Track recurring revenue in HubSpot

If you manage recurring services and products in HubSpot, you can analyze and track the projected value of a deal amount over time with the revenue analytics report.

The revenue analytics tool enables you to track how much revenue you're generating or losing in a specific time range, to better understand the impact of renewals, upgrades, downgrades, and churns on revenue.

Set up recurring revenue tracking

Create recurring revenue properties

Before you can begin tracking your recurring revenue, the default recurring revenue deal properties need to be created in your HubSpot account:

• In your HubSpot account, navigate to Reporting > Reports > Sales.
• Select Sales outcomes > Revenue.
• Click Add properties and start tracking. If this option is unavailable, the properties are already created.
• In the dialog box, click Create properties.

The following recurring revenue properties will then be created in your account:

• Recurring revenue amount: the total amount of recurring revenue associated with a deal. This is a monthly value.
• Recurring revenue deal type: the deal type. The available values for this property are New business, Renewal, Upgrade, and Downgrade.
• Recurring revenue inactive date: the date when this specific amount of recurring revenue for the deal is no longer collected.
• Recurring revenue inactive reason: the reason why this specific recurring revenue amount is no longer collected. The available values are Churned, Renewal, Upgrade, and Downgrade.

Add values to recurring revenue properties

Once these properties are created, add values to these properties in your deals. The revenue analytics tool will then report the data.

Please note: the revenue analytics tool calculates new revenue, existing revenue, or lost revenue over time using the values entered in each recurring revenue property. It is not calculated using the value of the products or quotes associated with a deal. These properties need to be updated manually in order to see any data in the revenue analytics report.

To enter values in the recurring revenue properties:

• In your HubSpot account, navigate to CRM > Deals.
• Click the name of a deal.
• In the About section, click View all properties.
• In the search bar, enter recurring revenue to locate the four recurring revenue properties.
• Hover over each property and click the pencil icon edit to add values to these properties as needed based on the recurring revenue event. For example:
  • If the deal is a new business:
    • In the existing deal's Recurring revenue deal type property, select New business.
    • In the existing deal's Recurring revenue amount property, enter the total amount.
    • Click Save.
  • If the deal leads to a churn:
    • In the Recurring revenue inactive date property, select the date.
    • In the Recurring revenue inactive reason property, select Churned.
    • Click Save.
    • Please note: to exclude such churned deals from the Existing recurring revenue column in the analytics, you need to enter values in both their Recurring revenue inactive date property and the Recurring revenue inactive reason property.
  • If there is a renewal:
    • In the existing deal's Recurring revenue inactive date property, select the date.
    • In the existing deal's Recurring revenue inactive reason property, select Renewal.
    • Click Save.
    • Then, recreate the deal and set the new deal's Recurring revenue deal type to Renewal. This new deal will not appear in recurring revenue reports, but ensures that the original deal will be included in reports over time.
  • If there is a upgrade/downgrade:
    • In the existing deal's Recurring revenue inactive date property, select the date of upgrade or downgrade.
    • In the existing deal's Recurring revenue inactive reason property, select either Upgrade or Downgrade.
    • Click Save.
    • Then, recreate the deal and select Upgrade or Downgrade as the Recurring revenue deal type. Enter the updated total amount in the Recurring revenue amount field.

Please note: only deals in the Closed won deal stage are included in your revenue analytics report. A deal's Close date is the start date for revenue reporting.

Analyze your revenue with the revenue analytics tool

• In your HubSpot account, navigate to Reporting > Reports > Sales.
• Select Sales outcomes > Revenue.
• Use the Date range and Frequency dropdown menus to filter the data to a specific time range. You can forecast based off of your known revenue by selecting a date range beyond the current date. HubSpot projects future revenue based only on the revenue from known Closed won deals in the select time period.

• In the upper left, click Any pipeline to filter the data to a specific deal pipeline.
• To filter the chart data by new, existing, and lost recurring revenue, click the metric at the top of the report. Learn more about how new, existing, and lost recurring revenue is calculated.

• Hover over each month in the chart visualization to see the total new, existing, and lost recurring revenue for that particular month.
• View the table beneath the chart to see a breakdown of the total new, existing, and lost recurring revenue for each month.
• Click the value to see the deals associated to the revenue in the right panel.

Calculating recurring revenue

In the recurring revenue analytics tool, you can analyze the following metrics, which are based on the values set in the recurring revenue properties for a deal:

• • New recurring revenue: deals that are new business or upgrades count toward new recurring revenue.
  • Existing recurring revenue: deals that have been renewed count toward existing recurring revenue. 
  • Lost recurring revenue: deals that have churned, downgraded or have a value for Recurring revenue inactive datecount toward lost recurring revenue.

New, existing, and lost recurring revenue are determined by the values set in a deal's recurring revenue properties, the deal's close date, and the time period selected for the report. 

For example, a deal with a close date of 07/19/2022:

• will be included in a report that starts on 07/15/2022 as New recurring revenue.
• will be included in a report that starts on 7/22/2022 as Existing recurring revenue.

The recurring revenue report first calculates the existing revenue based on the report's start date, then adds the closed and lost revenue.

Example

Below is an example of how to expect renewed deals to appear in recurring revenue reports:

• On 1 January 2022, Deal A is closed to represent a contact's $100 subscription purchase.
• To track this recurring revenue, you set the following properties for Deal A:
  • Recurring revenue amount: $100
  • Recurring revenue deal type: New business
• If you set the recurring revenue report to start prior to the deal's close date (1 January 2022), the $100 will count toward new recurring revenue. For dates after the deal's close date, the $100 will instead count toward existing recurring revenue. 
  
  
• When the contact associated with Deal A renews their subscription on 1 June 2022, you create a new deal (Deal B) to track the renewal. You set the following properties for Deal B:
  • Recurring revenue amount: $100
  • Recurring revenue deal type: Renewal
• In addition, to track this renewal you also set the following properties on Deal A:
  • Recurring revenue inactive date: 1 June 2022
  • Recurring revenue inactive reason: Renewal
• If you set the recurring revenue report to start date to 1 June 2022, the $100 from Deal A will be categorized as existing revenue because:
  • Deal A has a deal type of New business and an inactive reason of Renewal.
  • Deal B was closed on the same day as Deal A's inactive date and has a deal type of Renewal.