How To Calculate Net Annual Recurring Revenue in Kantana | Arithmix
Learn how to calculate Net Annual Recurring Revenue (NARR) in Kantana with our comprehensive guide. Discover the key metrics and formulas needed to accurately measure your business's recurring revenue and make informed decisions for growth.
Calculating net annual recurring revenue (NARR) is an important metric for any business that relies on subscription-based revenue models. NARR is the total amount of revenue a company generates from its recurring subscriptions, minus any refunds, cancellations, or discounts. This metric helps businesses understand the true value of their subscription-based revenue streams, and can be used to make informed decisions about pricing, marketing, and growth strategies.
What Is Net Annual Recurring Revenue?
Net annual recurring revenue is a financial metric that measures the total amount of revenue a business generates from its recurring subscription-based services over a 12-month period. This includes revenue from monthly or annual subscriptions, as well as any additional fees or charges associated with those subscriptions. NARR is calculated by subtracting any refunds, cancellations, or discounts from the total revenue generated by subscriptions over the course of a year.
For example, if a company generates $100,000 in revenue from monthly subscriptions over the course of a year, but also issues $10,000 in refunds and discounts, the net annual recurring revenue would be $90,000.
When Is It Valuable To Calculate Net Annual Recurring Revenue?
Calculating net annual recurring revenue is valuable for any business that relies on subscription-based revenue models, as it provides a clear picture of the true value of those revenue streams. This metric can be used to make informed decisions about pricing, marketing, and growth strategies, as well as to identify areas for improvement.
For example, if a business is experiencing a high rate of cancellations or refunds, calculating NARR can help identify the root cause of those issues and inform strategies to address them. Additionally, NARR can be used to compare the performance of different subscription-based services or pricing models, and to track the impact of changes to those models over time.
In summary, calculating net annual recurring revenue is a valuable tool for any business that relies on subscription-based revenue models. By providing a clear picture of the true value of those revenue streams, NARR can inform pricing, marketing, and growth strategies, as well as identify areas for improvement and track the impact of changes over time.
How Do You Calculate Net Annual Recurring Revenue in Kantana
Kantana 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 Kantana 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 Kantana, 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 Kantana 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 Kantana 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.Use Arithmix free