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Reactivation MRR

Reactivation MRR is the MRR from customers who had MRR in the past, had none at the prior measurement date, and have MRR again. It separates win-backs from new business, so that acquisition is not overstated and earlier churn remains in the history.

Also called
Win-back MRR, Resurrected MRR
In Revnewed
Calculated in Revnewed

Formula

Reactivation MRR = Σ MRR at month end of customers
                   with no MRR at the prior month end
                   and MRR at some earlier month end

Worked example

Illustrative figures. Customer B churned in March and signed again in September.

CustomerHistoryMRR 31 AugMRR 30 SepMovement
Customer AFirst contract–4,000New business 4,000
Customer BChurned in March–2,500Reactivation 2,500
Customer CSince 20243,0004,200Expansion 1,200
Customer DSince 20255,0003,500Contraction (1,500)
Customer ESince 20232,000–Churn (2,000)
Customer FModule +1,000, seats −6006,0006,400Expansion 400
Total16,00020,6004,600

Reactivation MRR = 2,500

Why not new business

A returning customer was counted as new business once and as churn when it left. Counting the return as new business again double-counts acquisition.

Look-back windows

Some companies treat a customer returning after a long absence, such as more than twelve months, as new business. If a window is used, state it and apply it to every customer.

Effect on retention

In trailing twelve-month NRR, a customer in the starting cohort who churned and returned within the window is measured at its current MRR. Whether reactivations belong in NRR is a policy choice; disclose it.

How Revnewed calculates it

Reactivation applies when a customer returns after at least one month end at zero, with no look-back limit. It is never reported as new business.

NRR includes reactivated customers who had MRR twelve months earlier.

Common misstatements

Win-backs as new logos
Acquisition is overstated and the earlier churn is obscured.
Reactivation netted against churn
Netting the return against the earlier loss rewrites history and understates both movements.
Undisclosed look-back window
A window changes classification. State it in the definitions.

Close a month on your own contracts

Import customers and contract line items from CSV, review the bridge and close the month. The sample company is there to compare against while you set up.

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