ARR Calculation Software
Fully Accurate Live MRR & ARR Calculations
Combining subscription expertise with flexible software, Discern automates 100% accurate MRR & ARR calculations that take into account every subscription scenario and edge case.
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Taking on the Most
Complex Calculations
ARR is the key metric for investors and executives alike to evaluate company health and valuation. But, with a complex web of subscription models, add-ons, renewals, and cancellations, pinning down an accurate ARR number can be a big undertaking.
Many SaaS companies are spending several days every month closing out the period for ARR reporting; and even then, many are not 100% confident in their calculation.
At Discern, we’ve transformed this challenge into an opportunity to revolutionize subscription management. Through a meticulous process of defining and programming every subscription scenario, Discern provides clients with complete confidence in their ARR reporting.
No more manual calculations or version control nightmares – Discern’s solutions tracks ARR with 100% accuracy, even snapshotting ARR on a daily basis for a clear audit trail
SaaS Success with ARR Insights
Investor Confidence
Accurate, consistent ARR calculations help improve investor and stakeholder confidence in a SaaS company’s financial position and growth trajectory.
Pattern Recognition
Discern’s analytics identify the products and customer segments with the best retention rates, informing strategic decisions around product development and customer acquisition.
Operational Efficiency
Discern’s automated calculations eliminate the error-prone spreadsheets that take weeks out of every month to manage, freeing up time for higher-value work.
Alignment
Discern consolidates all financial and customer data into a single source, ensuring the entire team is aligned on the same uniform metrics.
Mastering Complex ARR
Multiple Integration Options
Unify CRM and Billing Data in a Single Solution
Discern seamlessly integrates with your existing CRM, billing, and operational systems to consolidate all customer and revenue data in one centralized platform.
Custom Rules Application
Address Even the Weirdest Edge Cases
Discern’s data science team works closely with you to define and code even the most complex subscription scenarios and billing rules into the platform.
FX Conversions
Handle ARR for Your Global Customer Base
Discern can automatically apply your custom currency conversion rules to ARR, and even highlight changes driven by FX fluctuations versus actual product usage or subscription changes.
ARR Snapshots
Discern Milestones Your ARR
Discern tracks and stores ARR calculations at multiple points in time, enabling you to view historical snapshots and understand how changes in customer status, renewals, and other factors have impacted the overall revenue picture.
Segmentation Analysis
Slice and Dice Your Customer Base
Discern’s segmentation capabilities allow you to analyze ARR, churn, and other critical metrics across any combination of customer attributes, products, or other dimensions relevant to your business.
Discern FAQs
Calculating ARR is no simple feat, but we have lots of experience handling some of the most complex scenarios.
Discern is able offer MRR and ARR automation by delivering a blended approach of ARR expertise and flexible technology.
During implementation, we work with you to define all subscription scenarios and ARR accounting rules.
Then, we set up integration to your revenue system of record, whether that’s your ERP, Billing System or CRM and code rules to support each scenario. We can incorporate multiple data sources to tie subscriptions to opportunities to invoices.
After the data starts flowing, we work with you to reconcile the data and set up additional rules and logic as needed.
Yes, in addition to your ARR / MRR calculations and retention or revenue growth rate metrics, Discern can also calculate key metrics like CARR. We do this by including revenue for an annual contract that have been signed but the subscription start date has not yet begun. This way, you can get an even more holistic view into your existing customers.
We sure do. Firstly, Discern captures ARR / MRR on a daily basis so you can see metrics for any point in time. We can also snapshot your ARR so as changes to accounting logic or restatements occur, you can see what was previously reporting.
Discern works with many global companies and know the impact conversion rates can have on revenue numbers. Because the platform is so flexible, we can handle conversion rates any way you want, but here are a few common options for a subscription business:
- Constant Currency Method: Use the exchange rate from the contract’s start. This provides stability in ARR reporting by isolating business performance from currency fluctuations.
- Regular Update Method: Apply current exchange rates to all contracts periodically. This reflects the most current valuation of ARR but can introduce volatility in reporting.
- Hybrid Approach: Use constant currency for ongoing contracts and current rates for new or renewed contracts. This balances stability for existing contracts with accurate valuation for new business.
- Separate Reporting: Report ARR in both local currency and converted currency, offering transparency and allowing stakeholders to see both native performance and global valuation.
- Exchange Rate Impact Isolation: Create a separate line item in ARR waterfall charts for FX impact, clearly distinguishing between business-driven changes and currency-driven changes in ARR.
Pricing varies based on customer size (annual revenue and number of customer accounts) but starts at an annual subscription of $10,000 per year. We also have a one time implementation fee that includes our consulting, integration, mapping and reconciliation work.
Book a meeting so we can learn more about your SaaS company and provide an accurate quote.
Aaron Kennedy
VP of Operations, ScalePad
Want to save time calculating ARR during your monthly close?
Book a meeting with our team to discuss your unique subscription scenarios and explore how Discern can help.