Glossary · Customer Satisfaction
Monthly Recurring Revenue
Predictable monthly subscription income. The heartbeat metric of every SaaS business.
MRR in Practice
The Four Movements of MRR
| Movement | What it captures |
|---|---|
| New MRR | Revenue from brand-new customers |
| Expansion MRR | Upsell and cross-sell on existing customers |
| Contraction MRR | Downgrades, seat reductions |
| Churn MRR | Revenue lost from departing customers |
Net New MRR = New + Expansion - Contraction - Churn
Why It Matters
A company growing 10% in MRR purely from new logos is in a very different position from one growing 10% from expansion. The first depends on unlimited acquisition efficiency; the second compounds.
Frequently Asked Questions
Into four components: New MRR (new customers), Expansion MRR (upsell and cross-sell on existing customers), Contraction MRR (downgrades), and Churn MRR (lost customers). The composition of MRR growth tells you more than the aggregate number.
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