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 schedule metrics calculation some subscription, order and account metrics, such as today's arr, need to be updated on a scheduled basis please follow the steps below to schedule metics calculation jobs 1 go to system settings and search for “metrics calculation ” this will take you to the “quotes and orders” settings page 2 toggle the option to enable “calculate metrics on a daily basis ” this will schedule the metrics calculation job to run daily at 12 a m 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 $1200 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 metrics name description calculation logic delta cmrr contractual monthly recurring revenue of a particular product or service, effective in between start date and end date for this product 0 if the product or service has a one time revenue model total price / subscription term (in month);0 if subscription term is null delta arr contractual annualized recurring revenue of a particular product or service, effective in between start date and end date for this product 0 if the product or service has a one time revenue model delta cmrr 12;0 if subscription term is null delta acv delta annual contract value , or acv, typically maps to an annualized bookings number it is the calculation of all of the total recurring charges on a subscription for companies that also charge one time fees in conjunction with recurring fees, the first year acv might be higher than later year acvs in a multi year contract for a product with recurring or usage revenue model, it is the same as delta arr;for a product with one time revenue model, it is the same as total price delta tcv delta total contract value refers to the total value of a contract (as compared with acv which is the recurring value of a contract annually), which includes all one time and recurring charges total contract value (tcv) calculates the total recurring charges over the lifetime of a subscription total price 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 metrics name description calculation logic today’s cmrr today’s mrr of an order or quote the aggregated delta cmrr of all order products effective today, where start date <= today’s date <= end datenote summary or split line items are excluded in the calculation `` today’s arr today’s arr of an order or quote the aggregated delta arr of all order products effective today, where start date <= today’s date <= end datenote summary or split line items are excluded in the calculation tcv tcv of an order or quote the aggregated delta tcv of all order products note summary or split line items are excluded in the calculation acv acv of an order or quote the aggregated delta acv of all order products note summary or split line items are excluded in the calculation account the following metrics is calculated in a nightly job, and is persisted with the account metrics name description calculation logic today’s cmrr today’s mrr of all active orders for this account the aggregated delta cmrr of all order products belong to active orders of the selected account, where start date <= today’s date <= end date note summary or split line items are excluded in the calculation today’s arr today’s arr of all active orders for this account the aggregated delta arr of all order products belong to active orders of the selected account, where start date <= today’s date <= end date note summary or split line items are excluded in the calculation = 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 metrics name description calculation logic today’s mrr today’s mrr of this subscription for example, a customer subscribed to a service with a 12 month term, from 1/1/2021 to 12/31/2021, with a delta cmrr of $100 per month then she added 20 users starting 10/1/2021 ending 12/31/2021 with a delta cmrr of $20 per month in this case, if today is 10/08/2021, today’s cmrr is $120 if today is 09/30/2021, today’s cmrr is $100 if today is 01/01/2022, today’s cmrr is $0 the aggregated delta mrr of all order products associated to the current and earlier version of this subscription that are effective today, i e , where start date <= today’s date <= end date for the order products ```text \| today’s arr | today’s arr of this subscription for example, a customer subscribed to a service with a 12 month term, from 1/1/2021 to 12/31/2021, with a delta cmrr of $100 per month then she added 20 users starting 10/1/2021 ending 12/31/2021 with a delta cmrr of $20 per month in this case, if today is 9/30/2021, today’s arr is $1200 if today is 10/8/2021, today’s arr is $1440 | the aggregated delta mrr of all order products associated to the current and earlier version of this subscription that are effective today, i e , , where start date \\<= today’s date \\<= end date for the order products | \| today’s quantity | today’s quantity of this subscription for example, a customer subscribed to a service with a 12 month term, from 1/1/2021 to 12/31/2021, with a quantity of 100 users per month then she added 20 users starting 10/1/2021 ending 12/31/2021 in this case, if today is 10/08/2021, today’s quantity is 100 if today is 09/30/2021, today’s quantity is 120 | the aggregated quantity of all order products associated to the current and earlier version of this subscription that are effective today, i e , , where start date \\<= today’s date \\<= end date for the order products | \| tcv | tcv of the subscription | | \| total tcv | total tcv of this subscription, as well as all its children, nested assets, including subscriptions, physical assets and entitlements for example, if a subscription sub 001 has the following children assets subscription sub 001, tcv $1000 entitlement ent 001, tcv $2000 subscription sub 002, tcv $1000 \ physical asset asst 001, tcv $200then the total tcv for subscription sub 002 is 1200, and the total tcv for subscription sub 001 is $4200 (= 1000 + 2000 + 1200) | the aggregated tcv of this subscription as well as all its children assets, including subscriptions, assets and entitlements | \| today’s total cmrr | today’s total cmrr of this subscription, as well as all its children subscriptions | the aggregated today’s cmrr of this subscription as well all its children subscriptions | \| today’s total arr | today’s total arr of this subscription, as well as all its children subscriptions | the aggregated today’s arr of this subscription as well all its children subscriptions |