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0:02 so now let’s look at the next thing so 0:04 now let’s talk about our mrr Dynamics so 0:08 there’s really four categories of mrr 0:11 there’s new Revenue that you brought on 0:14 there’s churned Revenue which is 0:16 basically cancellation of accounts 0:18 there’s expansion which is upgrades of 0:20 accounts so that’s increasing the number 0:22 of seats increasing the number of usage 0:24 so paying more to basically keep using 0:26 the software and there’s contraction 0:28 which is basically people downgrading 0:31 but not churning so you need to 0:35 basically talk about the changes in our 0:37 your mrr by breaking it into these four 0:39 categories so you and investors can 0:41 really see what’s going on 0:44 okay so you should track all of these 0:48 numbers sort of on a monthly basis um 0:50 and and weekly if you’re if you’re 0:51 really early stage 0:54 so first let’s talk about the churn rate 0:55 so we’re saying that in March 0:59 um we had one cancellation and we 1:01 brought on two new accounts and by the 1:03 end of the month our total active 1:04 accounts were 33. we’re saying that the 1:07 churn rate was 3.1 percent so that’s one 1:10 cancellation and then the total active 1:13 Accounts at the end of February was 32 1:16 so the one divided by the 32 is the 3.1 1:20 percent churn rate 1:22 now in April you can see that we had one 1:25 cancellation we earned three new 1:27 accounts and so our churn rate is the 1:30 one cancellation divided by the prior 1:32 month total not the current month total 1:34 because the prior month is really the 1:36 group of customers that were eligible to 1:38 churn 1:40 so three percent churn rate 1:43 okay 1:44 now we have uh the rest of the 1:46 categories so we have our mrr from up 1:48 above monthly recurring Revenue 1:50 so one thing that’s good to look at is 1:52 your net new mrr so how much new mrr did 1:56 you bring in month over month 1:59 so I’m going to take the February number 2:01 so in February sorry in March we brought 2:05 on 2800 of net new ARR in April we 2:09 brought on 2:11 9490 of net new mrr 2:15 now for me 2:17 um this number is a little bit hard to 2:19 conceptualize so I like to actually look 2:22 at the metric as net new ARR so you just 2:26 take this number and you multiply it by 2:28 12. and so this is how much annual 2:30 recurring Revenue you brought on to the 2:33 business 2:34 so if we brought on 9500 in mrr really 2:37 we expect that we brought on four 114 2:41 000 of annualized Revenue to our 2:42 business and so that gives you a better 2:44 sense of wow you know April actually was 2:46 a really big month it it really 2:48 contributed to the the overall 2:50 performance of the business 2:52 now here you can see expansion mrr so 2:54 we’re saying that these are upgrades 2:57 so these are people that you know are 2:58 purchasing more seats etc for April and 3:01 so April a lot of expansion Revenue 5500 3:04 you know overall Revenue increase was 3:08 um 9 500 and more than 50 percent of it 3:11 came from expansion so that is really 3:13 really positive 3:14 and then contraction you have downgrades 3:16 so these are people that are downgrading 3:18 their accounts and then complete 3:20 cancellations so we lost 800 of mrr in 3:23 March 950 in April 3:26 and then the new business mrr so this is 3:29 just basically how much of that revenue 3:31 of that 9 500 3:34 um came from brand new customers 3:37 and so 3:38 basically 5200 of it was from new 3:41 customers 5500 of it was from upgrades 3:45 and then we lost 1200 from contraction 3:48 and so you can see that adds up to 94.90 3:51 and so that’s kind of the breakdown of 3:53 what happened with our mrr so you can 3:55 just copy this formula over here 3:57 and then to really compare it side by 3:59 side there’s a nice chart that a lot of 4:01 people like to make so 4:03 here’s what the chart sort of shows you 4:05 so you have your new mrr 4:08 and so this is mrr from basically you 4:10 know new business brand new accounts you 4:13 have your upgrades 4:16 um downgrades 4:19 churn 4:22 and then your overall change so that’s 4:24 your sort of net new mrr 4:27 and so a lot of businesses will show 4:29 this but over many many months they’ll 4:31 have it going back like 18 months but 4:33 they’ll show it on a chart that looks 4:36 kind of something like this 4:38 um I’m just going to do this in a basic 4:40 way just so you kind of have a sense of 4:42 what the chart generally looks like 4:45 so let’s see clustered column 4:49 cluster column yeah it usually looks 4:51 something like this 4:53 and so you’d see like 4:55 um 4:57 mrr 4:58 breakdown 5:01 and what this would show you is the line 5:03 here is sort of your overall mrr so your 5:06 new mrr was two thousand 5:11 uh 800 and then it was about 9500 5:16 and then you can see these are all the 5:17 things uh here on the positive side your 5:20 your upgrades and your new business that 5:23 increase your mrr and Below you can see 5:25 the downgrades in the churn these are 5:26 the things that decrease your mrr so 5:28 it’s good over time and you can see this 5:30 kind of big chart with this line 5:31 overlaid over on the top of it that 5:33 shows the overall change and that’s a 5:36 nice way to summarize your mrr 5:37 performance 5:39 okay so investor update so overall I 5:42 would say very strong month and I’m 5:45 onboarded three new large accounts 5:50 you can see we onboarded you know over 5:52 5000 Revenue so those are larger 5:53 accounts 5:54 drove significant 5:57 um 5:58 if it can’t expansion Revenue 6:02 and onboarded 6:06 113 885 6:10 of net new ARR 6:15 so that’s a nice metric right there 6:17 okay what else we tripled 6:21 expansion mrr month over month 6:25 so pretty much tripled it you can see 6:28 here 6:30 you know is up 2.6 x so we tripled 6:34 expansion 6:35 um 6:35 mrr month over month 6:38 um closing over 6:41 5K 6:42 in upgrades for April 6:48 and then contraction uh 6:53 let’s say 6:54 um 6:55 contraction mrr downgrades 7:00 where uh 7:02 we’re low at a mere 7:06 296 verse 335 for March and then we did 7:13 have 7:14 we we did have 7:16 One account cancellation 7:20 was a smaller account you can see we 7:22 only lost 950 dollars 7:25 driving 7:27 950 7:28 in churned mrr at a three percent churn 7:33 rate 7:35 so that should give investors a very 7:37 good sense of sort of where we’re at 7:39 with mrr