October 25, 2017 14:41
MRR is an acronym for Monthly Recurring Revenue and is a measure of the predictable Gross Revenue based on active subscriptions. The primary purpose of the MRR measure is to permit comparative reporting across dissimilar subscriptions. The table below displays the challenge with maintaining a clear sense of subscription performance. MRR normalizes the subscription contract revenue so growth rates, churn rates and additional critical measures can be used to accurately access subscription business performance.
How is MRR Calculated?
- The MRR calculation incorporates all recurring debits/charges and credits/refunds/chargebacks from active subscriptions.
- The following are not included in the MRR calculation:
- one-time charges (e.g., straight sale for $120)
- one-time credits
- usage-based billing amounts (e.g., $2 per GB usage)
The MRR Dashboard can help answer questions like:
- Is recurring revenue increasing or decreasing each month?
- How much recurring revenue can I expect every month?
- Am I hitting monthly recurring revenue objectives?
Data Elements & Measures
The following data elements and measures are shown on the Monthly Recurring Revenue dashboard. For comprehensive definitions of data elements and measures, please reference the Glossary of Measures.
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