profitable 0.2.0 → 0.2.2

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data/CHANGELOG.md

@@ -1,5 +1,16 @@
 # `profitable`
 
+## [0.2.2] - 2024-09-01
+
+- Improve MRR calculations with prorated churned and new MRR (hopefully fixes bad churned MRR calculations)
+- Only consider paid charges for all revenue calculations (hopefully fixes bad ARPC calculations)
+- Add `multiple:` parameter as another option for `estimated_valuation` (same as `at:`, just syntactic sugar)
+
+## [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

data/README.md

@@ -59,7 +59,7 @@ All methods return numbers that can be converted to a nicely-formatted, human-re
 - `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(multiplier = "3x")`: Estimated company valuation based on ARR
+- `Profitable.estimated_valuation(at: "3x")`: Estimated company valuation based on ARR
 
 ### Customer metrics
 
@@ -100,8 +100,11 @@ Profitable.churn(in_the_last: 3.months).to_readable # => "12%"
 # You can specify the precision of the output number (no decimals by default)
 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"
+# Get the estimated valuation at 5x ARR (defaults to 3x if no multiple is specified)
+Profitable.estimated_valuation(multiple: 5).to_readable # => "$500,000"
+
+# You can also pass the multiplier as a string. You can also use the `at:` keyword argument (same thing as `multiplier:`) – and/or ignore the `at:` or `multiplier:` named arguments altogether
+Profitable.estimated_valuation(at: "4.5x").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"
@@ -128,24 +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.

data/lib/profitable/version.rb

@@ -1,5 +1,5 @@
 # frozen_string_literal: true
 
 module Profitable
-  VERSION = "0.2.0"
+  VERSION = "0.2.2"
 end

data/lib/profitable.rb

@@ -16,7 +16,7 @@ module Profitable
     include ActionView::Helpers::NumberHelper
 
     DEFAULT_PERIOD = 30.days
-    MRR_MILESTONES = [100, 1_000, 10_000, 100_000, 1_000_000, 10_000_000, 100_000_000]
+    MRR_MILESTONES = [5, 10, 20, 30, 50, 75, 100, 200, 300, 400, 500, 1_000, 2_000, 3_000, 5_000, 10_000, 20_000, 30_000, 50_000, 83_333, 100_000, 250_000, 500_000, 1_000_000, 5_000_000, 10_000_000, 25_000_000, 50_000_000, 75_000_000, 100_000_000]
 
     def mrr
       NumericResult.new(MrrCalculator.calculate)
@@ -46,8 +46,9 @@ module Profitable
       NumericResult.new(calculate_recurring_revenue_percentage(in_the_last), :percentage)
     end
 
-    def estimated_valuation(multiplier = "3x")
-      NumericResult.new(calculate_estimated_valuation(multiplier))
+    def estimated_valuation(multiplier = nil, at: nil, multiple: nil)
+      actual_multiplier = multiplier || at || multiple || 3
+      NumericResult.new(calculate_estimated_valuation(actual_multiplier))
     end
 
     def total_customers
@@ -127,11 +128,26 @@ module Profitable
       (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')
@@ -154,23 +170,50 @@ module Profitable
     end
 
     def calculate_churned_mrr(period = DEFAULT_PERIOD)
-      churned_subscriptions(period).sum do |subscription|
-        MrrCalculator.process_subscription(subscription)
-      end
+      start_date = period.ago
+      end_date = Time.current
+
+      Pay::Subscription
+        .includes(:customer)
+        .select('pay_subscriptions.*, pay_customers.processor as customer_processor')
+        .joins(:customer)
+        .where(status: ['canceled', 'ended'])
+        .where('pay_subscriptions.updated_at BETWEEN ? AND ?', start_date, end_date)
+        .sum do |subscription|
+          if subscription.ends_at && subscription.ends_at > end_date
+            # Subscription ends in the future, don't count it as churned yet
+            0
+          else
+            # Calculate prorated MRR if the subscription ended within the period
+            end_date = [subscription.ends_at, end_date].compact.min
+            days_in_period = (end_date - start_date).to_i
+            total_days = (subscription.current_period_end - subscription.current_period_start).to_i
+            prorated_days = [days_in_period, total_days].min
+
+            mrr = MrrCalculator.process_subscription(subscription)
+            (mrr.to_f * prorated_days / total_days).round
+          end
+        end
     end
 
     def calculate_new_mrr(period = DEFAULT_PERIOD)
-      new_subscriptions = Pay::Subscription
+      start_date = period.ago
+      end_date = Time.current
+
+      Pay::Subscription
         .active
-        .where(pay_subscriptions: { created_at: period.ago..Time.current })
-        .where.not(status: ['trialing', 'paused'])
         .includes(:customer)
         .select('pay_subscriptions.*, pay_customers.processor as customer_processor')
         .joins(:customer)
-
-      new_subscriptions.sum do |subscription|
-        MrrCalculator.process_subscription(subscription)
-      end
+        .where(created_at: start_date..end_date)
+        .where.not(status: ['trialing', 'paused'])
+        .sum do |subscription|
+          mrr = MrrCalculator.process_subscription(subscription)
+          days_in_period = (end_date - subscription.created_at).to_i
+          total_days = (subscription.current_period_end - subscription.current_period_start).to_i
+          prorated_days = [days_in_period, total_days].min
+          (mrr.to_f * prorated_days / total_days).round
+        end
     end
 
     def calculate_revenue_in_period(period)
@@ -194,7 +237,10 @@ module Profitable
     end
 
     def calculate_total_customers
-      actual_customers.count
+      Pay::Customer.joins(:charges)
+                   .merge(paid_charges)
+                   .distinct
+                   .count
     end
 
     def calculate_total_subscribers
@@ -227,8 +273,9 @@ module Profitable
     end
 
     def calculate_average_revenue_per_customer
-      return 0 if total_customers.zero?
-      (all_time_revenue.to_f / total_customers).round
+      paying_customers = calculate_total_customers
+      return 0 if paying_customers.zero?
+      (all_time_revenue.to_f / paying_customers).round
     end
 
     def calculate_lifetime_value

metadata

@@ -1,14 +1,14 @@
 --- !ruby/object:Gem::Specification
 name: profitable
 version: !ruby/object:Gem::Version
-  version: 0.2.0
+  version: 0.2.2
 platform: ruby
 authors:
 - rameerez
 autorequire:
 bindir: exe
 cert_chain: []
-date: 2024-08-31 00:00:00.000000000 Z
+date: 2024-09-01 00:00:00.000000000 Z
 dependencies:
 - !ruby/object:Gem::Dependency
   name: pay