MRR (Monthly Recurring Revenue)
Monthly Recurring Revenue (MRR) is the predictable revenue a company expects to receive every month from subscription-based customers.
What is MRR?
MRR represents the consistent income a business anticipates from its subscription services each month. It is a key metric for tracking revenue stability and growth.
Why MRR Matters
Having a solid MRR stream provides a clear picture of your company's financial health and helps in forecasting future revenue. It also attracts investors by demonstrating a predictable income flow.
Examples of MRR
- Netflix's monthly subscription fees from users
- SaaS platforms charging customers on a monthly basis
Related Conceptsh2>
ARR (Annual Recurring Revenue): The total revenue expected from subscriptions annually.