The document outlines the fundamentals of Zuora reporting metrics tailored for the subscription economy, focusing on key performance indicators such as bookings, billings, cash, and revenue recognition. It emphasizes the unique aspects of reporting in subscription models and the importance of analyzing customer relationships throughout their lifecycle. The presentation also showcases the Zuora report builder and provides insights into effectively managing and sharing subscription-related reports.

2. The Basics of Zuora Reporting
Metrics for the Subscription Economy and How to Report on Them
Kamini Kumar
Sr. Instructional Designer
Zuora University

3. welcome
message
page
03
Senior Instructional
Designer
Kamini Kumar

4. presentation
agenda
page
04
Overview Why Metrics are
Different in the
Subscription
Business
Demo Metrics for
Bookings,
Billings, Cash,
Revenue
Managing
and
Sharing
Reports

5. objectives
page
05
Describe how bookings, billings, collections, and
revenue recognition are different in a subscription
economy
Demonstrate how to work with Zuora Report Builder
Review some common out-of the-box and
customizable reports in Zuora
Discuss what metrics are commonly used for
understanding bookings, billings, cash, and
revenue

6. Zuora helps you manage your prospect-to-cash
operations
Quoting
Configuration,
Guided Selling,
Rules Engine
Pricing &
Packaging
Pricing, Bundling,
Entitlements
Subscriber
Management
Cross-sells,
upsells, renewals,
360 Sync, Self-
Service
Billing
Rating, Invoicing,
Taxation
Payments
Online payments,
Offline payments,
Credits,
Adjustments
Revenue
Revenue
recognition,
Accounting Close,
GL Integration
Platform
Integration, Scalability, Reliability, Security, Compliance, Extensibility, App Marketplace
Analytics
Sub. Identity,
Report Builder,
Dashboards,
Segmentation,
Triggers
Zuora analytics can help you optimize your subscription
business

7. page
07
• Success in existing customer relationships is
critical for the best long-run business
outcomes
• Analysis must incorporate the full customer
lifecycle
• We need traditional GAAP metrics but also
need leading indicators of customer health
why?
why is reporting on subscription business different?

8. page
08
“Where I’m Headed”
Non-GAAP
Accounts Receivable
Cash
Revenue
Deferred Revenue
New customer growth rate
Annual Recurring Revenue (ARR)
Bookings (MRR)
Churn
Net Retention
Customer Lifetime Value (CLTV)
Average Revenue Per User
(ARPU)
“Where I’ve
Been”
GAAP
we need more than GAAP metrics alone
to capture the relationship

9. customer outcomes drive business outcomes
page
09
3 years of MRR
growth
98% net retention
3 years of MRR
growth
102% net retention

10. page
010
Zuora
report builder
Watch the
Demo!

11. understanding your business health
requires at least four lenses
page
011
1. What are the terms of your customers’
subscriptions and orders?
2. How are customers’ relationships
growing or changing over time?
3. How does actual utilization translate
into the amount you are invoicing?
4. Of what you invoice, how much are
you able to collect in cash and how
quickly?
5. What revenue are you ultimately
able to recognize?
Bookings
01
Billings
02
Cash
03
Revenue
04

12. bookings
What is the agreement between you and your
customers?
How are your relationships growing or contracted over
time and what is driving that?
How is that different for different groups of customers?
Bookings reflect how your customer relationships are evolving

13. important metrics
for bookings
page
013
MRR at a point in time
What is the monthly recurring revenue today, or at
any other point in time, and how has that
changed?
Contracted MRR changes
What is the change in CMRR from new business,
expansion, contraction or churn ?
Contracted MRR
What is the contracted MRR in the latest version of
our agreement with our customer?

14. page
014
Pricing information lives here to
accommodate flexible tiered or
volume pricing models
Critical information about charge
quantities, billing period,
recognition model, MRR, change
in MRR, and TCV lives here
Subscription status, terms, and
start and end dates lives here
how does Zuora data help you understand bookings metrics?

15. page
015
Watch the
Demo!
1 create a custom
report
2 find MRR at any
point in time
group by account,
product, or type
3
4 save and run report
bookings metrics
in Zuora report
builder

16. billing
s
When and at what frequency are you invoicing?
How does amount billed reflect customer usage
of your service?
billing metrics describe how you are actually
charging customers

17. important metrics
for billings
page
017
Usage quantity over time
How much are customers using the service
provided?
Total invoiced amount
What is the total billed amount by type of
business?
Rated or billed usage
Once rated is factored in, what is the amount that
has been or will be billed based on given usage
levels?

18. cash
collections
Cash collection reflects how effectively you are collecting
against your invoices
If you are a B2C business, how well are you managing
payment failures and avoiding involuntary churn?
If you are a B2B business, how effectively are you managing
payment terms and following up on open invoices?
cash collection reflects how effectively you are
collecting against your invoices

19. Important metrics
for cash collection
page
019
Invoice aging
How much of your collectible invoice amount is
current and how much is overdue by 30, 60, or 90
days?
Total payments collected
What is the total amount of cash collected in each
period? How does this compare with the amount
due?
Payment successes and failures
What portion of your electronic payments succeed
and what portion fail? How effective are efforts at
recovery?

20. revenue
finally, you must understand how you
can recognize revenue over time

21. important metrics
for revenue
page
021
Recognized revenue
How much revenue will be recognized in each accounting
period?
Deferred revenue
How much deferred revenue was or will be
on the books at a given point in time?

22. page
022
Watch the
Demo!
Managing and
Sharing Reports

23. questions
page
023

24. thank you.