AKA:
Monthly Revenue, Subscription Revenue
What does it mean:
Used in subscription-based businesses it’s your total revenue from your recurring payments. Recurring is the key part when talking about MRR. It does not include one time payments for example and you would not use MRR to talk about traditional e-commerce businesses.
The Formula:
Average Revenue Per User (ARPU) x Number of customers = MRR
Use it in a sentence:
To colleagues:
“Reducing our churn rate by 50% should have the biggest impact on improving our Monthly Recurring Revenue (MRR)”
To investors:
“Our MRR has been growing on average 20% each month for the last year.”
At a (work) party:
“Pretty sure we just spent to double our MRR to have this party. Thanks VCs! ”
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