Discrepancies in your metrics

by Neel Desai

The numbers you see on ProfitWell may be slightly —or not so slightly— different than what you’re used to.  There’s two reasons why this happens:

  1. Differences in methodology: there’s no universally-accepted way to calculate someone’s Monthly Recurring Revenue (MRR) —and the myriad of metrics we then derive from these calculations— just best practices. And reasonably smart people can disagree about some of these.
  2. Calculating these metrics is intractably hard. Whether you’ve been getting them from an internal team or from one of our competitors, accurately determining the exact dollar amount of each of your customers subscriptions’ transitions over time gets complex quickly (just like this sentence).

Fun fact: just the part of ProfitWell that calculates your metrics is tens of thousands of lines of code, covered by thousands of automated test cases, hundreds of <what?>, under the watchful eye of tens of automated processes that are constantly looking for discrepancies on them. And we still get them right about 99.7% of the time.

In these help docs, we’ll go through some of the differences in methodology that (almost certainly) account for most of the discrepancies. If you have specific questions —or up for some wonky SaaS metrics conversation—contact us and we’ll be more than happy to oblige.


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