SaaS Glossary

Basic defenitions of acronyms commonly used in product management and sales organizations, and Software-as-a-Service industry

Monthly Recurring Revenue

MRR stands for Monthly Recurring Revenue. A payment made by the customer to your company each month. It is a scrutinized metric when it comes to a subscription-based business, and investors often consider it as one of the most critical characteristics.

One of the advantages is that it offers a steady revenue stream that enables companies to forecast their income and cash flow. But it also requires having a clear understanding of your revenue trend by differentiating the new MRR from the existing ones as well as your churn rate month over month.

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