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Acronyms Dictionary

MRR

Definition

Monthly Recurring Revenue. The total predictable revenue a company expects to receive every month.

Deep Dive

MRR is the lifeblood of subscription-based businesses. It calculates all predictable revenue coming in each month, providing a clear picture of the company's cash flow and growth trajectory. It excludes one-time payments or variable service fees.

Examples & Use Cases

  • 1A SaaS business tracking "Net New MRR" (new signups minus cancellations)
  • 2Using MRR to determine if a startup is ready to hire its next employee
  • 3Investors valuing a company based on its "MRR Growth Rate"

Related Terms

ARRSaaSChurn

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