Our checkouts are heavily optimised for conversion. Swiftly pushing the customer through the checkout process, collecting only the required data to process their order.

In some circumstances, you’ll want to collect additional information from your users during the checkout process. For example, company name, full address, and more.

If you wish to collect and store additional data during the checkout prcoess, we suggest you collect it ahead of invoking the Paddle checkout in a basic user interface designed by your team. You can then take advantage of the “passthrough” technology (documented in our checkout docs) to associate this additional data with an order.

For help with collecting additional customer data with the checkout, don’t hesitate to contact a member of the team here.

Yes. In order to integrate your checkout with GA, please see this page. If you have any additional questions regarding this, please get in touch with a member of the team.

The Billing charts in Paddle’s platform are designed to give you real-time, accurate data on your revenue and transactions. Below we explain how this is all calculated, so you know which variables are included and which aren’t.

Revenue

The Revenue chart shows, for the selected time period, earned money from completed transactions. This means adding your ‘earnings’ from:

• Completed subscription payments
• One-off transactions
• B2B Invoicing paid invoices
• Recovered checkouts which complete and pay
• Affiliate revenue (where you are an affiliate through Paddle for another software company and have referred traffic to them that transacts)

The ‘earnings’ for each of these means that from the gross amount Paddle receives, we deduct any fees, taxes and charges applicable. Then we sum all of this to reach your total Revenue for the period.

Note that this means the number does not account for any balance adjustments that take place such as refunds or chargebacks.

Also, because we’re only looking at paid transactions, this number doesn’t include trialling or free subscriptions or unpaid/overdue B2B invoices.

Transactions

This is the total count of transactions and paid B2B invoices for the selected time period.

Again this excludes trialling subscriptions, free subscriptions, and unpaid/overdue B2B invoices. It basically counts the same transactions used in the Revenue number, above.

Average Transaction

This is essentially the Revenue number divided by the Transactions figure.

In order words, we take all the Revenue you have received within the period divided by the total count of Transactions for the same period to give the average value of your transactions.

Refunds

Finally, Refunds is the total amount from your balance that has been returned to the buyers.

This is actually different from the amount sent back to buyers. For example, because your revenue is already post- fees and taxes being deducted, the amount we take from your balance (the net ‘earnings’) is still just a portion of the total (often original payment amount) which is returned to the buyer.

Note that this does not include chargebacks, so if you receive chargebacks they will not be taken into account in this figure.

Monthly Recurring Revenue, commonly known as MRR, is a way of measuring predictable revenue streams from your subscriptions. It tells you, at any given point of time, how much recurring revenue your business can expect to earn in a month.

We take the revenue generated from all of your customers and convert it into a monthly format. Each time a new customer subscribes they will be added to the cumulative total. In addition to the new recurring revenue, we also consider

• MRR Churn - If a customer churns their monthly revenue will be deducted from your MRR.
• MRR Expansion - If a customer upgrades, changes plan, or has their monthly bill increased, the difference will be added to your MRR.
• MRR Contraction - If a customer downgrades, changes plan, or has their monthly bill decreased, the difference will be subtracted from your MRR.
• In addition to above, following items are also considered in calculating the MRR:
• Tax and Paddle’s fees
• Any foreign-currency subscriptions are converted into your primary currency at current exchange rates.

We do not consider following items in calculating your MRR: - One-time payments and metered charges - Free trials - Discounts and coupons applied - We use the underlying subscription price to calculate the MRR, and not the discounted or reduced price of the subscription if a discount or coupon has been applied.

MRR for the day is calculated at 6am UTC everyday.

What does the MRR calculation look like?

The most important thing to note about MRR, is that the billed value of all subscriptions - whether you’re selling on daily, weekly, monthly or annual billing cycles - is converted into their monthly equivalent. We do this in the following way:

• If the subscription is billed daily - we divide the invoice charge by the plan length and multiply by 30.
• If the subscriptions is billed weekly - we divide the invoice charge by the plan length and multiply by 4.33.
• If the subscription is billed monthly - we divide the invoice charge by the plan length.
• If the subscription is billed annually - we divide the invoice charge by the plan length and divide by 12.

For monthly subscriptions, we use the actual value charged, as there is no need to convert this further.

What should I be looking for in my MRR?

Subscription businesses generally treat MRR as one of their key KPIs, and as an excellent indicator of business health. It’s a great metric to prompt questions, and identify plans, products or customer cohorts which may need a little more attention in order to keep them happy and growing.

Some of the main questions which are answered by MRR include:

• How much revenue can I expect to make every month?
• Is my subscription business growing?

If you have questions about MRR, or would like to know more about getting the most from your subscriptions, get in touch with our team.