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Revenue Analytics

Revenue analytics provide comprehensive visibility into YeboLearn's revenue performance, growth drivers, and future projections. This analysis informs pricing decisions, sales strategy, and investor communications.

Revenue Overview

Current Revenue Performance

November 2025 Snapshot:

MetricValueMonth-over-MonthYear-over-Year
MRR$247,000+3.78% (+$9,000)+70% (+$102,000)
ARR$2.96M+3.78% (+$108,000 annual)+38%
Active Schools145+7.4% (+10 schools)+59% (+54 schools)
ARPU$1,703/month+2.7% (+$45)+6.9% (+$110)

Status: On track for $3M ARR by year-end, strong growth trajectory

MRR Movement Analysis

November 2025 MRR Waterfall:

Starting MRR (Nov 1):              $238,000 ████████████████████████

New Customer MRR:                  +$18,000 ██████
  - 5 Professional ($9,000)
  - 6 Essentials ($5,000)
  - 2 Enterprise ($9,000)
  - Less: 13 total = $18,000 net

Expansion MRR:                     +$7,200  ███
  - 2 upgrades Pro→Ent ($5,400)
  - 2 upgrades Ess→Pro ($1,800)
  - 8 student count increases ($600)
  - Less: downgrades = $7,200 net

Contraction MRR:                   -$3,600  ██
  - 2 downgrades Pro→Ess

Churned MRR:                       -$12,600 █████
  - 3 Essentials ($2,500)
  - 2 Professional ($3,600)
  - 0 Enterprise ($0)
  - Additional churn: $6,500

Ending MRR (Nov 30):               $247,000 ██████████████████████████

Net New MRR:                       +$9,000  ████
Growth Rate:                       +3.78%

MRR Component Breakdown:

  • New MRR: 75% of gross new MRR (target: 70%+)
  • Expansion MRR: 30% of gross new MRR (target: 25%+) ✓
  • Churn Rate: 5.3% gross churn (target: <6%) ✓
  • Net Churn: -2.3% (negative = expansion exceeds churn) ✓

MRR Growth (Last 12 Months):

MonthMRRNet New MRRMoM GrowthNew SchoolsChurned
Dec 2024$145K----
Jan 2025$155K+$10K6.9%82
Feb 2025$165K+$10K6.5%93
Mar 2025$180K+$15K9.1%112
Apr 2025$192K+$12K6.7%103
May 2025$204K+$12K6.3%124
Jun 2025$216K+$12K5.9%102
Jul 2025$228K+$12K5.6%123
Aug 2025$238K+$10K4.4%146
Sep 2025$245K+$7K2.9%125
Oct 2025$251K+$6K2.4%154
Nov 2025$247K-$4K-1.6%133

Trend Analysis:

  • Acceleration Period (Jan-Mar): Strong growth, market traction
  • Steady Growth (Apr-Aug): Consistent performance
  • Deceleration (Sep-Nov): Typical Q4 slowdown, holiday impact
  • Overall Trajectory: Healthy 70% YoY growth

ARR Evolution

Quarterly ARR Performance:

QuarterStarting ARREnding ARRNet New ARRQoQ GrowthYoY Growth
Q4 2024$1.56M$1.74M$180K11.5%-
Q1 2025$1.74M$2.16M$420K24.1%-
Q2 2025$2.16M$2.45M$290K13.4%-
Q3 2025$2.45M$2.76M$310K12.7%-
Q4 2025 (proj)$2.76M$3.08M$320K11.6%77%

Annual Targets:

  • 2025 Goal: $3.0M ARR (98% achieved as of Nov 30)
  • 2026 Goal: $5.0M ARR (67% growth required)
  • Path to Goal: Add $166K MRR over 12 months (~14 schools/month at current ARPU)

Revenue by Tier

Tier Distribution

Current MRR by Tier (November 2025):

TierSchools% of BaseMRR% of MRRARPUYoY Growth
Enterprise128.3%$54,00021.9%$4,500+50%
Professional8558.6%$153,00061.9%$1,800+42%
Essentials4833.1%$40,00016.2%$833+28%
Total145100%$247,000100%$1,703+38%

Tier Trends:

  • Enterprise: Growing faster than company average (high-value focus)
  • Professional: Core revenue driver, steady growth
  • Essentials: Entry point, conversion funnel to higher tiers

Tier Movement Analysis

Quarterly Tier Migrations (Q4 2025):

Upgrades (Positive):
  Essentials → Professional:    8 schools  (+$1,800 × 8 = +$14,400 MRR)
  Professional → Enterprise:    6 schools  (+$2,700 × 6 = +$16,200 MRR)
  Total Upgrade Impact:                    +$30,600 MRR

Downgrades (Negative):
  Enterprise → Professional:    0 schools  ($0 MRR impact)
  Professional → Essentials:    2 schools  (-$1,967 × 2 = -$3,934 MRR)
  Total Downgrade Impact:                  -$3,934 MRR

Net Tier Migration Impact:                 +$26,666 MRR

Tier Migration Rates:

  • Essentials → Professional: 17% quarterly conversion (excellent)
  • Professional → Enterprise: 7% quarterly conversion (good)
  • Downgrade Rate: 2.4% quarterly (low, healthy)

Target Migration Rates:

  • Essentials → Professional: 15%+ quarterly ✓
  • Professional → Enterprise: 5%+ quarterly ✓
  • Downgrade Rate: <5% quarterly ✓

Tier Economics

Tier Profitability Analysis:

TierARPUCOGS/SchoolGross MarginCACCAC PaybackLTV
Enterprise$4,500$1,20073%$8,5002.6 mo$292,500
Professional$1,800$72060%$2,4002.3 mo$56,160
Essentials$833$38054%$1,8004.8 mo$11,195

Insights:

  • Enterprise: Highest margin, longer sales cycle justified by LTV
  • Professional: Best balance of volume and economics
  • Essentials: Lower margin but important for land-and-expand strategy

Revenue by Region

Geographic Revenue Distribution

MRR by Province (November 2025):

RegionSchoolsMRR% of TotalARPUGrowth (YoY)
Gauteng58$107,30043.4%$1,850+61%
Western Cape38$65,36026.5%$1,720+58%
KwaZulu-Natal24$37,92015.4%$1,580+50%
Eastern Cape15$21,7508.8%$1,450+67%
Other Provinces10$14,6705.9%$1,467+42%
Total145$247,000100%$1,703+58%

Regional Insights:

  • Gauteng: Largest market, premium ARPU, competitive landscape
  • Western Cape: Fast-growing, tech-forward schools, strong pipeline
  • KZN: Emerging market, lower ARPU but improving
  • Eastern Cape: Highest growth rate, untapped opportunity

Regional Expansion Strategy

Target Regional Mix (End of 2026):

RegionCurrent %Target %Required Growth
Gauteng43.4%40%+38% (maintain dominance)
Western Cape26.5%28%+58% (accelerate)
KwaZulu-Natal15.4%18%+75% (expand)
Eastern Cape8.8%10%+70% (invest)
Other5.9%4%+2% (opportunistic)

Regional Go-to-Market:

  • Gauteng: Compete on features, target premium schools
  • Western Cape: Scale successful playbook, hire local sales
  • KZN: Build awareness, regional partnerships
  • Eastern Cape: Land-and-expand, focus on larger schools

Monthly Seasonality Patterns

Seasonal Index (100 = average month):

MonthSeasonal IndexTypical Performance
January115Strong (new school year planning)
February125Peak (school year starts, budget release)
March110Strong (momentum continues)
April105Above average
May95Average
June90Below average (mid-year)
July85Low (winter break)
August100Average (term 3 starts)
September105Above average
October95Average
November80Low (year-end, holidays)
December70Lowest (summer break, holidays)

Seasonal Strategies:

  • Q1 (Jan-Mar): Aggressive growth, capitalize on budget releases
  • Q2 (Apr-Jun): Steady acquisition, focus on retention
  • Q3 (Jul-Sep): Mid-year push, launch new features
  • Q4 (Oct-Dec): Retention focus, set up for strong Q1

YoY Revenue Growth Drivers:

DriverContribution to GrowthInsight
New Customer Acquisition45%Primary growth engine
Tier Upgrades28%Strong expansion
Student Count Increases18%Usage-based growth
Price Increases9%Annual price adjustments

Compounding Effects:

  • Base revenue grows through expansion
  • Newer cohorts start at higher ARPU
  • Retention improvements amplify growth

Revenue Forecasting

Short-Term Forecast (Next 3 Months)

December 2025 - February 2026 Projection:

MonthProjected MRRAssumptionsConfidence
Dec 2025$252K+$5K (+2%) - Holiday slowdownHigh (85%)
Jan 2026$268K+$16K (+6.3%) - New year surgeMedium (75%)
Feb 2026$285K+$17K (+6.3%) - School year startMedium (70%)

Forecast Assumptions:

  • December: 8 new schools, 2 churns, normal seasonality
  • January: 15 new schools, 3 churns, budget release timing
  • February: 16 new schools, 2 churns, peak season

Risk Factors:

  • Holiday period uncertainty (Dec)
  • Budget approval delays (Jan-Feb)
  • Competitive pressure in peak season

Medium-Term Forecast (Q1-Q4 2026)

Quarterly MRR Projections:

QuarterStarting MRREnding MRRNet New MRRGrowth Rate
Q1 2026$247K$335K+$88K35.6%
Q2 2026$335K$380K+$45K13.4%
Q3 2026$380K$410K+$30K7.9%
Q4 2026$410K$417K+$7K1.7%

Annual 2026 Target: $417K MRR ($5.0M ARR)

Forecast Methodology:

  • Bottom-up: Sales pipeline analysis (60% weight)
  • Top-down: Historical growth trends (25% weight)
  • Market-based: TAM and competitive dynamics (15% weight)

Confidence Levels:

  • Q1 2026: 75% confidence (strong pipeline visibility)
  • Q2 2026: 60% confidence (reasonable visibility)
  • Q3-Q4 2026: 45% confidence (limited visibility)

Long-Term Projection (2027-2028)

Annual ARR Targets:

YearARR TargetYoY GrowthSchoolsARPU
2025 (actual)$3.0M38%145$1,703
2026 (plan)$5.0M67%250$1,668
2027 (goal)$8.5M70%420$1,685
2028 (goal)$14.5M71%710$1,700

Growth Strategy by Year:

  • 2026: Scale sales team, expand regions, launch mobile app
  • 2027: Enter new markets (Nigeria, Kenya), add premium features
  • 2028: International expansion, enterprise focus, platform ecosystem

Revenue Quality Metrics

Revenue Retention

Net Revenue Retention (Last 12 Months):

CohortStarting MRRCurrent MRRChurnedExpansionNRR
Nov 2023$18,500$15,200-$6,100+$3,800103%
Feb 2024$28,500$25,400-$11,300+$8,200118%
May 2024$35,200$31,800-$13,000+$9,600120%
Aug 2024$42,800$39,200-$14,900+$11,400118%
Average----118%

NRR Benchmarks:

  • <100%: Losing revenue from existing customers
  • 100-110%: Healthy retention
  • 110-120%: Excellent expansion (YeboLearn is here)
  • 120%+: Best-in-class

NRR Drivers:

  • Tier upgrades: 52% of expansion
  • Student count increases: 28% of expansion
  • Feature add-ons: 12% of expansion
  • Annual → monthly price differential: 8%

Revenue Concentration

Customer Concentration Risk:

MetricValueRisk Level
Top 1 Customer (% of MRR)3.6%Low
Top 5 Customers (% of MRR)15.4%Low
Top 10 Customers (% of MRR)28.2%Low-Medium
Top 20 Customers (% of MRR)42.8%Medium

Assessment: Healthy distribution, no single customer represents >5% of revenue

Tier Concentration:

  • Professional tier: 61.9% of revenue (concentrated but not concerning)
  • Enterprise tier: 21.9% of revenue (growing, good diversification)
  • Essentials tier: 16.2% of revenue (entry segment)

Geographic Concentration:

  • Gauteng: 43.4% of revenue (concentrated but manageable)
  • Diversification strategy: Grow Western Cape and KZN to reduce dependency

Revenue Quality Score

Composite Revenue Quality Metric:

ComponentWeightScoreWeighted Score
NRR >110%25%10025
Customer Concentration <50%20%8517
Gross Margin >75%20%9519
Expansion Revenue >25% of New15%10015
Churn <5%20%9018
Total Revenue Quality Score100%-94/100

Interpretation: 94/100 = Excellent revenue quality (>90 = excellent, 70-90 = good, <70 = needs improvement)

Revenue Operations

Revenue Recognition

Recognition Policy:

  • Monthly subscriptions: Recognized in month of service
  • Annual subscriptions: Recognized ratably over 12 months
  • Setup fees: Recognized upon service delivery (minimal)

Deferred Revenue: $185,000 (prepaid annual subscriptions)

Billing and Collections

Billing Metrics:

MetricValueTarget
Invoice Sent on Time99.8%>99%
Auto-Payment Success96.2%>95%
Payment Failure Rate3.8%<5%
Avg Days to Collect2.3 days<7 days
Accounts Receivable$8,400❤️% of MRR

Collections Process:

  • Day 0: Auto-charge via Stripe
  • Day 3: Automated reminder for failed payments
  • Day 7: CSM outreach for large accounts
  • Day 14: Account suspension warning
  • Day 30: Account suspension (service paused)

Revenue Optimization Strategies

Pricing Optimization

Current Pricing Strategy:

  • Essentials: $100/month per 100 students (competitive entry)
  • Professional: $200/month per 100 students (value positioning)
  • Enterprise: Custom pricing $500+/month (premium tier)

Pricing Tests Planned (Q1 2026):

  1. Essentials $100 → $120 (test 20% increase)
  2. Professional annual discount 10% → 15% (encourage commitment)
  3. Enterprise value-based pricing (align to ROI delivered)

Expected Impact: +8% ARPU, minimal churn impact

Upsell and Cross-Sell

Upsell Opportunities:

  • Essentials → Professional: 48 schools eligible, 17% conversion rate
  • Professional → Enterprise: 85 schools, 12 eligible (>300 students), 7% conversion

Cross-Sell Add-Ons (Future):

  • API access: $500/month (Enterprise only)
  • Advanced analytics: $200/month (Professional+)
  • White-label option: $1,000/month (Enterprise)
  • Professional services: $2,000-5,000 one-time

Expansion Revenue Target: 35% of new MRR from existing customers

Next Steps

YeboLearn - Empowering African Education