Question

MRR Movement - Question about Churned MRR

  • 12 April 2022
  • 1 reply
  • 45 views
R
Userlevel 1
Badge +4

These questions are about how churned MRR is calculated in the MRR Movement charts. 

 

QUESTION 1 - Billing Retry and Grace Periods

How are users who go into billing retry/grace periods categorized during the billing retry and grace periods? Are they placed into the churned MRR bucket, and then back into new MRR when and if their subscription is recovered?

Or are they only placed into the churned MRR bucket when the subscription actually cancelled?


QUESTION 2 - Reactivation after expiration

If a user’s subscription expires and they then joins again later, is this this considered New MRR?

 

 

 

1 reply

ryan
Rank
Userlevel 5
Badge +9

Hey @Ritvik!

 

#1 - Customers are only placed into the churned MRR bucket when the subscription is actually cancelled. So if a grace period expires, and the subscription enters the billing retry period, the MRR is considered churned since the customer no longer has access to the subscription.

 

#2 - Since reactivations show up as renewals, it would not be considered New MRR - the churned MRR that was previously set for the customer would be removed.

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