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FY2025 REVENUE BRIDGE ANALYSIS
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EXECUTIVE SUMMARY
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FY2025 revenue remained virtually flat year-over-year at $11.24M (-0.04%),
masking significant segment divergence. Enterprise declined 12% while SMB
surged 43%. Aggregate growth drivers—new customers (+$463K) and expansion
(+$1,264K)—were offset by customer churn (−$1,288K) and contraction
(−$443K).


BRIDGE SUMMARY
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FY2024 Starting Revenue:              $11,243,300
  New Customers:                      +$  462,893
  Churned Customers:                  −$1,288,224
  Expansion (Existing Customers):     +$1,263,882
  Contraction (Existing Customers):   −$  443,473
  Timing Adjustments:                 +$   53,080
                                      ─────────────
FY2025 Ending Revenue:                $11,238,378
                                      ═════════════

Variance (FY25 vs FY24):              −$    4,922  (-0.04%)


BY SEGMENT ANALYSIS
===================

ENTERPRISE (10 customers)
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FY2024 Revenue:                       $  6,258,216
FY2025 Revenue:                       $  5,509,652
Change:                               −$  748,564  (-12.0%)

Drivers:
  Expansion:                          +$  660,978
  Contraction:                        −$  220,558
  Churned Customers:                  −$1,188,984
    • Birchway Foods:                 −$  503,177
    • Fenwick Legal:                  −$  685,807

Key Insights:
  • 2 large customers churned, representing 19% of segment revenue
  • Remaining 8 customers showed net expansion of +$440K
  • Requires immediate mitigation for FY2026


MID-MARKET (16 customers)
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FY2024 Revenue:                       $  4,036,244
FY2025 Revenue:                       $  4,371,079
Change:                               +$  334,835  (+8.3%)

Drivers:
  Expansion:                          +$  500,692
  Contraction:                        −$  165,857
  New Customers:                      $        0
  Churn:                              $        0

Key Insights:
  • Most stable segment with zero churn
  • Consistent expansion across portfolio (16 net gains)
  • Expansion (+$501K) exceeded contraction (-$166K) by 3x
  • Strong segment health, set for continued growth


SMB (22 customers)
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FY2024 Revenue:                       $    948,840
FY2025 Revenue:                       $  1,357,647
Change:                               +$  408,807  (+43.1%)

Drivers:
  New Customers:                      +$  462,893 (6 new logos)
  Expansion:                          +$  102,212
  Churned Customers:                  −$   99,240 (2 logos)
  Contraction:                        −$   57,058

Key Insights:
  • Highest growth rate, driven by new customer acquisition
  • New cohort added +$463K in year-one revenue
  • Organic expansion in existing base (+$102K)
  • Net retention: 14 existing + 6 new − 2 churned = 18 retained


CUSTOMER METRICS
================

Retention by Segment:
  Enterprise:   80% retention (8/10, 2 churned)
  Mid-Market:  100% retention (16/16, 0 churned)
  SMB:          78% retention (14/18, 2 churned; 6 new = net +4)

Total Customer Base:
  FY2024:       40 customers
  FY2025:       42 customers (net +2, despite 4 gross churns)

New Customers Added:
  SMB:            6 new logos, averaging $77.1K each

Expansion Quality:
  Enterprise:   $661K expansion across 8 customers (avg +$83K per account)
  Mid-Market:   $501K expansion across 16 customers (avg +$31K per account)
  SMB:          $102K expansion across 14 customers (avg +$7K per account)


KEY TAKEAWAYS
=============

1. SEGMENT DIVERGENCE
   Enterprise deteriorated significantly; Mid-Market stable; SMB explosive.
   Recommend reassessing Enterprise segment strategy and account retention.

2. EXPANSION OFFSET CHURN
   Combined expansion of +$1.26M nearly offset churn of -$1.29M,
   indicating healthy core business with execution risk in top segment.

3. SMB MOMENTUM MASKS ENTERPRISE DECLINE
   SMB growth (+43%) partially masks Enterprise decline (-12%),
   creating blended flat result that obscures underlying dynamics.

4. NEW CUSTOMER ECONOMICS
   6 new SMB customers contributed $463K revenue (avg $77K per logo).
   Evaluate payback period and contribution margin to assess CAC ROI.

5. RETENTION RISK
   Enterprise retention at 80% is concerning; Mid-Market at 100% is a
   bright spot. Recommend deep-dive into churned Enterprise accounts.


FILES GENERATED
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• revenue_bridge.html      - Interactive dashboard (open in browser)
• revenue_bridge.csv       - Bridge summary table
• bridge_data.json         - Structured bridge data for integration
• bridge_calc.py           - Python analysis script
• REVENUE_BRIDGE_ANALYSIS.txt - This file

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