> ## Documentation Index
> Fetch the complete documentation index at: https://docs.ledgerup.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# Revenue Tracking

> Track ARR, MRR, CARR, and key revenue metrics directly from Slack

export const AriMention = () => <span className="slack-mention">@Ari</span>;

export const SlackMessage = ({children, name = "Bailey", initials = "B", color = "#611f69", avatar = "/images/bailey-avatar.png", app = false, time = "2:47 PM"}) => <div className="slack-msg not-prose">
    <div className="slack-avatar" style={{
  backgroundColor: avatar ? "transparent" : color
}}>
      {avatar ? <img src={avatar} alt={name} /> : initials}
    </div>
    <div className="slack-msg-body">
      <span className="slack-name">{name}</span>
      {app ? <span className="slack-app-badge">APP</span> : null}
      <span className="slack-time">{time}</span>
      <div className="slack-text">{children}</div>
    </div>
    <div className="slack-actions">
      <button type="button" className="slack-action-btn" aria-label="Copy message" title="Copy message" onClick={e => {
  const msg = e.currentTarget.closest(".slack-msg");
  const el = msg && msg.querySelector(".slack-text");
  if (el && navigator.clipboard) {
    navigator.clipboard.writeText(el.innerText);
    const btn = e.currentTarget;
    const prev = btn.innerHTML;
    btn.innerHTML = '<svg viewBox="0 0 24 24" fill="none" stroke="#2AD48A" stroke-width="2.5" stroke-linecap="round" stroke-linejoin="round"><polyline points="20 6 9 17 4 12"/></svg>';
    setTimeout(() => {
      btn.innerHTML = prev;
    }, 1200);
  }
}}>
        <svg viewBox="0 0 24 24" fill="none" stroke="currentColor" strokeWidth="2" strokeLinecap="round" strokeLinejoin="round">
          <rect x="9" y="9" width="13" height="13" rx="2" ry="2" />
          <path d="M5 15H4a2 2 0 0 1-2-2V4a2 2 0 0 1 2-2h9a2 2 0 0 1 2 2v1" />
        </svg>
      </button>
    </div>
  </div>;

Understanding your revenue is critical to business health. Ari provides instant visibility into your key metrics, Annual Recurring Revenue (ARR), Monthly Recurring Revenue (MRR), and Committed Annual Recurring Revenue (CARR), calculated using waterfall methodology. Get company-wide, by-customer, or by-product breakdowns anytime.

## Understanding Key Metrics

Ari reports ARR, MRR, CARR, and the MRR waterfall on request. For what each of those
terms means, see the [Revenue Analytics FAQ](/ari/answers/revenue-analytics).

## Viewing MRR Waterfall

See exactly how your monthly recurring revenue changed from month to month.

<SlackMessage><AriMention /> show me the MRR waterfall for January 2024</SlackMessage>

<SlackMessage><AriMention /> break down this month's revenue changes</SlackMessage>

The waterfall typically includes:

* **Starting MRR**: MRR at the beginning of the period
* **New Customers**: MRR added from new subscriptions
* **Expansions**: Additional revenue from upgrades or add-ons
* **Contractions**: Revenue lost from downgrades
* **Churn**: Revenue lost from canceled subscriptions
* **Ending MRR**: MRR at the end of the period

<Note>
  The waterfall gives you the clearest picture of what's driving revenue growth or decline. Use it to identify which areas need attention.
</Note>

This MRR waterfall is separate from the **revenue recognition waterfall**, which
spreads invoiced amounts across future periods for accounting purposes and spans
Stripe, QuickBooks, Xero, and Sage. See the
[Revenue Analytics FAQ](/ari/answers/revenue-analytics) for how that one works and
whether it matches what you see in Stripe directly.

## Ask Ari about your revenue

Everything below is a live lookup, not a separate report you have to build. Ask any of
these and Ari answers from current data.

<AccordionGroup>
  <Accordion title="Company-wide metrics" icon="building">
    Get your entire company's revenue picture instantly.

    <SlackMessage><AriMention /> what is our current ARR?</SlackMessage>

    <SlackMessage><AriMention /> what's this month's MRR?</SlackMessage>

    <SlackMessage><AriMention /> what's our total CARR (committed annual recurring revenue)?</SlackMessage>

    <SlackMessage><AriMention /> what was our ARR on January 1, 2024?</SlackMessage>

    <Tip>
      Ask for any point in time. Ari calculates historical metrics by looking at subscription states on specific dates.
    </Tip>
  </Accordion>

  <Accordion title="Revenue by customer" icon="user">
    Understand which customers contribute most to your revenue.

    <SlackMessage><AriMention /> who are our top 10 customers by ARR?</SlackMessage>

    <SlackMessage><AriMention /> what's Acme Corp's ARR?</SlackMessage>

    <SlackMessage><AriMention /> show me TechStart Inc's revenue trend over the last 6 months</SlackMessage>

    <SlackMessage><AriMention /> what percentage of our MRR comes from new customers vs existing?</SlackMessage>
  </Accordion>

  <Accordion title="Revenue by product" icon="boxes-stacked">
    If you offer multiple products or plans, segment your revenue accordingly.

    <SlackMessage><AriMention /> what's the MRR for our Professional plan?</SlackMessage>

    <SlackMessage><AriMention /> show revenue breakdown by product</SlackMessage>

    <SlackMessage><AriMention /> which product has the highest ARR?</SlackMessage>
  </Accordion>

  <Accordion title="Forecasting" icon="chart-line">
    Project future revenue based on current subscriptions and growth trends.

    <SlackMessage><AriMention /> forecast our ARR for Q2 2024</SlackMessage>

    <SlackMessage><AriMention /> what will our MRR be in 3 months if we maintain current churn?</SlackMessage>

    <SlackMessage><AriMention /> show expected revenue through end of year</SlackMessage>

    <Tip>
      Revenue forecasts assume no new customers, churn, or changes. Use this as a baseline, actual revenue will vary.
    </Tip>
  </Accordion>

  <Accordion title="Cohort analysis" icon="users">
    Group customers by when they started and see how each cohort performs.

    <SlackMessage><AriMention /> show MRR by customer cohort (e.g., customers acquired in Jan, Feb, Mar)</SlackMessage>

    <SlackMessage><AriMention /> what's the revenue retention rate for customers acquired in Q4 2023?</SlackMessage>

    <SlackMessage><AriMention /> compare expansion rates across customer cohorts</SlackMessage>
  </Accordion>

  <Accordion title="Churn and retention" icon="arrow-trend-down">
    Track how well you're keeping customers and the revenue impact.

    <SlackMessage><AriMention /> what's our MRR churn rate this month?</SlackMessage>

    <SlackMessage><AriMention /> how many customers churned in February?</SlackMessage>

    <SlackMessage><AriMention /> what's our 12-month net revenue retention?</SlackMessage>

    <SlackMessage><AriMention /> which customers are likely to churn based on recent activity?</SlackMessage>

    <Note>
      Net revenue retention accounts for both churn and expansion. A rate above 100% means you're expanding within existing customers faster than you're losing them.
    </Note>
  </Accordion>

  <Accordion title="Exporting reports" icon="file-export">
    Save reports for presentations, investor meetings, or deeper analysis.

    <SlackMessage><AriMention /> export this month's revenue analytics to CSV</SlackMessage>

    <SlackMessage><AriMention /> save the MRR waterfall as a PDF</SlackMessage>

    <SlackMessage><AriMention /> create a quarterly revenue report</SlackMessage>
  </Accordion>

  <Accordion title="Scheduling a recurring review" icon="calendar">
    The teams that get the most from Ari schedule the review rather than remembering it:

    <SlackMessage><AriMention /> tell me every Friday at 2 pm what our latest AR Aging is</SlackMessage>

    <SlackMessage><AriMention /> analyze our payment patterns over the last 6 months. Which customer segments pay on time vs. late? Are there any trends?</SlackMessage>
  </Accordion>
</AccordionGroup>

## Revenue vs Invoicing

Revenue (recurring billing) and invoices (one-time or ad-hoc charges) are tracked
separately but can be shown combined. See the
[Revenue Analytics FAQ](/ari/answers/revenue-analytics) for how the two relate.

## Best Practices

* **Review metrics weekly**: Stay on top of MRR trends so you catch churn or expansion early
* **Understand your waterfall**: The waterfall reveals where you're winning and where you're losing revenue
* **Track cohorts**: Customer cohort analysis helps you understand product-market fit and unit economics
* **Monitor net revenue retention**: This is the strongest indicator of healthy recurring revenue business
* **Set revenue targets**: Use historical trends and forecasts to set realistic quarterly and annual goals
* **Share with team**: Post key metrics regularly in Slack to keep teams aligned on progress

## Connecting to Business Goals

Use revenue analytics to:

* **Identify growth areas**: See which products or customer segments are expanding fastest
* **Catch churn early**: Spot trends before they become problems
* **Evaluate pricing changes**: Measure the impact of price increases or new plans
* **Plan hiring**: Revenue growth should drive headcount decisions
* **Build forecasts**: Accurate revenue projections help with financial planning