Monthly Recurring Revenue (MRR)
Monthly Recurring Revenue (MRR) is the predictable total revenue generated by a business from all the active subscriptions in a particular month. It’s a crucial metric for businesses that operate on a subscription-based model.
Problem it addresses
Tracking and forecasting revenue can be complex for subscription-based businesses due to the varying lengths and values of customer contracts.
How it helps
MRR provides a clear, consistent measure of income that makes it easier for businesses to predict future revenue, understand growth trends, and make informed strategic decisions. It’s essential for evaluating the financial health and scalability of subscription models.