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Unlocking Insights: Understanding Recurring Revenue (ARR) and Monthly Recurring Revenue (MRR) in NetSuite 2026.1

Explore how to effectively analyze ARR and MRR in NetSuite 2026.1 to drive financial growth and improve subscription strategies.

·2026.1 — 2026.1 Release Notes·From NetSuite Release Notes PDF

Recurring revenue is a critical metric for businesses relying on subscription models. In NetSuite 2026.1, SuiteAnalytics offers advanced tools to help you analyze and report on two major recurring revenue metrics: Annual Recurring Revenue (ARR) and Monthly Recurring Revenue (MRR). By understanding how to leverage these metrics, organizations can better manage their financial forecasts and measure subscription-related performance.

Understanding ARR and MRR

Annual Recurring Revenue (ARR) is the total recurring revenue generated from customers on an annual basis, while Monthly Recurring Revenue (MRR) expresses this figure on a monthly scale. Both metrics are essential in evaluating the health of subscription businesses. They provide insights into revenue trends, customer retention, and churn rates.

Utilizing the Recurring Revenue Bridge Chart

In NetSuite 2026.1, the recurring revenue bridge chart provides a visual representation of ARR and MRR, breaking down results by impact categories such as:

  • New Revenue: Income from newly acquired customers.
  • Upsell Revenue: Increased revenue from existing customers through upgrades or add-ons.
  • Downsell Revenue: Revenue loss attributed to customers downgrading their subscriptions.
  • Churn: Revenue lost when customers cancel their subscriptions.

Accessing the Chart

To access the recurring revenue bridge chart, navigate to:

Subscription Metrics > Revenue Metrics > View
This interface allows you to filter results by time period, impact category, or subcategory, enabling a tailored analysis that meets your reporting needs.

Best Practices for Reporting on ARR and MRR

To maximize the benefits of the recurring revenue metrics in NetSuite, consider the following best practices:

  • Regularly Update Filters: Adjust time periods and impact categories to capture the most relevant insights for your current business context.

  • Monitor Churn: Keep a close eye on churn rates as they play a significant role in your overall revenue health.

  • Combine Metrics for Deeper Insight: Use ARR and MRR alongside other performance indicators, such as customer acquisition costs (CAC), to gain comprehensive insights into your business’s financial performance.

  • Share Insights with Stakeholders: Regularly report your findings and trends derived from these metrics to relevant stakeholders to facilitate informed decision-making.

Conclusion

Incorporating ARR and MRR into your financial analysis framework is essential for subscription-based businesses. With the tools provided in NetSuite 2026.1, organizations can strategically address revenue-related challenges, enhance customer satisfaction, and drive growth.

Key Takeaways:

  • Understand the metrics: Know the differences and implications of ARR and MRR.
  • Utilize the chart: Access the recurring revenue bridge chart for clear visual insights.
  • Filter wisely: Tailor your data views by adjusting time periods and categories.
  • Focus on churn: Regularly analyze churn to maintain overall revenue health.
  • Communicate findings: Ensure insights from data are shared with stakeholders for collaborative growth decisions.
Source: Recurring Revenue (ARR) and Monthly Recurring Revenue (MRR). — NetSuite Release Notes PDF. This article was generated from official Oracle documentation and enriched with additional context and best practices.