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.