Nextian captures financial information — revenue, cost, profit, and margin — at the individual service level.
Aggregate numbers, calculated automatically, are also available on accounts, products, and locations, but they are always derived from service-level data.
The structure of the financial data for a service resembles a monthly income statement, with the following fields:
| Monthly Recurring Revenue (MRR) | ← | Monthly service revenue (what a customer sees on the bill before taxes); similar to gross revenue. |
| Cost of Elements | ← | Equivalent to COGS (Cost of Goods Sold); calculated as the sum of the monthly cost of all elements making up the service. |
| Gross Profit | ← | Calculated as Monthly Recurring Revenue – Cost of Elements. |
| Gross Margin % | ← | Gross profit expressed as a percentage: Gross Profit / MRR. |
| Commission | ← | Sales commission paid, treated as an SG&A (operational expense). |
| Net Profit | ← | Calculated as Gross Margin – Commission. |
| Net Margin % | ← | Net profit expressed as a percentage: Net Profit / MRR. |
| Important | In Nextian terminology, profit is expressed as a currency amount, while margin is always shown as a percentage. |
Example
| Monthly Recurring Revenue (MRR) associated with a service | $350.00 |
| Cost of Elements of the service (e.g., a firewall, port on a switch, bandwidth, etc.) | $225.00 |
| Gross Profit | $125.00 ($350.00 - $225.00 = $125.00) |
| Gross Margin | 35.7% ($125.00 / $350.00 = 35.7%) |
| Commission (15%) | $52.50 (15% * $350.00 = $52.50) |
| Net Profit | $72.50 ($125.00 – $52.50 = $72.50) |
| Net Margin | 20.7% ($72.50 / $350.00 = 20.7%) |
Key Use Cases
While this isn’t a fully detailed financial model, it provides enough insight to quickly answer key questions, such as:
- Which customer should I call first during a service outage — the one with the highest-profit service or the most revenue?
- Which upgrade opportunity should I prioritize — the one that generates the highest additional revenue or profit?
- Which products are generating the most revenue?
- What is the revenue density by country, by state and by city?
- How much revenue and profit are impacted by an element outage?
- How much revenue and profit are associated with an open customer case?
Accessing Service Financial Information
To access financial information on a service:
- Open service details.
- Scroll down to the Revenue, Profit & Margin section.
Aggregated financial summaries are also available on Accounts, Locations, and Products. They can be accessed in the same way as for services: open the record details and scroll down to the Revenue, Profit & Margin section.
