MRR (Monthly Recurring Revenue) – DataFlex Inc.

Official Metric Documentation

Created through

Metric Harmony Alignment Process

1

Metric Name & Summary

Metric Name:
Monthly Recurring Revenue (MRR) – DataFlex, Official Version
Description:
The stable, recurring revenue generated each month from DataFlex's active subscriptions, excluding one-time or usage-based fees.
2

Business Context & Purpose

Why We Track It:
  • MRR is crucial for forecasting DataFlex's ongoing subscription revenue.
  • It eliminates noise from annual or one-time deals, helping leadership gauge actual monthly performance trends.
  • Board members, investors, and the finance team rely on MRR to track growth momentum.
Primary Users:
CFO Finance Team CEO Product Managers Board
3

High-Level Definition

Inclusions:
  • All active paid subscriptions in PostgreSQL (DataFlex's database) that are billed monthly or annually.
  • Annual deals are amortized monthly (e.g., $12k annual contract → counted as $1k MRR).
  • Any seat add-ons that contribute recurring revenue (as separate lines).
Exclusions:
  • One-time setup fees, usage-based overages (often found in the old "metrics repo," but not truly recurring).
  • Trial users not yet converted to paid.
  • Internal "zero-dollar" accounts or dev/test accounts.
4

Detailed Formula & Calculation Steps

4.1 Plain-English Formula

MRR = Sum of (all active subscription amounts)
- If annual: divide the total annual contract value by 12 to get monthly recognized portion
- If monthly: use the standard monthly subscription fee

4.2 Technical Logic/Examples

Example: Annual Plan Handling

A $24,000/year enterprise subscription is $2,000 MRR.

Mid-Month Changes

DataFlex typically applies the new rate in next month's MRR cycle. Partial months might be prorated internally, but not reflected in MRR until the next full cycle.

SQL Snippet (PostgreSQL)

SELECT
SUM(
CASE
  WHEN billing_cycle = 'annual' THEN (subscription_amount / 12)
  ELSE subscription_amount
END
) AS MRR
FROM subscriptions
WHERE status = 'active'
AND fee_type NOT IN ('one_time','usage_overage');

BI Tool Reference (PowerBI)

In PowerBI, the "Active Subscription Revenue" measure has a custom calculation applying the same "annual ÷ 12" logic.

5

Data Sources & Systems

PostgreSQL database

  • Table: subscriptions
  • Relevant Fields: status, subscription_amount, billing_cycle, fee_type, start_date, end_date

PowerBI Dashboards

  • Finance & Product each rely on a shared "Monthly Revenue" dashboard that references the above logic.
  • Any previous 'MRR' metrics in the old "metrics repository" are now deprecated.

Frequency of Data Refresh

  • Data is pulled nightly into PostgreSQL.
  • MRR is typically reported monthly for official finance statements, with daily snapshots for internal tracking.
6

Exceptions & Special Cases

Edge Cases to Be Aware Of

  • Trial Periods:
    Not included until users convert to a paid plan.
  • Usage Overages:
    Excluded from MRR. Overages appear as separate non-recurring line items in finance.
  • Partial Refunds:
    If a mid-month credit is issued, MRR is adjusted at the next monthly cycle.
  • Cancellations:
    If canceled mid-month, DataFlex typically removes them from the next month's MRR.
7

Ownership & Maintenance

Primary Owner:
Charles Rockwell, CFO
Update Cadence:
  • Quarterly Review of definitions—especially if new product lines or subscription models are introduced.
  • Monthly MRR Calculation for board/investor updates.
Change Process:
  • Any proposed changes to how annual deals or partial upgrades are treated must be flagged for Finance + Product sign-off.
  • Document updates are logged in the "Revision History" table below.
8

Revision History

Date Change Approved By
2023-09-10 Created official MRR doc, excluding usage fees & standardizing annual deals. CFO, Head of Product
2023-12-01 Updated partial refund handling—recognized next cycle. CFO, Finance Analyst
9

Disclaimer

This MRR definition is intended for management and investor reporting at DataFlex Inc. It may not align 1:1 with formal accounting/GAAP revenue recognition. Data derived from PostgreSQL database and PowerBI. Changes or discrepancies should be escalated to [Finance Owner].

Why This MRR Doc Solved DataFlex's Chaos

By unifying annual and monthly deals, excluding usage fees, and clarifying ownership, DataFlex ended the persistent confusion between finance dashboards and product analytics. No more contradictory "MRR" numbers floating around—the official doc now defines MRR for every team and provides a stable basis for monthly reports and board meetings.