press the small arrow under the timeline, the main chart displays your MRR over time, and future MRR is shown there as a projection (dotted curve extending the actual curve).
2. Projection period: Select the desired time horizon for the MRR projection. For example, you can choose to display the next 3, 6, 12 months, or adjust the duration to your needs. Fincome will then adjust the chart to show future MRR up to the chosen horizon.
4. What are future MRR movements?
In Fincome, future MRR movements are the different upcoming changes that will impact your MRR. They are in fact all events already planned on your subscriptions: a scheduled cancellation, a delayed subscription start. The “Growth > MRR – ARR Movements” section is dedicated to analyzing these changes: by clicking the small arrow under the timeline, it allows you to visualize, as soon as they are known, the impact of each movement on your future monthly revenue.
Specifically, on the MRR Movementspage, you can view at a glance:
Upcoming attritions (future churn): these are the decreases in MRR related to planned subscription cancellations. Each subscription for which an end of contract is recorded in the future appears here, with the amount of MRR that will be lost and the date on which the churn will occur (depending on the chosen churn recognition option ).
Upcoming contractions (downsell) : these are reductions in MRR already planned without full customer cancellation. For example, a customer who switches to a lower plan at their next renewal, or the end of a promotional discount that will reduce the subscription amount.
Upcoming expansions (upsells) : conversely to contractions, these are planned increases in MRR on existing subscriptions. For example, a customer has agreed to move to a higher plan in two months, or an add-on will be added to their subscription at the next billing. These upcoming upsells appear in future movements with the expected additional MRR and the effective date. They contribute positively to the future MRR projection.
New future subscriptions : this category concerns new customers or contracts whose start is set for a later date. If you have recorded in your billing system a subscription with a future start date (for example a signed contract that begins next month), Fincome will include it as a future movement of new MRR.
Last updated