How To Calculate Net Annual Recurring Revenue in BQE CORE Suite | Arithmix

Calculating net annual recurring revenue (NARR) is an important metric for any business that relies on recurring revenue streams. NARR is the total amount of revenue a business can expect to receive from its recurring customers over the course of a year, after accounting for any discounts, refunds, or cancellations. This metric is particularly valuable for subscription-based businesses, as it helps them understand the long-term value of their customer base and make informed decisions about pricing, marketing, and customer retention.

What Is Net Annual Recurring Revenue?

Net annual recurring revenue is a key performance indicator that measures the amount of revenue a business can expect to generate from its recurring customers over the course of a year. This metric takes into account the total value of all recurring contracts, as well as any discounts, refunds, or cancellations that may occur during the year. By subtracting these factors from the total revenue, businesses can get a more accurate picture of their long-term revenue potential.

For example, if a business has 100 customers who each pay $100 per month for a year, its total annual recurring revenue would be $120,000. However, if 10 of those customers cancel their subscriptions after six months, and two receive a 10% discount, the business's net annual recurring revenue would be $106,800.

When Is It Valuable To Calculate Net Annual Recurring Revenue?

Calculating net annual recurring revenue is valuable for any business that relies on recurring revenue streams, particularly subscription-based businesses. By understanding the long-term value of their customer base, businesses can make informed decisions about pricing, marketing, and customer retention. For example, if a business sees that its net annual recurring revenue is declining, it may need to adjust its pricing or marketing strategy to attract and retain more customers.

Net annual recurring revenue is also valuable for investors and stakeholders, as it provides a clear picture of a business's revenue potential and growth prospects. By tracking this metric over time, investors can assess the health and sustainability of a business's revenue streams and make informed decisions about their investments.

In conclusion, calculating net annual recurring revenue is a valuable metric for any business that relies on recurring revenue streams. By understanding the long-term value of their customer base, businesses can make informed decisions about pricing, marketing, and customer retention, and investors can assess the health and sustainability of a business's revenue streams.

How Do You Calculate Net Annual Recurring Revenue in BQE CORE Suite

BQE CORE Suite itself isn’t naturally geared towards letting you calculate complex metrics like Net Annual Recurring Revenue. As an alternative, teams typically use products like Arithmix to import data from BQE CORE Suite 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 BQE CORE Suite, combine it with data from other systems, and create calculations like Net Annual Recurring Revenue.

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 Net Annual Recurring Revenue in Arithmix

Calculating metrics like Net Annual Recurring Revenue is simple in Arithmix. Once you've created your free account, you’ll be able to import your BQE CORE Suite data, and use it to create natural language formulas for metrics like Net Annual Recurring Revenue.

Arithmix is designed to give you the power to build any calculations you want on top of your BQE CORE Suite 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.