Product metrics. Part 10- revenue metrics

 


Revenue Metrics


1. Monthly Recurring Revenue (MRR)


Definition: Predictable revenue from subscriptions in a month.

Formula:

MRR = Total Active Subscribers × Average Revenue per User (ARPU)


Examples:


SaaS Tool: 1,000 users × ₹1,000 →

= ₹10,00,000 MRR


Gym App: 2,000 subscribers × ₹500 → ₹10L MRR.


E-learning Platform: 5,000 students × ₹300/month → ₹15L MRR.




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2. Annual Recurring Revenue (ARR)


Definition: Yearly version of MRR.

Formula:

ARR = MRR × 12


Examples:


Cloud SaaS: ₹5L MRR →

= ₹60L ARR


Language App: ₹1.2L MRR → ₹14.4L ARR.


HR Software: ₹20L MRR → ₹2.4 Cr ARR.




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3. Average Revenue per User (ARPU)


Definition: Avg. revenue per customer in a given period.

Formula:

ARPU = Total Revenue / Number of Users


Examples:


D2C Brand: ₹20L revenue from 4,000 users →

= ₹500 ARPU


OTT Platform: ₹18L from 3,000 users → ₹600 ARPU.


Health App: ₹6L from 2,000 users → ₹300 ARPU.




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4. Revenue Growth Rate


Definition: % increase in revenue over time.

Formula:

Growth Rate = ((This Period - Last Period) / Last Period) × 100


Examples:


Insurance SaaS: ₹10L → ₹12L →

= ((12-10)/10)×100 = 20%


Food Delivery App: ₹25L → ₹30L → 20% growth.


B2B CRM: ₹1Cr → ₹1.3Cr → 30% growth.




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5. Customer Lifetime Value (CLTV)


(Already covered in Retention but important here too)

Used to assess long-term revenue potential.



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6. Revenue per Employee


Definition: Revenue generated per team member.

Formula:

Revenue per Employee = Total Revenue / Total Employees


Examples:


SaaS Startup: ₹2 Cr / 20 employees →

= ₹10L per employee


Fintech Firm: ₹5 Cr / 50 staff → ₹10L/employee.


Online Grocery: ₹10 Cr / 100 people → ₹10L/employee.




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7. Expansion Revenue


Definition: Revenue from existing customers via upsells, add-ons, upgrades.


Examples:


SaaS CRM: 300 upgraded plans → ₹6L added.


Fitness Platform: Added ₹2L via meal plans.


Email Tool: ₹1L via automation add-ons.




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8. Revenue Concentration


Definition: % of revenue dependent on a few clients.

Formula:

Revenue Concentration = (Revenue from Top X Customers / Total Revenue) × 100


Examples:


B2B SaaS: ₹30L from top 5 clients, total ₹1 Cr →

= 30%


Enterprise CRM: ₹60L from top 3 out of ₹2 Cr → 30%.


Logistics SaaS: ₹15L from one big client out of ₹50L → 30%.




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