Impact of Subscription Trial Periods on Monthly Recurring Revenue (MRR) in Billing

Question

How do subscriptions in a trial period affect my Monthly Recurring Revenue (MRR) calculation in Billing?

Answer

Any subscription still in a trialing status does not count towards your Monthly Recurring Revenue (MRR), as the subscription is not active and there is no predictable revenue for that subscriber.

If a subscription transitions from trialing to active, the subscription will then count towards your MRR even if the first invoice is unpaid. Eventually, if the subscription is cancelled or marked unpaid due to the unpaid invoice, the subscription will no longer count towards your MRR. If this customer has no other active subscriptions, it will also count towards your churn.