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Recurring revenue churn
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FY20FY21FY22FY23Comments
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Open12801,5701,7401,880Opening RR in FY20 is the same as total RR recurring revenue recognised in FY19 calendar year
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New Customers: New RR230210170310
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Existing Customers: RR Growth130180130220
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Existing Customers: RR Shrinkage-40-90-110-50
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Existing Customers: RR Lost-30-130-50-70
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Close1,5701,7401,8802,290Closing RR in FY20 is the same as total RR revenue recognised for FY20 calendar year
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Net revenue churn5%-3%-2%5%
Growth from existing customers - lost customers - customer shrinkage / opening RR. Note that this does NOT include RR from brand new customers.
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Net revenue retention105%97%98%105%
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Gross revenue churn-5%-14%-9%-6%Includes a) customers completely churned and b) shrinkage from existing customers
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Gross revenue retention95%86%91%94%
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Customer churn
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FY19FY20FY21FY22
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Open165 173 175 177
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New customers20 27 21 16
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Existing Customers: Growth121 114 115 115
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Existing Customers: Shrinkage21 23 20 17
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Existing Customers: Lost12 25 19 22
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Close173 175 177 171
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Gross customer churn7%14%11%12%
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Notes:
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There is no concept of "Net customer churn" as an existing customer either churns or doesn't churn. Customers who are contracting in their revenue doesn't count as churn.
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Scenarios
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RR Lost - 2 scenarios
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1) Customer stopped contract in Year X e.g. we lost them on 1 Oct 2023
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2) Customer customer contract in Year X+1 e.g. we lost them on 1 July 2024
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RR Shrinkage
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3) Customer downgraded on 1 July 2024 from £120 ARR to £80
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Example
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XX+1Lost/Shrinkage
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RR LostS1900-90
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RR LostS212060-60
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RR ShrinkageS3120100-20
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Customer lost is defined by customers that were with you DURING the Year X but were not with you AT A POINT IN TIME WHICH IS AT THE END OF X+1
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