profitable 0.1.0 → 0.2.1

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data/CHANGELOG.md

@@ -1,5 +1,14 @@
-## [Unreleased]
+# `profitable`
+
+## [0.2.1] - 2024-08-31
+
+- Add syntactic sugar for `estimated_valuation(at: "3x")`
+- Now `estimated_valuation` also supports `Numeric`-only inputs like `estimated_valuation(3)`, so that @pretzelhands can avoid writing 3 extra characters and we embrace actual syntactic sugar instead of "syntactic saccharine" (sic.)
+
+## [0.2.0] - 2024-08-31
+
+- Initial production ready release
 
 ## [0.1.0] - 2024-08-29
 
-- Initial release
+- Initial test release (not production ready)

data/README.md

@@ -52,27 +52,34 @@ All methods return numbers that can be converted to a nicely-formatted, human-re
 - `Profitable.mrr`: Monthly Recurring Revenue (MRR)
 - `Profitable.arr`: Annual Recurring Revenue (ARR)
 - `Profitable.all_time_revenue`: Total revenue since launch
+- `Profitable.revenue_in_period(in_the_last: 30.days)`: Total revenue (recurring and non-recurring) in the specified period
+- `Profitable.recurring_revenue_in_period(in_the_last: 30.days)`: Only recurring revenue in the specified period
+- `Profitable.recurring_revenue_percentage(in_the_last: 30.days)`: Percentage of revenue that is recurring in the specified period
 - `Profitable.new_mrr(in_the_last: 30.days)`: New MRR added in the specified period
 - `Profitable.churned_mrr(in_the_last: 30.days)`: MRR lost due to churn in the specified period
 - `Profitable.average_revenue_per_customer`: Average revenue per customer (ARPC)
 - `Profitable.lifetime_value`: Estimated customer lifetime value (LTV)
+- `Profitable.estimated_valuation(at: "3x")`: Estimated company valuation based on ARR
 
 ### Customer metrics
 
-- `Profitable.total_customers`: Total number of customers
-- `Profitable.total_subscribers`: Total number of active subscribers
-- `Profitable.new_customers(in_the_last: 30.days)`: Number of new customers (both subscribers and non-subscribers) added in the specified period
+- `Profitable.total_customers`: Total number of customers who have ever made a purchase or had a subscription (current and past)
+- `Profitable.total_subscribers`: Total number of customers who have ever had a subscription (active or not)
+- `Profitable.active_subscribers`: Number of customers with currently active subscriptions
+- `Profitable.new_customers(in_the_last: 30.days)`: Number of new customers added in the specified period
 - `Profitable.new_subscribers(in_the_last: 30.days)`: Number of new subscribers added in the specified period
 - `Profitable.churned_customers(in_the_last: 30.days)`: Number of customers who churned in the specified period
 
 ### Other metrics
 
-- `Profitable.churn(in_the_last: 30.days)`: Churn rate as a percentage
-- `Profitable.estimated_valuation(multiplier = "3x")`: Estimated valuation based on ARR
+- `Profitable.churn(in_the_last: 30.days)`: Churn rate for the specified period
+- `Profitable.mrr_growth_rate(in_the_last: 30.days)`: MRR growth rate for the specified period
+- `Profitable.time_to_next_mrr_milestone`: Estimated time to reach the next MRR milestone
 
 ### Growth metrics
 
-- `Profitable.mrr_growth_rate(period: 30.days)`: Calculates the MRR growth rate over the specified period
+- `Profitable.mrr_growth(in_the_last: 30.days)`: Calculates the absolute MRR growth over the specified period
+- `Profitable.mrr_growth_rate(in_the_last: 30.days)`: Calculates the MRR growth rate (as a percentage) over the specified period
 
 ### Milestone metrics
 
@@ -94,7 +101,10 @@ Profitable.churn(in_the_last: 3.months).to_readable # => "12%"
 Profitable.new_mrr(in_the_last: 24.hours).to_readable(2) # => "$123.45"
 
 # Get the estimated valuation at 5x ARR
-Profitable.estimated_valuation("5x").to_readable # => "$500,000"
+Profitable.estimated_valuation(at: "5x").to_readable # => "$500,000"
+
+# You can also pass the multiplier as a number, and/or ignore the "at:" keyword altogether
+Profitable.estimated_valuation(4.5).to_readable # => "$450,000"
 
 # Get the time to next MRR milestone
 Profitable.time_to_next_mrr_milestone.to_readable  # => "26 days left to $10,000 MRR"
@@ -121,24 +131,6 @@ Profitable.mrr # => 123456
 - `mrr_growth_rate`: This calculation compares the MRR at the start and end of the specified period. It assumes a linear growth rate over the period, which may not reflect short-term fluctuations. For more accurate results, consider using shorter periods or implementing a more sophisticated growth calculation method if needed.
 - `time_to_next_mrr_milestone`: This estimation is based on the current MRR and the recent growth rate. It assumes a constant growth rate, which may not reflect real-world conditions. The calculation may be inaccurate for very new businesses or those with irregular growth patterns.
 
-## Mount the `/profitable` dashboard
-
-We also provide a simple dashboard with good defaults to see your main business metrics.
-
-In your `config/routes.rb` file, mount the `profitable` engine:
-```ruby
-mount Profitable::Engine => '/profitable'
-```
-
-It's a good idea to make sure you're adding some sort of authentication to the `/profitable` route to avoid exposing sensitive information:
-```ruby
-authenticate :user, ->(user) { user.admin? } do
-  mount Profitable::Engine => '/profitable'
-end
-```
-
-You can now navigate to `/profitable` to see your app's business metrics like MRR, ARR, churn, etc.
-
 ## Development
 
 After checking out the repo, run `bin/setup` to install dependencies. Then, run `rake spec` to run the tests. You can also run `bin/console` for an interactive prompt that will allow you to experiment.
@@ -146,15 +138,16 @@ After checking out the repo, run `bin/setup` to install dependencies. Then, run
 To install this gem onto your local machine, run `bundle exec rake install`.
 
 ## TODO
+- [ ] Calculate split by plan / add support for multiple plans (churn by plan, MRR by plan, etc) – not just aggregated
+- [ ] Calculate MRR expansion (plan upgrades), contraction (plan downgrades), etc. like Stripe does
 - [ ] Add active customers (not just total customers)
-- [ ] Add revenue last month to dashboard
-- [ ] Add % of change over last period
-- [ ] Support other currencies other than USD
-- [ ] Support for multiple plans (churn by plan, MRR by plan, etc)
-- [ ] Make sure other payment processors other than Stripe work as intended
-- [ ] Account for subscription upgrades/downgrades within a period
+- [ ] Add % of change over last period (this period vs last period)
+- [ ] Calculate total period revenue vs period recurring revenue (started, but not sure if accurate)
+- [ ] Add revenue last month to dashboard (not just past 30d, like previous month)
+- [ ] Support other currencies other than USD (convert currencies)
+- [ ] Make sure other payment processors other than Stripe work as intended (Paddle, Braintree, etc. – I've never used them)
 - [ ] Add a way to input monthly costs (maybe via config file?) so that we can calculate a profit margin %
-- [ ] Allow dashboard configuration via config file
+- [ ] Allow dashboard configuration via config file (which metrics to show, etc.)
 - [ ] Return a JSON in the dashboard endpoint with main metrics (for monitoring / downstream consumption)
 
 ## Contributing

data/app/views/profitable/dashboard/index.html.erb

@@ -88,6 +88,7 @@
         <h2><%= Profitable.churn(in_the_last: period).to_readable %></h2>
         <p>churn (<%= period_short %>)</p>
       </div>
+
       <div class="card">
         <h2><%= Profitable.new_mrr(in_the_last: period).to_readable %></h2>
         <p>new MRR (<%= period_short %>)</p>
@@ -96,6 +97,16 @@
         <h2><%= Profitable.churned_mrr(in_the_last: period).to_readable %></h2>
         <p>churned MRR (<%= period_short %>)</p>
       </div>
+      <div class="card">
+        <h2><%= Profitable.mrr_growth(in_the_last: period).to_readable %></h2>
+        <p>MRR growth (<%= period_short %>)</p>
+      </div>
+
+      <div class="card">
+        <h2><%= Profitable.revenue_in_period(in_the_last: period).to_readable %></h2>
+        <p>total revenue (<%= period_short %>)</p>
+      </div>
+
     </div>
   <% end %>
 

data/lib/profitable/mrr_calculator.rb

@@ -17,7 +17,7 @@ module Profitable
 
       subscriptions.find_each do |subscription|
         mrr = process_subscription(subscription)
-        total_mrr += mrr
+        total_mrr += mrr if mrr.is_a?(Numeric) && mrr > 0
       end
 
       total_mrr
@@ -30,7 +30,10 @@ module Profitable
       return 0 if subscription.nil? || subscription.data.nil?
 
       processor_class = processor_for(subscription.customer_processor)
-      processor_class.new(subscription).calculate_mrr
+      mrr = processor_class.new(subscription).calculate_mrr
+
+      # Ensure MRR is a non-negative number
+      mrr.is_a?(Numeric) ? [mrr, 0].max : 0
     rescue => e
       Rails.logger.error("Error calculating MRR for subscription #{subscription.id}: #{e.message}")
       0

data/lib/profitable/version.rb

@@ -1,5 +1,5 @@
 # frozen_string_literal: true
 
 module Profitable
-  VERSION = "0.1.0"
+  VERSION = "0.2.1"
 end

data/lib/profitable.rb

@@ -34,29 +34,41 @@ module Profitable
       NumericResult.new(calculate_all_time_revenue)
     end
 
-    def estimated_valuation(multiplier = "3x")
-      NumericResult.new(calculate_estimated_valuation(multiplier))
+    def revenue_in_period(in_the_last: DEFAULT_PERIOD)
+      NumericResult.new(calculate_revenue_in_period(in_the_last))
+    end
+
+    def recurring_revenue_in_period(in_the_last: DEFAULT_PERIOD)
+      NumericResult.new(calculate_recurring_revenue_in_period(in_the_last))
+    end
+
+    def recurring_revenue_percentage(in_the_last: DEFAULT_PERIOD)
+      NumericResult.new(calculate_recurring_revenue_percentage(in_the_last), :percentage)
+    end
+
+    def estimated_valuation(multiplier = 3, at: nil)
+      actual_multiplier = at || multiplier
+      NumericResult.new(calculate_estimated_valuation(actual_multiplier))
     end
 
     def total_customers
-      NumericResult.new(Pay::Customer.count, :integer)
+      NumericResult.new(calculate_total_customers, :integer)
     end
 
     def total_subscribers
-      NumericResult.new(Pay::Subscription.active.distinct.count('customer_id'), :integer)
+      NumericResult.new(calculate_total_subscribers, :integer)
+    end
+
+    def active_subscribers
+      NumericResult.new(calculate_active_subscribers, :integer)
     end
 
     def new_customers(in_the_last: DEFAULT_PERIOD)
-      NumericResult.new(Pay::Customer.where(created_at: in_the_last.ago..Time.current).count, :integer)
+      NumericResult.new(calculate_new_customers(in_the_last), :integer)
     end
 
     def new_subscribers(in_the_last: DEFAULT_PERIOD)
-      NumericResult.new(
-        Pay::Subscription.active
-          .where(pay_subscriptions: { created_at: in_the_last.ago..Time.current })
-          .distinct.count('pay_customers.id'),
-        :integer
-      )
+      NumericResult.new(calculate_new_subscribers(in_the_last), :integer)
     end
 
     def churned_customers(in_the_last: DEFAULT_PERIOD)
@@ -79,6 +91,10 @@ module Profitable
       NumericResult.new(calculate_lifetime_value)
     end
 
+    def mrr_growth(in_the_last: DEFAULT_PERIOD)
+      NumericResult.new(calculate_mrr_growth(in_the_last))
+    end
+
     def mrr_growth_rate(in_the_last: DEFAULT_PERIOD)
       NumericResult.new(calculate_mrr_growth_rate(in_the_last), :percentage)
     end
@@ -99,19 +115,39 @@ module Profitable
 
     private
 
+    def paid_charges
+      Pay::Charge.where("(pay_charges.data ->> 'paid' IS NULL OR pay_charges.data ->> 'paid' != ?) AND pay_charges.amount > 0", 'false')
+                 .where("pay_charges.data ->> 'status' = ? OR pay_charges.data ->> 'status' IS NULL", 'succeeded')
+    end
+
     def calculate_all_time_revenue
-      Pay::Charge.sum(:amount)
+      paid_charges.sum(:amount)
     end
 
     def calculate_arr
       (mrr.to_f * 12).round
     end
 
-    def calculate_estimated_valuation(multiplier = "3x")
-      multiplier = multiplier.to_s.gsub('x', '').to_f
+    def calculate_estimated_valuation(multiplier = 3)
+      multiplier = parse_multiplier(multiplier)
       (calculate_arr * multiplier).round
     end
 
+    def parse_multiplier(input)
+      case input
+      when Numeric
+        input.to_f
+      when String
+        if input.end_with?('x')
+          input.chomp('x').to_f
+        else
+          input.to_f
+        end
+      else
+        3.0 # Default multiplier if input is invalid
+      end.clamp(0.1, 100) # Ensure multiplier is within a reasonable range
+    end
+
     def calculate_churn(period = DEFAULT_PERIOD)
       start_date = period.ago
       total_subscribers_start = Pay::Subscription.active.where('created_at < ?', start_date).distinct.count('customer_id')
@@ -122,6 +158,9 @@ module Profitable
 
     def churned_subscriptions(period = DEFAULT_PERIOD)
       Pay::Subscription
+        .includes(:customer)
+        .select('pay_subscriptions.*, pay_customers.processor as customer_processor')
+        .joins(:customer)
         .where(status: ['canceled', 'ended'])
         .where(ends_at: period.ago..Time.current)
     end
@@ -150,6 +189,59 @@ module Profitable
       end
     end
 
+    def calculate_revenue_in_period(period)
+      paid_charges.where(created_at: period.ago..Time.current).sum(:amount)
+    end
+
+    def calculate_recurring_revenue_in_period(period)
+      paid_charges
+        .joins('INNER JOIN pay_subscriptions ON pay_charges.subscription_id = pay_subscriptions.id')
+        .where(created_at: period.ago..Time.current)
+        .sum(:amount)
+    end
+
+    def calculate_recurring_revenue_percentage(period)
+      total_revenue = calculate_revenue_in_period(period)
+      recurring_revenue = calculate_recurring_revenue_in_period(period)
+
+      return 0 if total_revenue.zero?
+
+      ((recurring_revenue.to_f / total_revenue) * 100).round(2)
+    end
+
+    def calculate_total_customers
+      actual_customers.count
+    end
+
+    def calculate_total_subscribers
+      Pay::Customer.joins(:subscriptions).distinct.count
+    end
+
+    def calculate_active_subscribers
+      Pay::Customer.joins(:subscriptions)
+                   .where(pay_subscriptions: { status: 'active' })
+                   .distinct
+                   .count
+    end
+
+    def actual_customers
+      Pay::Customer.joins("LEFT JOIN pay_subscriptions ON pay_customers.id = pay_subscriptions.customer_id")
+                   .joins("LEFT JOIN pay_charges ON pay_customers.id = pay_charges.customer_id")
+                   .where("pay_subscriptions.id IS NOT NULL OR pay_charges.amount > 0")
+                   .distinct
+    end
+
+    def calculate_new_customers(period)
+      actual_customers.where(created_at: period.ago..Time.current).count
+    end
+
+    def calculate_new_subscribers(period)
+      Pay::Customer.joins(:subscriptions)
+                   .where(created_at: period.ago..Time.current)
+                   .distinct
+                   .count
+    end
+
     def calculate_average_revenue_per_customer
       return 0 if total_customers.zero?
       (all_time_revenue.to_f / total_customers).round
@@ -162,6 +254,12 @@ module Profitable
       (average_revenue_per_customer.to_f / churn_rate).round
     end
 
+    def calculate_mrr_growth(period = DEFAULT_PERIOD)
+      new_mrr = calculate_new_mrr(period)
+      churned_mrr = calculate_churned_mrr(period)
+      new_mrr - churned_mrr
+    end
+
     def calculate_mrr_growth_rate(period = DEFAULT_PERIOD)
       end_date = Time.current
       start_date = end_date - period
@@ -185,5 +283,6 @@ module Profitable
           MrrCalculator.process_subscription(subscription)
         end
     end
+
   end
 end

metadata

@@ -1,14 +1,14 @@
 --- !ruby/object:Gem::Specification
 name: profitable
 version: !ruby/object:Gem::Version
-  version: 0.1.0
+  version: 0.2.1
 platform: ruby
 authors:
 - rameerez
 autorequire:
 bindir: exe
 cert_chain: []
-date: 2024-08-30 00:00:00.000000000 Z
+date: 2024-08-31 00:00:00.000000000 Z
 dependencies:
 - !ruby/object:Gem::Dependency
   name: pay