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Which Type Of Revenue Is Reported In The LTV Section, Gross or Net Revenue?

Learn whether revenue includes discounts, returns, and taxes—and how that aligns with your internal reporting.

Paula Paić avatar
Written by Paula Paić
Updated over 2 weeks ago

In the LTV (Lifetime Value) section of the Lebesgue app, gross revenue is used to provide a full picture of the total value generated by your customers. This approach helps you understand the complete impact of each customer cohort and their long-term contribution to your business.
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What does gross revenue include?

In this context, gross revenue means we take into account:

  • All line item prices from your store

  • Taxes

  • Shipping fees

  • Discounts applied at checkout

  • Tips (if collected at checkout)

This ensures that the revenue numbers shown in the LTV section match your Shopify Gross Sales, giving you a top-line view of how much your customer cohorts are contributing in total store revenue over time.
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Returns are not excluded

It's important to note that returns are not excluded from the LTV metrics. Since the focus of this section is on profitability analysis and long-term customer behavior, including returns gives a realistic view of cohort performance without artificially inflating numbers.
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If you're looking to evaluate LTV by profitability, the gross revenue view provides a solid foundation—but we recommend combining it with other metrics such as Blended CAC, Refund Rates, and Expected Payback Period in the Cohort Statistics table to get a fuller picture of how profitable different segments truly are.
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Why we use gross revenue for LTV

Gross revenue is used in the LTV section because:

  • It reflects the complete purchase behavior of your customers.

  • It ensures consistency across cohort comparisons.

  • It helps you evaluate real cohort impact, even if orders were partially refunded.

  • It offers more context for measuring long-term trends, regardless of individual return activity.
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Need help?

If you’re unsure how to interpret your LTV metrics or want help analyzing customer profitability:

  • Chat with Us: Use the chat icon in the app or on our website.
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  • Schedule a Call: Speak with our Customer Success team:
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We’re here to help you make the most of your LTV data.
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