MRR product waterfall

The **monthly recurring revenue (MRR) product waterfall **report provides a granular view of how different products contribute to your company's monthly recurring revenue over a specified period. This report is an essential tool for finance teams, product managers, and leadership to understand revenue trends, identify top-performing products, and accurately forecast revenue streams.

By breaking down MRR by product and over time, it helps to visualize the "waterfall" effect of how each product's contribution changes month-to-month due to new subscriptions, usage, renewals, or churn.

Understanding the report

The report is structured as a time-series table.

Columns: Each column represents a specific month in time, from August 2024 to April 2025.
Rows: Each row details a specific product or a component of a product's MRR.

Key components and definitions

The report provides a detailed breakdown of how different product types are calculated and represented in the MRR:

Loans Processed: This typically represents revenue from a transactional or usage-based product. Its value may fluctuate each month based on customer activity. In the provided example, the value for "Loans Processed" starts at 140,821.33 in August 2024 and changes to 181,217 in April 2025.
Long Subscription: This represents a standard recurring subscription with a fixed value. The example shows a consistent MRR of 1,333.33 from January 2025 onwards, indicating a stable recurring revenue stream.
Short Subscription: Similar to the long subscription, this also represents a fixed recurring revenue component. Its value remains constant at 3,000 throughout the entire period, from August 2024 to April 2025.
[All] Tokens (Prepaid with Entitlements) - Prepaid Subscription: This specific line item isolates the fixed, recurring fee associated with a prepaid subscription model that includes an initial set of tokens or entitlements. The value remains constant at 443.85 from August 2024 to April 2025, representing the recurring fee for the prepaid plan itself.
[All] Tokens (Prepaid with Entitlements) - Token Entitlements (and Overages): This row captures the variable revenue generated from the usage of tokens. This includes any overages where usage exceeds the initial entitlements. The value fluctuates, as seen with 82.95 in August 2024 and 69.66 in November 2024, reflecting the variable nature of usage-based revenue.

Technical details and use cases

The report is generated by aggregating revenue data based on Zenskar's configured products, contracts, and billing events. It provides a quick and accurate way to:

Analyze revenue contribution: Instantly see which products are the biggest drivers of MRR.
Forecast revenue: Track monthly changes to help in financial planning and forecasting.
Monitor product health: Identify growth or decline in specific product lines.
Track usage-based revenue: Clearly see how variable usage components (like "Loans Processed" or "Token Entitlements") impact the total monthly revenue.