Karma (http://indiehackers.com/product/karmabot) is a subscription-based service. This comes in handy when we need to talk numbers with anyone interested in Karma's financial prospects.
We get regular notification from Stripe API, which is connected to ProfitWell. Most of the times it's about a new client, a new monthly recurring revenue (MRR) figure. Today we had a nice chat with the team on why every dollar of new MRR is important.
All ups and downs aside, today we've got $11,035 MRR and 172 paying teams. They won't disappear overnight, which means we can rely on this figure and plan the future of Karma.
This translates into $132,420 of annual recurring revenue (ARR = 12 × MRR).
On average, for the last 6 months, Karma's been growing 12% (MoM growth). If such (moderate by VC terms) growth continues, we reliably get to $515,905 ARR by the end of 2020.
$11,035 is likely to become $11,035 × 1.12 = $12,359 in about a month from now and so on. Extrapolate that for the rest of the year 2020.
MRR | ARR = MRR × 12
The extra $90 you see on the screenshot attached is actually an equivalent of extra $4,208 in ARR in a year from now.
As a founder, I see +$90 (🌱) and I think: good, +$4k more (🌳).
I can even go one step further and speculate that the company's value, which can be based on the ARR × 10), has just become $42k higher, slightly above $5.15m.
I'm relatively new to all this, please feel free to correct me on any of the above. Thanks! 🙏