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Stripe Data vs. Open‐Source Alternatives: A MRR Example

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Re: Stripe Data vs. Open‐Source Alternatives: A MRR Example

#71

Post by jjeaff »

bastawhiz wrote: post #56

There's no formal definition of MRR. Do you count transactions refunded as fraud after the fact? What about transactions that were partially refunded by your support team? What month do transactions that take more than one day to settle fall in? Of course that needs to be timezone-adjusted as well. What about the case where recurring transactions fall on the 30th and 31st of each month? They'll be processed on the la…

I don't think it's quite so subjective. At least, the edge cases you bring up would not significantly affect your metrics no matter how you handled them. MRR is a metric used for strategic planning and evaluation, it doesn't have to be exact, it's not going on your tax submissions.

You usually track MRR based on users who are currently paying for your service (summing recurring subscription amounts, as you put it). Whether their payment falls at the end of the month or is delayed a day to the next month doesn't affect MRR. Most subscriptions must be paid before the billing period begins.

Things like cancellations or chargebacks are counted separately and would not affect past MRR calculations. No you never count free trials. Yes, you count people who have a credit or balance assuming they overpaid to get that balance. If it was just given as a comp, then no.

Yes, you count people who are set to expire until they actually expire and don't renew.

Re: Stripe Data vs. Open‐Source Alternatives: A MRR Example

#72

Post by jjeaff »

Zenzero wrote: post #62
bastawhiz wrote: post #56

There's no formal definition of MRR. Do you count transactions refunded as fraud after the fact? What about transactions that were partially refunded by your support team? What month do transactions that take more than one day to settle fall in? Of course that needs to be timezone-adjusted as well. What about the case where recurring transactions fall on the 30th and 31st of each month? They'll be processed on the la…

Much of this would be solved if you specified whether you used cash or accrual basis

Regardless of how you do your accounting, MRR is always an accrual basis. Someone who pays $10 monthly increases your MRR by $10. Someone else who pays $100 annually increases your MRR by $100/12.

Re: Stripe Data vs. Open‐Source Alternatives: A MRR Example

#73

Post by benmcredmond »

asdfqwertzxcv wrote: post #63
benmcredmond wrote: post #39

If this is something you're struggling with... It's one of the core use-cases we're solving for at Equals ( https://equals.com ). We sync your Stripe data to a data warehouse and give you an MRR by customer by day table. You can use this table in our data connected spreadsheet to report on your business.

Would equals be simple enough for a staff member with limited accounting and tech background who has been putting simple revenue, churn, product trend reports together by hand using our stripe data? If so, how can we reach out to schedule a meeting to discuss?

Sorry, just seeing this. Yes, we can definitely help. Lots of customers with a background like that. Send me a mail ben@equals.com and we can set something up.

Re: Stripe Data vs. Open‐Source Alternatives: A MRR Example

#75

Post by Palmik »

jjeaff wrote: post #70
chucky123 wrote: post #29

Earlier quoted context omitted.

Exactly, Lago seems like its riding the open source wave. Nobody reasonable is going to self host this.

I see no reason why one wouldn't self host this. Subscription and billing data is such a crucial part of any business, I'm surprised more don't handle it internally.

Because to self host it, you'd need to ensure you're PCI compliant. That works for established companies I guess, but not so much when starting out.

Payment provider lock-in in a scary thing, when they can cancel your account at moment's notice.

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