How to Get Your Monthly Recurring Revenue (MRR) from Your Paddle Account
Hi, I'm Alex, and welcome back to the Boathouse Paddle series, where we talk about everything concerning Paddle. Today, we’re diving into a crucial topic: How to get your Monthly Recurring Revenue (MRR) number from your Paddle account. Let’s get started!
Introduction to MRR in Paddle
Understanding your MRR is essential for any business utilizing subscription-based models. Paddle provides an overview page displaying various revenue numbers, but those numbers don’t always accurately represent your MRR, especially if you have a mix of monthly, annual, or one-time fees in your account.
What is MRR?
MRR stands for Monthly Recurring Revenue, a key metric for subscription-based businesses to understand their predictable, recurring revenue.
Basic Revenue Numbers vs. MRR
In your Paddle account, you can see today's revenue and revenue for specific periods, such as last month.
The revenue number here is not your MRR, or it doesn't have to be.
If your Paddle account only has monthly plans, this revenue could represent your MRR. However, as soon as you introduce annual billing, one-time fees, or other complexities, the straightforward revenue number won't reflect your true MRR.
Utilizing ProfitWell for Accurate MRR
Good news! Paddle acquired a company called ProfitWell, known for its robust metrics dashboard. Now, all Paddle users have access to this powerful tool to accurately calculate their MRR.
Accessing ProfitWell
To access ProfitWell, click on the "Subscription Metrics" link at the bottom left of your Paddle dashboard. This will open the ProfitWell interface. If you're using it for the first time, it may take a while to sync your data, but rest assured, the data you see is synced live with Paddle.
Key Metrics in ProfitWell
MRR Calculation
Right at the top left of the ProfitWell dashboard, you can find the MRR for your account. ProfitWell automatically adjusts for different billing cycles—whether monthly, quarterly, or annual—by appropriate calculations.
This already takes into account if you have any annual plans, it will divide it by twelve quarterly, weekly plans and so on will be corrected.
Growth Metrics
ProfitWell offers more than just your MRR. You can observe the growth of your MRR, see the number of active customers, and other valuable statistics.
Customer Activity
On the right side of the dashboard, the "Customer Activity" tab provides an overview of essential events like new subscriptions, upgrades, downgrades, and churn (cancellations).
Detailed Metrics
Revenue Trends
Clicking into the MRR overview presents how your MRR has progressed over time, showing dips, spikes, and changes. This section allows you to break down these numbers over the last six months, which can be handy for financial reporting.
Churn Overview
Churn is another critical metric that ProfitWell calculates but definitely in the software. The Churn Overview helps you understand how many customers you are losing versus gaining, crucial for making informed business decisions.
This is structured very similar to the MRR overview, except that it talks about churn churn being how many of your customers are canceling versus how many new subscriptions do you have.
Enhancing Revenue with Paddle Retain
Another feature to highlight is Paddle Retain, which was formerly known as ProfitWell Retain. This tool helps recover failed payments by contacting customers via email or other methods to update their payment information.
Paddle Retain ensures that failed payments are followed up on and often recovered, minimizing lost revenue.
Conclusion
Understanding and accurately tracking your MRR is imperative for the health of your subscription business. Paddle, combined with ProfitWell, provides robust tools to ensure you have the metrics you need. From basic revenue tracking to detailed churn analysis, these dashboards offer comprehensive insights.
Stay tuned for more videos and blog posts on the features of ProfitWell and Paddle.
Thank you for joining me on this informative journey on how to get your MRR number from Paddle! If you have any questions or topics you’d like to see covered, feel free to drop a comment below.
Alex from the Boathouse Paddle Series
Join the Discussion:
Do you use ProfitWell's metrics for your business? Share your experiences in the comments below!
For the YouTubeEmbed id you can use: The most likely video id for this blog article seems to be "iX-2BY2-wvo" which has the title "How do you get MRR from the Paddle API?". This is because the blog article discusses the process of getting Monthly Recurring Revenue (MRR) from the Paddle account which matches closely to the video title.
