Subscription and Order Metrics

Nue provides comprehensive insight data across three major areas: 

1. Subscription Metrics: These include real-time metrics on subscription revenue streams, activated upon order processing and visualized in the Lifecycle Manager.

2. Order Metrics: Metrics such as delta ARR and delta CMRR are generated in real-time at the line level and rolled up to the order level instantly.

3. Account Metrics: Metrics related to overall account performance, including Today’s ARR, Today’s CMRR, Total TCV, and Total Rollup TCV, are calculated daily to reflect up-to-date values for “Today” and total aggregations.

Orders vs. Subscriptions

In Nue, Subscriptions and Orders are serving different purposes in the revenue lifecycle.

A Subscription is a type of service contract offered by a company that allows customers to receive regular updates or access to content for a recurring fee.  It is also considered a virtual asset that a customer owns.  On the other hand, an Order is a transactional object that represents a customer's purchase of a product or service at a time.

In terms of the object model, a Subscription includes information such as the start date, end date, billing frequency, payment method, and the specific content or services included in the subscription, while an order contains information such as the product or service being purchased, the quantity, price, payment method, shipping address, and any applicable discounts or taxes.

The key difference between a Subscription and an Order is that a Subscription represents an ongoing service or content access, while an Order represents a one-time purchase of a product or service. Subscriptions typically require ongoing billing and payment processing, while Orders are typically processed as a one-time transaction.

Therefore, in Nue, a subscription represents the latest and greatest of what a customer owns, including the Start and End Date of the subscription term, the total quantity, etc.  An order, on the other hand, contains one or more order products, each representing the booking transaction of a product or service.  Each order product captures a change, in Quantity, Total Amount, or Subscription Term, which could be a change from 0 to 1 for a new subscription, asset or entitlement, or a change for an existing subscription, asset or entitlement, resulted from an upsell / downsell, cross-sell, cancellation, renewal, co-term, etc.

The following diagram illustrates the relationshis between an initial order, a subscription, asset or entitlement, and a change order.

Example

For example, if a customer Smart Revenue places an initial order O-001 containing an order product OP-001 for a subscription starting 01/01/2023 and ending 12/31/2023, with 100 users at $10 License/Month.  

When the order O-001 is activated, we will have the following metrics for the order product OP-001: 

• Delta ACV (and TCV): $12,000
• Delta ARR between 01/01 and 12/31: $12,000
• Delta CMRR between 01/01 and 12/31: $1,000

Now Smart Revenue adds 10 more users at $10 per License/Month, starting 07/01/2023, co-terming at 12/31/2023.  This is reflected in a second order O-002 containing an order product OP-002.  

When the order O-002 is activated, we will have the following metrics for the order product OP-002: 

• Delta ACV (and TCV): $600
• Delta ARR between 07/01 and 12/31: $1,200
• Delta CMRR between 07/01 and 12/31: $100

So for the subscription, between 01/01 and 06/30, the total ARR is $12,000; between 07/01 and 12/31, the total ARR is $13,200. 

The following image shows the 2 orders placed: The initial order O-001 and the change order O-002: 

The following image shows the subscription and its revenue stream after the initial order and the change order are both activated.  When the user mouse over the Subscription Revenue Stream, she can clearly see Today's ARR, as well as change in ARR over time.

Note that: 

• The Subscription shows the latest and greatest information after the second order is placed with Total User 110.  However, today's ARR is $12,600 (since today is before 07/01/2023 as shown in the chart).
• Total TCV is $12,600, but the total ARR between 07/01/2023 and 12/31/2023 is $13,200.

Basic Metrics

The following table contains all the basic metrics that is calculated for each business object while transactions occur.  

Quote Line Item & Order Product

The following metrics is calculated in the Line Editor when an order or quote is being updated, and persisted with the quote line item or the order product.  In Nue, we consider an order product as a Booking Transaction.

Quote and Order

The following metrics is calculated in the Line Editor while the quote and order is being updated, and is persisted with the quote or order.

Account

The following metrics is calculated in a nightly job, and is persisted with the account.  

Subscription

The following metrics is calculated in a nightly job, and is persisted with the account.  

Asset Order Product object stores the relationship between an asset (including a 3 asset types: Physical Asset, Subscription, Entitlement) and its order products from all the historical orders leading to the latest version. In order to get Today's MRR and Today's ARR, Nue queries the order products from this table that are effective today.