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Revenue Analysis Metrics for Subscriptions

Hakim from Firstory avatar
Written by Hakim from Firstory
Updated over 2 weeks ago

1. Churn Rate

Measures the percentage of subscribers who stopped their subscription within a specific period.

  • Formula: Churned Subscribers (Past 30 Days) ÷ (Active Subscribers 30 Days Ago + New Subscribers in Past 30 Days)

  • Significance: A lower churn rate indicates higher listener retention and loyalty.

2. Customer Lifetime Value (LTV)

The estimated total revenue a single subscriber will generate throughout their subscription lifespan.

  • Formula: ARPU ÷ Churn Rate

  • Note: This is an estimation based on current performance, not a prediction for a specific individual's actual subscription duration.

3. Average Revenue Per User (ARPU)

The average Monthly Recurring Revenue (MRR) generated per active subscriber.

  • Formula: Total MRR ÷ Active Subscribers

  • Significance: Reflects the revenue value of each user at the end of the selected period.

4. Subscriber Growth Metrics

  • New Subscribers: Count of users who started a paid subscription for the first time (renewals are not included).

  • Churned Subscribers: Count of users who canceled or failed to renew their subscription during the period.

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