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Nue Object Model - Revenue Lifecycle Intelligence

This article contains the object model used to generate the ARR Momentum and other ARR metrics.  

ARR by Period

Overview

The ARR by Period table is a time series table, storing the Opening and Closing ARR values for each fiscal month, of each active order product, constituting a substantial dataset. This information serves as the foundation for generating various reports on ARR trends and other essential booking metrics.

 

The ARR by Period table operates on a strictly incremental basis. Once generated, the records within this table remain static and are not subject to updates. When a new change order is initiated and activated, fresh ARR by Period records are generated specifically for this newly activated order.

 

EXAMPLE

 

VROOM Inc. follows a fiscal period aligned with the calendar year, with quarters beginning on 01/01, 04/01, 07/01, and 10/01.

 

  • Our Account Executive Chloe landed Customer A on 01/01/2023 with a 12-month subscription S-001, starting 01/15/2023, and a $1000 MRR.  This results in Order O-1 containing Order Product OP-001. 
  • Chloe then landed Customer B on 01/23/2023 with a 3-month subscription S-002 starting 02/01/2023, and a $2000 MRR.  This results in Order O-2 containing Order Product OP-002.
  • Chloe later upsold Customer A on 02/01/2023, starting 04/01/2023 co-termed with the original subscription S-001, and a $600 additional MRR.  This results in Order O-3, containing Order Product OP-003.

Given this scenario, what are Chloe's contributions to the Opening and Closing ARR from Customer A and Customer B for each quarter in fiscal year 2023?

 

To answer this question, let's first take a look at all the 3 orders Chloe created:

 

ORDERORDER PRDUCTCUSTOMERSUBSCRIPTIONSTART DATEEND DATEDELTA MRRDELTA ARR
O-1OP-001Customer AS-00101/15/202301/14/2024$1000$12000
O-2OP-002Customer BS-00202/01/202304/30/2024$2000$24000
O-3OP-003Customer AS-00104/01/202301/14/2024 (Co-term with OP-001)$600$7200

 

Upon the activation of every order, Nue generates ARR by Period records for each product within the order on a monthly basis, aligning with the company's fiscal year.

 

Therefore, the following ARR by Period records are generated (A full description of the object can be found later in this article): 

 

ORDERORDER PRDUCTCUSTOMERUSERSUBSCRIPTIONCHANGE CATEGORYSTART DATEEND DATEOPENING CMRRCLOSING CMRR
Order O-1 for Customer A, Subscription S-001
O-1OP-001Customer AChloeS-001New Business01/01/202301/31/2023$0$1000
O-1OP-001Customer AChloeS-001New Business02/01/202302/282023$1000$1000
O-1OP-001Customer AChloeS-001New Business03/01/202303/31/2023$1000$1000
O-1OP-001Customer AChloeS-001New Business04/01/202304/30/2023$1000$1000
O-1OP-001Customer AChloeS-001New Business05/01/202305/31/2023$1000$1000
O-1OP-001Customer AChloeS-001New Business06/01/202306/30/2023$1000$1000
O-1OP-001Customer AChloeS-001New Business07/01/202307/31/2023$1000$1000
O-1OP-001Customer AChloeS-001New Business08/01/202308/31/2023$1000$1000
O-1OP-001Customer AChloeS-001New Business09/01/202309/30/2023$1000$1000
O-1OP-001Customer AChloeS-001New Business10/01/202310/31/2023$1000$1000
O-1OP-001Customer AChloeS-001New Business11/01/202311/30/2023$1000$1000
O-1OP-001Customer AChloeS-001New Business12/01/202312/31/2023$1000$1000
O-1OP-001Customer AChloeS-001New Business01/01/202401/31/2024$1000$0
Order O-2 for Customer B, Subscription S-002
O-2OP-002Customer BChloeS-002New Business02/01/202302/282023$0$2000
O-2OP-002Customer BChloeS-002New Business03/01/202303/31/2023$2000$2000
O-2OP-002Customer BChloeS-002New Business04/01/202304/30/2023$20000
Change Order O-3 for Customer A, Subscription S-001 
O-3OP-003Customer AChloeS-003Upsell/Expansion04/01/202304/30/2023$0$600
O-3OP-003Customer AChloeS-003Upsell/Expansion04/01/202304/30/2023$600$600
O-3OP-003Customer AChloeS-003Upsell/Expansion05/01/202305/31/2023$600$600
O-3OP-003Customer AChloeS-003Upsell/Expansion06/01/202306/30/2023$600$600
O-3OP-003Customer AChloeS-003Upsell/Expansion07/01/202307/31/2023$600$600
O-3OP-003Customer AChloeS-003Upsell/Expansion08/01/202308/31/2023$600$600
O-3OP-003Customer AChloeS-003Upsell/Expansion09/01/202309/30/2023$600$600
O-3OP-003Customer AChloeS-003Upsell/Expansion10/01/202310/31/2023$600$600
O-3OP-003Customer AChloeS-003Upsell/Expansion11/01/202311/30/2023$600$600
O-3OP-003Customer AChloeS-003Upsell/Expansion12/01/202312/31/2023$600$600
O-3OP-003Customer AChloeS-003Upsell/Expansion01/01/202401/31/2024$600$0

 

The table above provided displays the Opening CMRR, Closing CMRR, Opening ARR, and Closing ARR generated by each order product on a monthly basis throughout the entire subscription term. This detailed breakdown enables us to analyze and manipulate the data in various ways, facilitating comprehensive aggregation and analysis.

 

For the above example, If I want to calcualted the Opening and Closing ARR contributed by Chloe for each fiscal quarter, I can simply find the ARR by Period records with Start Date on the following start dates of each quarter: 

  • 01/01/2023
  • 04/01/2023
  • 07/01/2023
  • 10/01/2023 

The records retrieved are as follows: 

 

ORDERORDER PRDUCTCUSTOMERUSERSUBSCRIPTIONCHANGE CATEGORYSTART DATEEND DATEOPENING CMRRCLOSING CMRR
O-1OP-001Customer AChloeS-001New Business01/01/202301/31/2023$0$1000
O-1OP-002Customer AChloeS-001New Business04/01/202304/30/2023$1000$1000
O-2OP-002Customer BChloeS-002New Business04/01/202304/30/2023$20000
O-3OP-003Customer AChloeS-003Upsell/Expansion04/01/202304/30/2023$0$600
O-1OP-001Customer AChloeS-001New Business07/01/202307/31/2023$1000$1000
O-3OP-003Customer AChloeS-003Upsell/Expansion07/01/202307/31/2023$600$600
O-1OP-001Customer AChloeS-001New Business10/01/202310/31/2023$1000$1000
O-3OP-003Customer AChloeS-003Upsell/Expansion10/01/202310/31/2023$600$600

 

Now we can do a simple aggregation, and get the following results: 

 

QUARTEROPENING CMRRCLOSING CMRR
Q1$0$3000
Q2$3000$1600
Q3$1600$1600
Q4$1600$1600

 

To accommodate the potential volume of data, we utilize the ARR by Period big object within Salesforce. Salesforce permits storage of up to 1 million records for each Big Object. If your organization maintains a significant number of subscriptions (for instance, if the average subscription term spans 12 months, surpassing 83,333 subscriptions would likely exceed the Big Object storage limit), please contact Salesforce to raise the limit of the storage capacity.

 

In addition to ARR by Period big object table, we also provide ARR by Period by Customer big object table.  The field definitions for these two big objects are identical, with the only distinction lying in their indexes.  The ARR by Period table is tailored for efficient querying by Start Date, while the ARR by Period by Customer table is optimized for queries based on Customer and Subscription parameters.

 

Nue also generates an ARR by Period view within our Snowflake data warehouse, enabling the creation of more sophisticated metrics and analytics. For further insights into analytics within Revenue Lifecycle Intelligence, please refer to this article.  

Field Definitions

Object Name: ARR By Period

API Name: ArrByPeriod (Salesforce: Ruby__ArrByPeriod__b)

 

FIELD NAME

DATA TYPE

DESCRIPTION

Asset Order ProductLookup (Asset Order Product)
Change CategoryText
Available values are:
New Business

Upsell/Expansion

Cross-sell

Downsell/Contraction

Cancel/Churn

Renewal
Change In ARRDecimal: Currency
Added and lost ARR occurred any day in a fiscal period.
Change In CMRRDecimal: Currency
Added and lost CMRR occurred any day in a fiscal period.
Closing ARRDecimal: Currency
ARR as of the closing of this period, not including the ARR lost on the last day of this period.
Closing CMRRDecimal: Currency
CMRR as of the closing of this period, not including the CMRR lost on the last day of this period.
Currency CodeText
Associated currency ISO code
CustomerLookup(Account)
The reference to customer.
Customer NameText
The name of the customer
End DateDate
The end date of this period
IDID The record ID.
Opening ARRDecimal: Currency
ARR as of the opening of this period, not including the ARR added on the first day of this period.
Opening CMRRDecimal: currency
CMRR as of the opening of this period, not including the ARR added on the first day of this period.
Order ProductLookup(Order Product)
The reference to order product.
ProductLookup(Product)
The reference to product.
Product NameText
The name of the product
QuantityNumber(15,3)
The quantity of the order product.
Start DateDate
The start date of this period
SubscriptionLookup(Subscription)
The reference to the subscription.
Subscription NumberText
The subscription number
UserLookup(User)
Owner of the order

ARR By Period Data Generation

Define Fiscal Periods in Salesforce

ARR by Period records are generated in real-time when orders are activated.  Before creating your first active order, either on UI or via order imports, you need to have Fiscal Periods created in Salesforce.  Please refer to this Salesforce article for creating fiscal periods in Salesforce, or consult your Salesforce consultant.  

Regenerate ARR by Period Data

In certain cases, when there are updates to Fiscal Periods or the creation of older ones to synchronize with historical data, you must regenerate ARR by Period data. Please follow the steps below: 

  • Login to Nue App, and navigate to Settings
  • In the search bar, enter the keyword 'Regenerate', then choose the 'Generate or regenerate monthly delta ARR for active orders' option. Click on the 'Run Now' button located next to the selected option. Please be aware that it might require a few minutes for the ARR Regeneration process to finish entirely.