How To Calculate ARR by Cohort in Deltek | Arithmix

Calculating ARR by cohort is a valuable way to analyze your company's revenue growth over time. By grouping customers who signed up during the same period, you can better understand how your revenue is growing and identify trends that can help you make strategic decisions. In this article, we'll walk you through how to calculate ARR by cohort in Deltek, a popular project management software.

What Is ARR by Cohort?

ARR stands for Annual Recurring Revenue, which is the amount of revenue your company generates from subscription-based products or services in a year. Cohort analysis is a way of grouping customers based on a shared characteristic, such as the month they signed up for your service. ARR by cohort is a way of measuring the revenue generated by each cohort over time.

For example, let's say you offer a subscription-based software service. You might group customers who signed up in January 2020 into one cohort, customers who signed up in February 2020 into another cohort, and so on. By tracking the revenue generated by each cohort over time, you can see how your revenue is growing and identify trends that can help you make strategic decisions.

When Is It Valuable To Calculate ARR by Cohort?

Calculating ARR by cohort is valuable in a variety of situations. For example, if you're trying to identify which marketing campaigns are most effective, you might group customers by the month they signed up and compare the revenue generated by each cohort. This can help you identify which campaigns are driving the most revenue and adjust your marketing strategy accordingly.

ARR by cohort can also be useful when you're trying to identify trends in your customer base. For example, if you notice that customers who signed up in a particular month are churning at a higher rate than other cohorts, you might investigate why that is and take steps to reduce churn among that group.

Overall, calculating ARR by cohort can help you better understand your revenue growth over time and make strategic decisions based on that data. By following the steps outlined above, you can easily calculate ARR by cohort in Deltek and start using this valuable analysis technique to grow your business.

How Do You Calculate ARR by Cohort in Deltek

Deltek itself isn’t naturally geared towards letting you calculate complex metrics like ARR by Cohort. As an alternative, teams typically use products like Arithmix to import data from Deltek and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like Deltek, combine it with data from other systems, and create calculations like ARR by Cohort.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating ARR by Cohort in Arithmix

Calculating metrics like ARR by Cohort is simple in Arithmix. Once you've created your free account, you’ll be able to import your Deltek data, and use it to create natural language formulas for metrics like ARR by Cohort.

Arithmix is designed to give you the power to build any calculations you want on top of your Deltek data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.