Table 2From “What is growth accounting? Separate new, retained, expanded, and lost revenue”
What does a growth bridge look like?
Table 2What does a growth bridge look like?
| Component | Synthetic EUR 000 | Reconciliation role |
|---|---|---|
| Beginning recurring base | 1,000 | Starting eligible base |
| New revenue | +300 | Units outside beginning base |
| Expansion | +120 | More recurring value from beginning-base units |
| Contraction | -80 | Less recurring value from continuing units |
| Churn | -140 | Lost recurring value from exiting units |
| Ending recurring base | 1,200 | 1,000 + 300 + 120 - 80 - 140 |
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From the essay
Growth that compounds
What is growth accounting? Separate new, retained, expanded, and lost revenue
Growth accounting reconciles recurring revenue through new, expanded, contracted, and lost components. Keep revenue and customer counts separate.
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