BYU Student Author: @Jacob_Dutton
Reviewers: @Andrew_Wilson @Mille_K_B
Estimated Time to Solve: 15 Minutes
This Challenge was written in partnership with a real SaaS Financial Analyst. The data, scenario, or both were inspired by real- world business scenarios.
We provide the solution to this challenge using:
- Power BI
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Overview
You are a financial analyst at a growing software company. The company provides an online service for a subscription fee. A key metric in the SaaS world is annual recurring revenue (ARR). This is how much revenue each active customer generates for the company in one year. You are tasked with calculating this metric and displaying it over time in an appropriate visual.
Common SaaS (Software-as-a-Service) terms:
- ARR (Annual Recurring Revenue) – Amount of revenue that all active subscriptions would generate in 12 months.
- MRR (Monthly Recurring Revenue) – Amount of revenue that all active subscriptions would generate in 1 month.
- Churned Date – Date the subscription was canceled.
Instructions
- Load the data into PowerBI.
- Create a relationship between the two tables.
- Calculate ARR (Annual Recurring Revenue) using a DAX expression. (Put all active subscriptions into yearly terms, and sum). See “Hints” section if needed.
- Display ARR over time using an appropriate visual
- Display count of customers by zip code on a map visual (you may have to enable maps in settings). You will need to use DAX to extract the zip code from customer address.
Data Files
Suggestions and Hints
- If a subscription is monthly recurring, multiply the subscription amount by 12 to get ARR.
- Do not include churned subscriptions in your ARR calculation.
Solution
Challenge202_Solution.pbix
Solution Video: Challenge 202|POWERBI – SaaS Analysis