Why are my metrics in ProfitWell different than Chargify?
ProfitWell has partnered with Chargify to provide its users with deep insights into their financial metrics. That said - there are few differences in the methodologies around calculating these metrics.
Cancellations and Churn:
- ProfitWell: When a customer cancels their subscription, we recognize the MRR of a customer until the end of their billing cycle. More on that here.
- Chargify: The MRR of a subscription is removed at the time of cancellation.
New business and Churn in the same month:
- ProfitWell: When a customer signs up and churns in the same calendar month, we ignore them from your metrics entirely —to not inflate new + churn.
- Chargify: This revenue is factored into both new MRR and Churn.
Subscriptions on hold:
- ProfitWell: When a customer has a subscription that is on hold, we downgrade them to $0 in MRR.
- Chargify: The subscription continues to impact MRR as is.
- ProfitWell: If a customer churns and comes back within any period in time, they will be marked as a reactivation.
- Chargify: If a customer churns and comes back within 90 days, it will count as a reactivation. After that, it's new.
- ProfitWell: We roll all recurring metered billing into MRR.
- Chargify: It's a separate category of revenue.