Google Financial Analyst (Senior Level) - Comprehensive Interview Preparation Guide
Google's Financial Analyst interview process at the Senior Level consists of a structured 4-6 week evaluation designed to assess financial modeling expertise, analytical rigor, strategic thinking, and ability to drive business impact. The process includes a recruiter screening, two technical phone screens, and six onsite interview rounds covering advanced financial analysis, case studies, behavioral assessment, and cross-functional problem-solving. Senior candidates are expected to demonstrate deep domain expertise, ownership of complex analyses, mentorship capabilities, and the ability to translate financial insights into actionable business recommendations.
Interview Rounds
Recruiter Screening
What to Expect
The initial conversation with a Google recruiter lasts 20-30 minutes and focuses on background alignment, motivation, and basic fit. The recruiter will discuss your career progression, why you're interested in Google and the specific Financial Analyst role, and whether your experience matches the team's needs. This is non-technical but sets expectations for subsequent rounds. Your goal is to demonstrate clear interest in financial analysis at Google, articulate what attracts you to the company, and show that you understand the role's scope and responsibilities.
Tips & Advice
Prepare concise answers for 'Tell me about yourself,' 'Why Google?', 'Why this role?', and 'Walk me through your resume,' focusing on career progression and analytical accomplishments. Highlight 2-3 significant financial analysis projects or models you've built. Research Google's business model, recent financial announcements, and how the Financial Analyst role contributes to company strategy. Show enthusiasm for the company's analytical culture and innovation. Mention specific aspects of Google's business (e.g., Ads, Cloud, YouTube monetization strategies) to demonstrate genuine interest. Be authentic—the recruiter is assessing cultural alignment, not testing knowledge.
Focus Topics
Key financial analysis accomplishments
2-3 concrete examples of complex financial models, analyses, or recommendations you've led that directly impacted business decisions—ready to be expanded in later rounds.
Career narrative and progression
Clear articulation of your financial analysis journey, key achievements, and growth trajectory to senior level, demonstrating continuous development and increasing scope of responsibility.
Motivation for Google and the role
Specific reasons for applying to Google (beyond compensation), understanding of what the Financial Analyst role entails, and how your skills align with the team's needs.
Technical Phone Screen 1: Financial Analysis and Modeling
What to Expect
45-60 minute video call with a current Google Financial Analyst or senior analyst testing your financial modeling capabilities and analytical approach. This round simulates real-world scenarios you'll encounter: building a financial model under time constraints, analyzing financial data, and communicating assumptions and recommendations. You may be given a real or hypothetical business scenario (e.g., 'Forecast the financial impact of a new product line' or 'Analyze this acquisition opportunity') and asked to build an analysis or model on a shared document (typically Google Sheets). The focus is on your methodology, reasoning, ability to simplify complexity, and how you handle uncertainty and missing data.
Tips & Advice
Expect an open-ended financial scenario requiring you to build a model or conduct an analysis in real-time. Start by clarifying the business question and what you're trying to determine. Outline your approach before diving into calculations—explain your assumptions, data sources, and the logic behind your framework. Work out loud so the interviewer can follow your thinking. Be comfortable with ambiguity; ask clarifying questions about market size, growth rates, cost structures, etc., or state reasonable assumptions if data is unavailable. For a modeling scenario, create a simple, clear structure (revenue drivers, cost assumptions, projections) rather than a complex spreadsheet. Demonstrate sensitivity analysis—discuss how key assumptions (e.g., market adoption rate, pricing) affect the outcome. Be prepared to pivot: if the interviewer wants to explore a different angle, adjust quickly without defensiveness. At senior level, they expect you to think strategically, not just mechanically plug numbers. Reference the job description: emphasize forecast creation, trend analysis, scenario modeling, and translating financial outcomes into strategic recommendations.
Focus Topics
Handling uncertainty and incomplete information
Comfort building analyses with limited data, using reasonable proxies or comparable benchmarks, acknowledging limitations, and providing a range of outcomes (e.g., base, optimistic, pessimistic scenarios).
Data interpretation and trend analysis
Ability to quickly extract insights from financial data, identify trends, outliers, and relationships between variables, and assess data quality and completeness.
Assumption development and justification
Ability to identify critical assumptions, justify them with logic or data, state explicitly when data is unavailable and make reasonable estimates, and explain sensitivity of outcomes to key drivers.
Financial modeling frameworks and methodologies
Ability to structure complex financial analyses using DCF, comparable company analysis, precedent transactions, scenario analysis, and sensitivity analysis. Understanding of when and why to use each approach.
Real-time financial model construction and iteration
Ability to quickly build a working financial model in Excel or Google Sheets under time pressure, structuring assumptions logically, creating clean formulas, and presenting results clearly.
Technical Phone Screen 2: Strategic Analysis and Business Recommendation
What to Expect
45-60 minute video call with a different current analyst or a senior team member, focusing on translating financial analysis into strategic business recommendations. This round may include a case study (e.g., 'Should Google invest in or acquire this company?' or 'How would you forecast the ROI of a new product or service?') or a product-centric question (e.g., 'How would you measure the financial success of a new Google Ads feature?'). The emphasis is on your ability to synthesize data, understand business drivers, simplify complexity for stakeholders, and make recommendations that influence strategy. At senior level, you're expected to demonstrate strategic thinking, stakeholder understanding, and business acumen beyond pure financial calculation.
Tips & Advice
Read the scenario carefully and ask clarifying questions before jumping to analysis. Understand the business context: What is the decision maker trying to decide? What are the key trade-offs? What does success look like? Structure your response clearly: define the question, outline your analytical approach, walk through key findings, and end with a recommendation or decision framework. For investment or acquisition decisions, evaluate financial metrics (valuation, synergies, ROI, payback period) alongside strategic factors (market fit, competitive advantage, execution risk). For product/service launches, identify revenue drivers (pricing, adoption curves, market size) and cost drivers, then forecast impact on profitability and strategic goals. Use the job description: emphasize budget forecasting, variance analysis, investment opportunity evaluation, and providing insights to guide investment decisions and strategic planning. At senior level, show ability to think like the business stakeholder, not just the analyst—understand operational metrics, market dynamics, and how financial decisions cascade through the organization. Anticipate follow-up questions: 'What if adoption is slower?' 'How would regulatory changes affect this?' 'How does this fit with our strategic priorities?' Be comfortable saying 'I don't know, but here's how I'd get the answer.'
Focus Topics
Scenario analysis and decision frameworks for strategic choices
Ability to develop multiple plausible scenarios (optimistic, base, pessimistic), use them to frame strategic decisions, and help stakeholders understand trade-offs and downside risks.
Understanding product and market economics
Business acumen in your domain: understanding pricing strategies, customer acquisition economics, unit economics, competitive dynamics, and how product changes affect financial outcomes.
Investment opportunity evaluation and recommendation
Ability to assess investment, acquisition, or strategic initiative opportunities by analyzing financial metrics (NPV, IRR, payback, synergies), qualitative factors (strategic fit, execution risk), and providing a clear yes/no or prioritization recommendation.
Revenue and cost driver analysis
Ability to decompose financial projections into component drivers (pricing, volume, adoption curves, churn, cost per unit, fixed vs. variable costs), understand which drivers most influence outcomes, and adjust analyses as business assumptions change.
Communicating complex financial insights to non-financial stakeholders
Ability to translate financial analysis into business impact and operational implications, simplifying jargon, focusing on what matters to the stakeholder (e.g., resource allocation, ROI, timeline), and presenting findings to executives and non-financial leaders.
Onsite Interview 1: Advanced Financial Modeling and Analysis
What to Expect
45-minute onsite interview (or video if remote) with a Financial Analyst or senior analyst focusing on deep financial modeling and technical skills. This round typically involves a detailed modeling exercise on a provided dataset or scenario, testing your ability to work with actual or realistic financial data, build a multi-scenario model, perform sensitivity analysis, and explain your methodology clearly. You may be given historical financial statements, business metrics, and asked to forecast or analyze performance. The interviewer watches how you approach complexity, organize your thinking, handle data issues, and communicate assumptions. At senior level, the expectation is fast, accurate, well-structured work with sophisticated analysis rather than just calculation.
Tips & Advice
You'll likely work on a provided dataset (possibly Google Sheets, Excel, or similar). Before building anything, spend 3-5 minutes understanding the data: What columns do we have? What's the time period? What are the ranges and outliers? Ask the interviewer what specific outputs they need (e.g., forecast revenue for next 3 years, calculate ROI, identify cost optimization opportunities). Structure your model cleanly: separate input assumptions from calculations, use clear row/column labels, avoid hardcoding numbers. Build a simple, understandable model first—show logic over complexity. Include a sensitivity table showing how key assumptions (e.g., growth rate ±10%) affect outcomes. Narrate your approach: 'I notice this cost category has grown faster than revenue; I'll model it as a percentage of revenue to isolate that trend.' At senior level, you're expected to spot data quality issues, make reasonable adjustments, and explain your choices. If time is tight, prioritize clear structure and correct logic over filling in every cell. Be ready to pivot: if the interviewer asks 'What if we adjust pricing?' quickly incorporate that change and update your outputs. Bring your financial analysis skills to bear: think about variance between actual and forecast, understand seasonality or cyclicality in the data, and discuss what the numbers mean for the business.
Focus Topics
Financial data analysis and quality assessment
Ability to load and explore financial datasets quickly, identify patterns, anomalies, outliers, and data quality issues, make reasonable corrections or adjustments, and explain your choices.
Variance analysis and trend decomposition
Ability to analyze historical vs. forecast performance, decompose variances (e.g., volume vs. price impacts), identify trends in data, and explain the 'why' behind changes.
Structured model design and documentation
Ability to organize a financial model with clear logic, separable assumptions from calculations, labeled inputs/outputs, and brief documentation explaining key formulas and sources.
Multi-scenario financial modeling (base, optimistic, pessimistic)
Ability to construct models that incorporate multiple forecast scenarios reflecting different business outcomes, clearly separate assumptions by scenario, and compare financial results across scenarios.
Sensitivity analysis and key driver identification
Ability to systematically test how changes in critical assumptions (market size, growth rate, pricing, costs) affect financial outcomes, identifying which 2-3 drivers have the most material impact on results.
Onsite Interview 2: Behavioral and Leadership
What to Expect
45-minute onsite interview (or video if remote) with a hiring manager or senior analyst, focusing on behavioral competencies and senior-level leadership qualities. Expect 3-4 behavioral questions about your past experiences, structured using the STAR method: Situation, Task, Action, Result. Questions will explore how you've handled challenges (e.g., 'Tell me about a time you had to present complex financial data to a non-financial audience,' 'Describe a project where you had to mentor or guide a junior analyst,' 'Tell me about a time you had to influence a decision with your analysis'). The interviewer assesses leadership, ownership, collaboration, resilience, impact, and alignment with Google's values (e.g., boldness, intellectual humility, customer focus). At senior level, they're evaluating whether you can take on increasing responsibility, mentor others, and drive team-level impact.
Tips & Advice
Prepare 5-6 detailed stories using the STAR method covering: a complex project you led (demonstrating ownership and impact), a time you had to simplify financial insights for non-experts (communication), an example of mentoring or developing someone (leadership), a time you handled ambiguity or incomplete data (resilience and judgment), a situation where your analysis influenced a major business decision (impact), and a time you collaborated across teams (teamwork). Each story should take 2-3 minutes to tell and clearly articulate the business outcome. Quantify impact where possible (e.g., 'My analysis helped the team save $2M in annual costs' or 'The model I built is now used by three business units'). At senior level, emphasize: taking ownership of complex projects, managing ambiguity without escalating unnecessarily, developing others, and driving decisions with your analysis. Show intellectual humility: 'I realized my initial assumption was wrong, so I...'; admit what you learned. Connect stories to Google's values: ownership (you took initiative), boldness (you proposed a new approach), analytical excellence (you were rigorous), and customer/stakeholder orientation (you thought about impact). Practice telling stories concisely and vividly—avoid rambling. Make eye contact and show genuine enthusiasm about your accomplishments.
Focus Topics
Communicating financial insights to non-financial audiences
Real examples of presenting complex financial analyses to business leaders, product teams, or engineers with limited financial background, tailoring explanation to their priorities, and getting buy-in for recommendations.
Handling ambiguity, data gaps, and analytical challenges
Examples of situations with incomplete data, conflicting information, or unclear requirements, how you approached them, and how you arrived at defensible recommendations despite uncertainty.
Cross-functional collaboration and stakeholder influence
Examples of working with product, engineering, marketing, or other teams to understand business drivers, align on assumptions, and use your analysis to influence decisions or strategy.
Ownership and impact on complex financial analyses
Examples of taking end-to-end ownership of challenging financial projects, managing ambiguity, making trade-off decisions, and achieving measurable business impact (e.g., informing major investment, saving costs, influencing strategy).
Mentorship and developing team members
Specific examples of teaching or mentoring junior analysts, providing feedback, building their skills, and how you approach developing others. Senior roles often involve growing the team.
Onsite Interview 3: Strategic Case Study and Business Impact
What to Expect
45-minute onsite interview (or video if remote) with a senior manager or experienced analyst, presenting a more complex, strategic case study. This round typically begins with a real or detailed hypothetical scenario (e.g., 'A new market opportunity has appeared; evaluate whether Google should enter,' 'A proposed acquisition is on the table; build a financial case for/against,' 'Forecast the financial impact of shifting our pricing model'). You're given background materials (financial statements, market data, assumptions), asked to analyze and recommend within the time box, and then present your recommendation and reasoning to the interviewer, who will challenge your assumptions and probe deeper. This tests your ability to manage a realistic consulting-like project under time pressure, think strategically, defend your analysis, and adjust when challenged. At senior level, you're expected to quickly synthesize information, identify strategic implications, and present like you're advising a C-suite executive.
Tips & Advice
Read the case carefully and spend 2-3 minutes outlining your approach before diving into analysis. What's the core decision? What financial metrics matter most? What's my analytical plan? Work through the math systematically and clearly, narrating your reasoning. At senior level, they expect you to think beyond the numbers: What are the strategic implications? What does the financial outcome mean for our competitive position or growth? What risks or dependencies should we monitor? Prepare a clear recommendation backed by 2-3 key findings. Structure your presentation: 'The question is... My recommendation is... Because...' followed by key supporting analysis. Anticipate tough questions ('What if your growth assumption is too optimistic?' 'How does this fit with our other initiatives?' 'What's the biggest risk?') and have thoughtful responses ready. Show intellectual honesty: if the data points in a surprising direction, don't shy away from it. If your recommendation is nuanced (e.g., 'Do it, but with these conditions'), explain the reasoning. At senior level, advisors want to see mature judgment, comfort with trade-offs, and ability to communicate uncertainty without sounding unsure. Use job description language: tie your analysis to 'strategic business decision-making,' 'evaluating investment opportunities,' and 'providing insights that guide investment decisions.' Be prepared to discuss implementation: 'If we decide yes, here are the key metrics we'd monitor quarterly.'
Focus Topics
Synthesis of financial and strategic insights
Ability to connect financial outcomes to business implications, understand how financial results affect strategy and vice versa, and communicate why the numbers matter for the business.
Defending and adjusting analysis under scrutiny
Ability to articulate key assumptions and reasoning clearly, respond to skepticism or alternative viewpoints without defensiveness, adjust analysis if new information emerges, and maintain intellectual integrity.
Strategic framework development for complex decisions
Ability to structure complex business decisions using a clear framework (e.g., financial case, strategic fit, execution risk, competitive implications), weigh multiple factors, and synthesize into a clear recommendation.
Investment appraisal and decision-making
Evaluating investments (new products, acquisitions, expansions, technology) using financial metrics (NPV, IRR, payback, valuation multiples), assessing strategic fit, and making a defensible recommendation that others can act on.
Onsite Interview 4: Technical Skills, Tools, and Process
What to Expect
45-minute onsite interview (or video if remote) with a peer analyst or technical specialist, focusing on your proficiency with tools and processes that Financial Analysts use at Google. This round typically includes: hands-on or discussion-based assessment of your Excel/Google Sheets skills (formulas, pivot tables, data validation, macro/script use), familiarity with SQL or Python for data extraction and analysis, experience with analytics tools, and your general approach to technical efficiency and automation. You may be asked about specific analyses you've performed using tools, challenges you've solved with automation, or given a quick problem to demonstrate tool proficiency (e.g., 'Write a SQL query to...' or 'Show me how you'd set up this model in Sheets'). The interviewer also assesses your learning mindset: are you comfortable picking up new tools? Do you think about efficiency and scalability?
Tips & Advice
Be honest about your tool proficiency but highlight areas where you've developed expertise. Excel and Google Sheets are must-haves; demonstrate competency with formulas (VLOOKUP, INDEX-MATCH, IF statements, pivot tables, data analysis tools). If you have SQL experience, be ready to discuss queries (SELECT, WHERE, JOIN, aggregation) or write a simple query. If you have Python/R experience, discuss analyses you've performed or problems you've solved with scripting. The interviewer wants to see you think about efficiency: 'Manually updating this report took 6 hours; I built a SQL query and Google Sheets import that reduced it to 30 minutes weekly.' Discuss your approach to learning new tools—did you teach yourself SQL? Take a course? Learn on the job? At senior level, you're expected to independently pick up tools and think about how they can scale your impact. Talk about best practices: data governance, documentation, version control, or peer review of your analysis. If asked about a technical skill you don't have, be direct: 'I haven't used that tool, but I'm quick to learn; here's how I'd approach learning it.' Avoid overstating skills you don't have; Google will test you in depth.
Focus Topics
Analytics and business intelligence tools
Familiarity with BI tools (e.g., Tableau, Data Studio, Looker) for data exploration, dashboard creation, and stakeholder reporting. Understanding of how to structure data for self-service analytics.
Python/R for financial analysis and automation
Ability to write scripts for data cleaning, financial calculations, sensitivity analysis, or report generation. Understanding of when to use Python/R vs. spreadsheets and ability to apply these tools to real analyses.
SQL for financial data extraction and analysis
Ability to write SQL queries to extract, transform, and aggregate financial data from databases (SELECT, WHERE, JOIN, GROUP BY, window functions), reducing reliance on manual data processes.
Technical problem-solving and learning agility
Demonstrated ability to independently solve technical problems, learn new tools quickly, think about efficiency and automation, and improve processes over time.
Excel/Google Sheets advanced proficiency
Mastery of spreadsheet tools including formulas (VLOOKUP, INDEX-MATCH, SUMIFS), pivot tables, data analysis and charting, scenario analysis (Goal Seek, data tables), and using sheets as a platform for analysis and stakeholder-facing reports.
Onsite Interview 5: Product Knowledge and Industry Insight
What to Expect
45-minute onsite interview (or video if remote) with a product manager, senior analyst, or business unit stakeholder, assessing your understanding of Google's business, products, and market dynamics. This round may include: questions about Google's revenue streams (Ads, Cloud, YouTube), how specific products are monetized, recent Google announcements or strategic moves, competitive landscape, and your insights on emerging opportunities or challenges. You may be asked to analyze a product or business decision from Google (e.g., 'What's the financial impact of Google's shift toward AI investments?') or discuss trends in your domain (e.g., advertising market dynamics, cloud growth, search trends). The goal is to understand whether you have genuine business acumen, stay informed about your domain, and can think strategically about Google's business and position.
Tips & Advice
Research Google's business model deeply: Understand Ads (search, YouTube, network) as the primary revenue driver, Cloud growth, emerging bets (AI, hardware). Read recent earnings calls, investor letters, and financial press about Google. Understand key metrics (cost-per-click, viewable CPM, retention, cloud growth rate, operating margin trends). Be prepared to discuss how Google monetizes products, competitive threats (Amazon in cloud, Microsoft in search via Bing/Copilot), and future opportunities (AI, enterprise products). If asked about a product or announcement, apply financial thinking: 'The shift to AI investments will require increased R&D spend and could pressure margins short-term, but if successful, could unlock new revenue streams.' Show you think about both upside and risks. Discuss market trends relevant to your potential team (e.g., ad market growth, cloud adoption, pricing trends). At senior level, connect financial analysis to strategy: 'Here's the market opportunity; here's how Google is positioned; here's what could go wrong; here's how we measure success.' Avoid generic statements like 'Google is innovative'—be specific. If you don't know something ('I'm not sure about Google's recent AI investments'), say so but offer how you'd learn: 'I'd dig into recent earnings calls and press releases.' Show intellectual curiosity; that's what Google values.
Focus Topics
Google's financial performance and investor narrative
Familiarity with Google's recent financial results, key metrics highlighted in investor communications, management's strategic priorities, and how financial strategy supports competitive positioning.
Competitive landscape and strategic positioning
Understanding of Google's key competitors by business segment (Amazon, Microsoft, Meta, Apple), their relative positioning, and competitive dynamics (pricing, product differentiation, market share trends).
Market trends and growth drivers
Awareness of key trends affecting Google (AI and automation, cloud adoption, advertising regulation, consumer privacy changes, emerging technologies) and ability to assess their financial implications.
Google's business model and revenue streams
Deep understanding of Google's main revenue sources (Ads, Cloud, YouTube), how each monetizes, margin profiles, growth rates, and recent performance. Ability to analyze financial drivers of each business segment.
Onsite Interview 6: Integration and Hiring Manager Deep Dive
What to Expect
45-minute onsite interview (or video if remote) with the hiring manager or a senior leader of the Financial Analysis team, serving as a final integrative assessment and mutual fit evaluation. This round pulls together insights from earlier interviews: the hiring manager may revisit a technical scenario or behavioral question to probe deeper, assess team dynamics and working style, discuss the role's expectations and growth opportunities, and answer your questions about the team and company. Expect questions about how you work (pace, independence, collaboration, learning preferences), your goals and career aspirations, and your thoughts on the team and role. The hiring manager is assessing: Can you handle the role's scope? Do you mesh with team culture? Are you genuinely excited about the opportunity? Will you stay and grow with the team? This is also your chance to evaluate whether Google and the specific team are right for you.
Tips & Advice
Come prepared with thoughtful questions about the role, team, and growth opportunities, but also be ready to discuss yourself deeply. The hiring manager wants to understand your working style, what motivates you, and how you'll contribute to the team. Be genuine about your goals and ambitions—do you want to deepen financial expertise, move toward management, specialize in a domain (e.g., cloud finance)? Be curious about the team's current challenges and strategic priorities. If asked about concerns (e.g., 'What worried you about this role?'), be honest but forward-looking: 'I want to ensure I'm building skills in data analysis; has the team done training or projects in that area?' Show enthusiasm for Google's mission and products, but ground it in thoughtfulness: 'I'm excited about financial analysis in the cloud space because...' At senior level, you're expected to think about your broader impact: how you'll mentor others, how your work fits into larger strategy, what you hope to build over 3-5 years. Make it a two-way conversation; Google wants to hire people who are deliberate about their choices. Be yourself—cultural fit matters and is mutual.
Focus Topics
Career goals and long-term aspirations
Where you see yourself in 3-5 years, what you want to deepen or develop, whether you're interested in management, technical expertise, or specialization in a domain.
Synthesis of interview learnings and key questions
Demonstration that you've absorbed themes across interviews, thought about implications for the role, and have well-reasoned questions about team dynamics, resources, success metrics, or career growth.
Mutual fit and cultural alignment
Your genuine interest in Google and this specific team, alignment with Google's values (boldness, ownership, analytical rigor), and thoughtful assessment of whether this is the right opportunity for you.
Understanding of the role, team, and business context
Based on interviews and research, your understanding of what the Financial Analysis team does, current priorities and challenges, and how your background prepares you to contribute.
Working style and collaboration approach
How you approach teamwork, communication preferences, your typical workflow (independent analysis followed by check-ins, or frequent collaboration?), and your style when working with diverse perspectives.
Growth mindset and learning orientation
How you approach learning new skills, feedback, and growth; examples of skills you've developed over your career; your openness to challenges outside your comfort zone.
Frequently Asked Financial Analyst Interview Questions
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MRR = sum( subscription price per customer for the month )Net New MRR = New MRR + Expansion MRR − Contraction MRR − Churned MRRLogo Churn % = ( # customers lost during month / # customers at start of month ) * 100CAC = ( Sales + Marketing spend for period ) / # new customers acquired in periodLTV = ARPA * gross margin % * (1 / logo churn rate)
LTV:CAC = LTV / CACSample Answer
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Sample Answer
-- 1. normalize invoices: sign, per-day rate, annualize
WITH inv_norm AS (
SELECT
i.invoice_id,
i.subscription_id,
s.customer_id,
s.start_date,
date_part('year', s.start_date)::int AS cohort_year,
i.invoice_date,
i.recognized_date,
CASE WHEN i.invoice_type = 'credit' THEN -i.amount ELSE i.amount END AS amount,
-- assume invoice covers period [recognized_date, recognized_end_date] if available; else treat as one-off
i.recognized_end_date,
-- days covered (fallback 1)
GREATEST(1, (i.recognized_end_date - i.recognized_date)) AS days_covered,
-- daily revenue and annualized ARR contribution = daily * 365
(CASE WHEN (i.recognized_end_date IS NOT NULL)
THEN (CASE WHEN i.invoice_type='credit' THEN -i.amount ELSE i.amount END) / GREATEST(1, (i.recognized_end_date - i.recognized_date))
ELSE (CASE WHEN i.invoice_type='credit' THEN -i.amount ELSE i.amount END)
END) * 365.0 AS annualized_arr
FROM invoices i
JOIN subscriptions s USING (subscription_id)
),
-- 2. build monthly snapshots per customer for months 0..12 relative to cohort start
monthly AS (
SELECT
cohort_year,
customer_id,
date_trunc('month', start_date) + (n * interval '1 month') AS period_month,
SUM(annualized_arr) FILTER (WHERE date_trunc('month', recognized_date) = date_trunc('month', start_date) + (n * interval '1 month')) AS delta_arr
FROM inv_norm
CROSS JOIN generate_series(0,12) n
GROUP BY 1,2,3
),
-- 3. compute starting ARR and movement types by comparing customer ARR between months
cust_monthly AS (
SELECT
cohort_year,
customer_id,
period_month,
SUM(delta_arr) OVER (PARTITION BY cohort_year, customer_id ORDER BY period_month ROWS BETWEEN UNBOUNDED PRECEDING AND CURRENT ROW) AS cum_arr
FROM monthly
),
-- 4. classify movements between month t-1 and t
movements AS (
SELECT
cohort_year,
period_month,
SUM(GREATEST(cum_arr - lag(cum_arr) OVER (PARTITION BY cohort_year, customer_id ORDER BY period_month), 0)) FILTER (WHERE lag(cum_arr) IS NOT NULL AND cum_arr > lag(cum_arr)) AS expansion,
SUM(GREATEST(lag(cum_arr) - cum_arr, 0)) FILTER (WHERE lag(cum_arr) IS NOT NULL AND cum_arr < lag(cum_arr)) AS contraction,
SUM(CASE WHEN cum_arr = 0 AND lag(cum_arr) > 0 THEN lag(cum_arr) ELSE 0 END) AS churned,
SUM(CASE WHEN lag(cum_arr) IS NULL THEN cum_arr ELSE 0 END) AS new_arr,
SUM(CASE WHEN lag(cum_arr) IS NULL THEN cum_arr ELSE 0 END) FILTER (WHERE period_month = date_trunc('month', start_date)) AS starting_arr -- adjust as needed
FROM cust_monthly cm
JOIN subscriptions s ON cm.customer_id = s.customer_id AND date_part('year', s.start_date)=cm.cohort_year
GROUP BY cohort_year, period_month
)
-- final aggregation: per cohort totals over 12 months
SELECT
cohort_year,
SUM(starting_arr) AS starting_arr,
SUM(new_arr) AS new_arr,
SUM(expansion) AS expansion,
SUM(contraction) AS contraction,
SUM(churned) AS churn
FROM movements
WHERE period_month <= date_trunc('month', (make_date(cohort_year,1,1) + interval '12 months'))
GROUP BY cohort_year
ORDER BY cohort_year;Want to create your own tailored preparation guide using our deep research?
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