Future MRR calculation and future movements
Discover how Fincome anticipates the evolution of your MRR by analyzing 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 time T. Future MRR, on the other hand, is a projection of that MRR over upcoming months, calculated from active subscriptions and future subscriptions already recorded. It allows you to visualize the trajectory of your recurring revenue 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 outstanding invoices as well as future subscriptions with contractual commitment
Unsecured MRR (or MRR without commitment): a more uncertain portion, grouping subscriptions renewed tacitly without commitment (if they are not canceled, 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 moves 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 taken into account in future MRR (it is not counted 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 a key difference: the way it is modeled. CMRR provides 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 puts it a step ahead of MRR. In summary, CMRR today reflects the guaranteed monthly value of all current and future subscriptions, whereas 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 view future MRR directly in your revenue analysis interface. To consult it, follow these steps:
1. Section Revenue/MRR : Go to the Analytics > Revenue > MRR section of Fincome. When you press the small arrow below the timeline, the main chart displays your MRR over time, and future MRR is shown 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 according 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 the 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 below the timeline, it allows you to visualize, as soon as they are known, the impact of each movement on your future monthly revenue.
Concretely, on the MRR Movementspage, you can see 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 the reductions in MRR already planned without total customer cancellation. For example, a customer who moves to a lower plan at their next renewal, or the end of a promotional discount that will decrease the subscription amount.
Upcoming expansions (upsells) : conversely to contractions, these are planned increases in MRR on existing subscriptions. For example, a customer agreed to move to a higher plan in two months, or an additional module 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.
Future new 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 starts next month), Fincome will integrate it as a future movement of new MRR.
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