Forward revenue, also known as projected revenue or future revenue, is the estimated amount of revenue that a subscription business expects to generate over a specified period of time in the future. This projection is based on the company’s existing customer base, their anticipated subscription renewals or upgrades, and any new customer acquisitions and other data recorded and compiled by billing and subscription management software.
Forward revenue is an important metric for subscription businesses as it provides insight into the potential growth and performance of the business over a given period of time. It allows businesses to forecast and plan for future operations, investments, and expenses.
There are several factors that can influence forward revenue for a business that uses subscription and billing management software. These include the size and growth of the customer base, the rate of customer churn, the pricing and packaging of subscription plans, and the overall market demand for the product or service.
Forward revenue can be calculated using various methods, such as revenue projections based on historical data, customer growth rates, or industry benchmarks. It is important for businesses to regularly review and update their forward revenue projections to account for changes in market conditions and other external factors that may impact revenue growth.