Write the net revenue definition before calculating LTV

Two teams can use the phrase “net revenue” and calculate materially different values. The disagreement usually remains hidden until someone applies LTV to acquisition spend.

Name each deduction

Begin with the amount paid by the customer, then state how sales tax, app-store commission, payment processing, refunds and chargebacks are handled. Do not assume a proceeds export and a product analytics event represent the same moment or amount.

For multi-currency sales, record both the conversion source and conversion date. A monthly finance rate and a transaction-date rate can diverge without either calculation being careless.

Decide how refunds return to cohorts

A refund should normally reduce the revenue of the cohort that generated the original purchase, even if the refund occurs in a later reporting month. Otherwise acquisition cohorts with delayed refunds are flattered while the current calendar month absorbs the cost.

Restored purchases, grace periods and billing retries also need consistent treatment. These cases often explain why a transaction-event count does not match payer retention.

Put the definition on the output

A useful note is short enough to travel with the chart: “Net revenue equals customer receipts less VAT, store commission, refunds and chargebacks; GBP converted at monthly finance rates.” If data limitations force a proxy, name it.

The definition will not remove every judgement. It makes the judgement available for challenge, which is the condition for a credible LTV discussion.