Monthly Recurring Revenue (MRR)

The predictable revenue earned from active subscriptions or ongoing partner contracts, measured monthly.
Explanation:

Monthly Recurring Revenue (MRR) is the predictable, consistent revenue earned each month from active customer subscriptions or ongoing partner contracts. MRR provides a clear, reliable view of a company’s financial health and growth trajectory, especially in subscription-based and partner-influenced business models.

Key components of MRR often include:

  • New MRR: Revenue gained from newly acquired customers or partners during a given month.
  • Expansion MRR: Additional revenue from existing customers or partners through upsells, cross-sells, or plan upgrades.
  • Churned MRR: Revenue lost due to cancellations, downgrades, or lost partner relationships.
  • Net New MRR: The total change in MRR after accounting for new, expansion, and churned revenue, an essential metric for tracking monthly growth.
  • Partner-Influenced MRR: Revenue sourced, closed, or expanded through partner efforts, providing insights into ecosystem contributions to recurring revenue streams.

MRR is a critical metric for SaaS companies, service providers, and partner programs focused on recurring business models. It informs business planning, investor reporting, partner incentives, and operational decision-making by offering a consistent measure of month-over-month performance.

Example:
Partner-sourced MRR grew by 18% after the launch of their co-selling track.

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