How To Calculate ARR Cohort Analysis in Sage Intacct | Arithmix

If you're looking to gain a deeper understanding of your company's revenue trends, then calculating ARR cohort analysis can be a valuable tool. This analysis allows you to track the revenue generated by a specific group of customers over time, providing insight into how your business is growing and evolving.

While there are many software solutions that can help you perform this analysis, Sage Intacct is one of the most popular options. Here's a step-by-step guide to calculating ARR cohort analysis in Sage Intacct:

1. Log in to your Sage Intacct account and navigate to the "Reports" section.
2. Select "Financial" from the list of report categories.
3. Choose "Revenue Recognition" from the list of report types.
4. Select the "ARR Cohort Analysis" report.
5. Choose the date range and cohort grouping that you want to analyze.
6. Click "Run Report" to generate your results.

Once you have your results, you can use them to identify trends in your revenue growth and make informed decisions about how to optimize your business strategy.

What Is ARR Cohort Analysis?

ARR cohort analysis is a method of tracking the revenue generated by a specific group of customers over time. The term "ARR" stands for "annual recurring revenue," which is the amount of revenue that a company generates from its customers on an annual basis.

By grouping customers into cohorts based on the date they signed up for your service or made their first purchase, you can track how their revenue contribution changes over time. This can help you identify trends in customer behavior and make informed decisions about how to optimize your business strategy.

When Is It Valuable To Calculate ARR Cohort Analysis?

ARR cohort analysis can be valuable in a variety of situations. Here are a few examples:

• If you're looking to identify trends in your revenue growth over time, ARR cohort analysis can help you see how different groups of customers are contributing to your overall revenue.
• If you're considering making changes to your pricing or product offerings, ARR cohort analysis can help you understand how those changes might impact different groups of customers.
• If you're trying to identify areas where you can improve customer retention, ARR cohort analysis can help you see which cohorts of customers are most likely to churn and why.

Overall, ARR cohort analysis is a valuable tool for any business that wants to gain a deeper understanding of its revenue trends and customer behavior. By tracking the revenue generated by specific groups of customers over time, you can make informed decisions about how to optimize your business strategy and drive growth.

How Do You Calculate ARR Cohort Analysis in Sage Intacct

Sage Intacct itself isn’t naturally geared towards letting you calculate complex metrics like ARR Cohort Analysis. As an alternative, teams typically use products like Arithmix to import data from Sage Intacct 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 Sage Intacct, combine it with data from other systems, and create calculations like ARR Cohort Analysis.

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 Cohort Analysis in Arithmix

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

Arithmix is designed to give you the power to build any calculations you want on top of your Sage Intacct 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.