How To Calculate ARR by Cohort in Flexi | Arithmix

Calculating ARR by cohort is a powerful way to understand the revenue generated by a specific group of customers over a period of time. It allows you to see how much revenue is generated by customers who signed up during a specific time period, or cohort, and how that revenue changes over time. This information can be incredibly valuable for businesses looking to understand customer behavior and make informed decisions about their marketing and sales strategies.

What Is ARR by Cohort?

ARR, or Annual Recurring Revenue, is a metric used to measure the predictable, recurring revenue generated by a business's customers over a year. ARR by cohort takes this one step further by breaking down the revenue generated by customers who signed up during a specific time period, or cohort. By tracking the revenue generated by each cohort over time, businesses can gain insights into how customer behavior changes over time and how different marketing and sales strategies impact revenue.

For example, let's say a business has two cohorts of customers: one that signed up in January and one that signed up in February. By calculating the ARR for each cohort, the business can see how much revenue each cohort generated over the course of a year. They can also compare the two cohorts to see if there are any differences in revenue generation between the two groups.

When Is It Valuable To Calculate ARR by Cohort?

Calculating ARR by cohort can be valuable for businesses in a variety of situations. For example:

• If a business is launching a new product or service, calculating ARR by cohort can help them understand how much revenue is generated by customers who sign up during the initial launch period.
• If a business is running a marketing campaign, calculating ARR by cohort can help them understand how much revenue is generated by customers who sign up during the campaign period.
• If a business is trying to understand customer behavior over time, calculating ARR by cohort can help them see how revenue generation changes over time for different groups of customers.

Overall, calculating ARR by cohort can provide businesses with valuable insights into customer behavior and revenue generation over time. By tracking this metric, businesses can make informed decisions about their marketing and sales strategies and optimize their revenue generation over time.

How Do You Calculate ARR by Cohort in Flexi

Flexi 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 Flexi 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 Flexi, 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 Flexi 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 Flexi 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.