Revenue Forecasting (Predictive) #
The Revenue Forecaster projects your future revenue based on historical MRR trends.
This is the same revenue forecast covered in Revenue Analytics: Revenue Forecasting. This page provides more detail on the model configuration.
Forecast Horizons #
| Horizon | Confidence | Use |
|---|---|---|
| 1 Month | High | Operational planning, cash flow |
| 3 Months | Good | Quarterly targets, hiring decisions |
| 6 Months | Moderate | Semi-annual planning |
| 12 Months | Directional | Annual budgeting |
Configuring the Forecast Model #
- Go to DDLS > Analytics > Settings
- Find Predictive Analytics
- Under Revenue Forecast Model, choose: Linear, Seasonal, or Moving Average
- Save Settings
The model is applied on the next nightly calculation run.
Model Selection Guide #
Use Linear when:
– Your MRR has grown at a reasonably consistent rate
– You do not have strong seasonal patterns
– You are an early-stage business with less than 12 months of data
Use Seasonal when:
– Your business has clear seasonal peaks and troughs (e.g., education software with back-to-school spikes)
– You have at least 12 months of historical data for the seasonal pattern to be detected
Use Moving Average when:
– Your revenue is volatile or unpredictable
– You want the forecast to react quickly to recent changes
– You are in a period of rapid change (pricing change, new product launch)
Reading Forecast Charts #
The forecast chart on the Revenue Analytics page shows:
– Solid line: Historical MRR (actual)
– Dashed line: Forecasted MRR
– Shaded area: Confidence interval (lower to upper bound)