Finance & AccountingFree tool
Monthly Investor Update Financials Template
The numbers your investors expect, built from your monthly close, with a note defining each metric and a one-line reason for every big move.
Free to start · Opens in your River workspace, ready to edit and share
How to report metrics in an investor update
The financials in an investor update are a short table of the five to eight metrics you run the company on, such as revenue, retention, burn and runway. Each metric shows this month, last month and the same month last year, with one sentence on why it moved. A good table comes with a definitions note that says exactly what each number counts, so investors can trust that when a number moves, the business moved.
One habit matters most: define each metric before you calculate it, then keep the definition fixed. A number that grows because its definition grew does more damage than a bad month.
Choose the metrics you run the company on
Pick five to eight numbers and report the same ones every month. Most companies need revenue, customers, gross margin, net burn, cash and runway. Add the one or two your model depends on, such as retention for subscriptions or take rate for a marketplace.
Report what you actually manage by. In the US, the SEC tells public companies that the metrics they disclose should not deviate materially from metrics used to manage operations or make strategic decisions1. That is a good filter for a private update too.
The metrics most updates carry
| Metric | What it tells investors | Where it goes wrong |
|---|---|---|
| ARR or MRR | Recurring revenue at this month's run rate | Usage or monthly plans counted one month but not the next |
| Revenue | What you earned this month | Confused with ARR, which is a run rate |
| Customers | How many accounts pay you | Free trials and unpaid pilots counted |
| Net revenue retention | Whether existing customers spend more a year later | No stated customer group or time window |
| Gross margin | The share of revenue left after delivery costs | Hosting or support costs left out of cost of revenue |
| Net burn | Cash used in the month | New investment or loan draws netted against spending |
| Runway | Months until the cash runs out | Based on one month's burn, not a recent average |
Payback and lifetime value need customer cohorts and definitions of their own. Work them out in a unit economics model before they go in an update.
Write each definition before the number
For each key metric a public company reports, the SEC's 2020 guidance generally expects a clear definition of the metric and how it is calculated1. The company should also explain why the metric is useful and how management uses it. Private companies are not bound by this, but it lists what any careful reader needs.
Give each metric one row in a short note: its name, the formula in plain words and the source. Then say what's in, what's out and why, and when the definition last changed. Exclusions do most of the work, because that is where counts quietly drift.
Metric: Paying customers
Formula: Accounts with an active paid subscription on the last day of the month
Source: Billing system, month-end subscription export
Includes: Annual and monthly plans, and accounts up to 60 days overdue
Excludes: Free trials, unpaid pilots, design partners and accounts on notice to cancel
Last changed: March 2026, when accounts on notice moved to excluded
- Exclusions in writing. Trials and unpaid pilots are the easiest way for a count to creep up.
- A date on the change. Readers can see which months were counted the old way.
Say which version of a metric you mean
Several common metrics have more than one defensible version, and public companies don't agree on them either. Datadog's annual report says its ARR includes customers' additional usage and monthly subscriptions2, and it measures net retention by comparing ARR from the same customers a year apart. Snowflake measures net retention differently: it divides one customer group's product revenue in the latest year by that group's revenue the year before3.
Neither is wrong, and both say exactly what they count. Pick one version and name it in your note. If another reading gives a very different number, show it once too.
February's billing records, three ways to count ARR
| Version | What it counts | ARR |
|---|---|---|
| Contracted only | Annual contracts, minus customers who have given notice | $9.0M |
| Plus monthly plans | Adds month-to-month subscriptions | $10.3M |
| Plus usage | Adds usage billed above contract minimums | $11.0M |
Made-up figures. The highest version is 22% above the lowest, from the same records.
Build the sheet from the closed month
Work from a closed month, after the books are reconciled, rather than a live dashboard that will change next week. The month-end close checklist covers the steps.
If you closed a priced round, check your investors' rights agreement for reporting deadlines. The National Venture Capital Association's model agreement gives major investors quarterly statements within 45 days, with an optional clause for monthly statements within 30 days4.
Give every metric three columns (this month, last month and the same month last year) and show both changes. The monthly change shows momentum, and the yearly one cancels out seasonal swings such as a quiet December.
Then write one sentence for each material move. Name the cause, not the direction: a large customer left, prices rose, a quarter's hosting bill landed in one month. If you don't know yet, say when you will. Put the biggest moves first.
Restate when a definition changes
When a public company changes how a metric is calculated, the SEC asks it to consider disclosing the differences, the reasons and the effect on amounts previously reported1. Depending on how significant the change is, it should also consider recasting earlier periods. Hold your update to that standard: say what changed and why, restate the earlier months, and show the old series once.
Definition change: From February, ARR includes usage above contract minimums, since most customers now pay for it every month.
January, restated: $10.62M on the new basis. Last month we reported $9.94M.
February: $11.00M, up 3.6% on restated January (old basis: $10.30M, also up 3.6%).
- The trap it avoids. Against January's reported $9.94M, February's $11.00M would look like 11% growth, three times the real rate.
- Both series, once. Readers can check the old basis once, then follow the new one.
Treat adjusted figures with the same care. SEC staff warn that an adjusted profit measure can mislead if it leaves out normal, recurring, cash operating expenses5. They count a cost as recurring if it comes back, even at irregular intervals. If you show an adjusted burn or EBITDA, put the unadjusted number beside it.
Tie cash, burn and runway to the bank
Take cash from the bank statement and make sure it matches the balance sheet. Net burn is the cash you used in the month, leaving out new investment and loans. Work out runway as cash divided by average net burn over the last three months, so one quiet month doesn't flatter it.
Then show how efficiently that cash buys growth. David Sacks, a co-founder of the venture firm Craft Ventures, proposed the burn multiple6: net burn divided by net new ARR over the same period. His rule of thumb for venture-stage startups calls under 1x amazing and over 3x bad. To test runway against a slower quarter, use a cash runway scenario template.
When to bring in your accountant
Have your accountant review the definitions note before a fundraise, audit or data room, and whenever a metric depends on how revenue is recognized. This guide is not accounting or legal advice.
Before you send the numbers
- Every metric has a written definition, exclusions included
- Each line shows three periods and both changes
- Every material move has a cause, biggest first
- Any changed definition is disclosed and earlier months restated
- Cash matches the bank, and runway uses a three-month average
- Adjusted figures sit beside the unadjusted ones
For the email around these numbers, start from the monthly investor update template. Or paste your close into the tool at the top of this page. It writes the definitions first, then builds the sheet and flags any number your records can't support.
How it works
Paste this month's financial statements and billing data, or attach the files, and add the numbers you sent investors last month. River writes the definitions note first: how each metric is calculated, where its inputs come from and what it leaves out. Then it builds the metrics sheet against those definitions, with three periods on every line, and explains each big move in a sentence.
If last month's figures don't match this month's records, River puts that at the top. When a definition changes, it restates the earlier months. When your data can't support a metric, it says what is missing instead of estimating.
Add this month's numbers
Paste or attach your financial statements and billing data, plus last month's update if you have it.
River defines each metric
It writes how each number is calculated and what it includes and excludes, before computing anything.
Get both files
A sheet with three periods per metric, plus a document with the definitions and a cause for each big move.
Edit, send, reuse
Change anything, ask River for the full update email, and reuse the note next month.
What you get
- A definitions note giving each metric's formula, data source, inclusions, exclusions and date last changed
- A metrics sheet showing this month, last month and the same month last year on every line
- A one-sentence cause for every material move, with the biggest moves listed first
- Earlier months restated whenever a definition changes, with the old series shown once beside the new
- Any gap between last month's reported figures and this month's records, flagged at the top
- A source for every figure, and a plain note wherever your records can't support a metric
Common questions
What metrics should an investor update include?
Five to eight numbers is typical: revenue or recurring revenue, paying customers, gross margin, net burn, cash and months of runway. Add whatever your business model turns on, like net revenue retention for a subscription company or take rate for a marketplace. Keep the set stable, and show each metric beside last month and the same month a year earlier.
Is ARR the same as revenue?
No. ARR is a run rate, usually this month's recurring revenue multiplied by 12, under whatever definition you choose. Revenue is what your accounting recognizes as earned in the period. Datadog's annual report says plainly that its ARR and MRR do not represent its revenue under GAAP2. If you report ARR, show revenue too, so readers can see how the two relate.
What if I've been counting a metric differently from month to month?
Pick the definition you'll use from now on, recalculate the earlier months on it, and tell investors once, with both versions side by side. It feels awkward, but a founder who volunteers a restatement looks in control of the numbers. Having an analyst find the inconsistency during due diligence looks far worse.
How do I build my investor update financials with River?
Paste or attach this month's financial statements and billing data in the box at the top of this page, add the numbers you sent last month, and pick who's reading. River writes the definitions note first, then the metrics sheet with three periods per line, and explains each big move. It all opens in your free River workspace, ready to edit.
What does River do if my records can't support a metric?
It says so. Every figure on the sheet is tied to the statements, billing records or bank balance you provided. If a metric you asked for needs data that isn't there, such as customer cohorts for net retention, River lists it as an open item. It says what it needs instead of estimating a number.
Can River choose the metrics for me?
Yes. If you don't list the metrics investors expect, River uses the standard set for the business model your records show and tells you it did. Who is reading sets the depth: a data room gets every alternative reading of a metric, while an informal seed update gets the short version. If this is your first update, every definition is marked as new.
Is the investor update financials tool free?
Yes, it is free to start. Your metrics sheet and definitions note open in a River workspace, where you can edit them, share them or ask River to change them. Paid plans add more AI use and access to the most advanced models.
Sources
U.S. Securities and Exchange Commission. “Commission Guidance on Management's Discussion and Analysis of Financial Condition and Results of Operations.” sec.gov (opens in a new tab)
Datadog. “Annual Report on Form 10-K for the Fiscal Year Ended December 31, 2025.” sec.gov (opens in a new tab)
Snowflake. “Annual Report on Form 10-K for the Fiscal Year Ended January 31, 2026.” sec.gov (opens in a new tab)
National Venture Capital Association. “NVCA Model Investors' Rights Agreement (Updated Oct 2025).” nvca.org (opens in a new tab)
U.S. Securities and Exchange Commission. “Non-GAAP Financial Measures.” sec.gov (opens in a new tab)
Craft Ventures. “The Burn Multiple.” craftventures.com (opens in a new tab)
Built by
Chandler Supple
Co-founder & CEO, River
Chandler has spent the last six years working in AI, building tools for millions of users and Fortune 100 companies. In 2025, he co-founded River to build a new kind of operating system for AI agents.