Metrics & Performance
MRR
Monthly Recurring Revenue — the predictable monthly revenue from subscriptions. The foundational SaaS metric used to track growth momentum.
MRR (Monthly Recurring Revenue) is the backbone metric for subscription businesses. It captures the predictable, recurring component of revenue: monthly subscription fees from active customers. MRR breakdown: New MRR (from new customers), Expansion MRR (from upgrades/upsells), Churned MRR (from cancellations), and Contraction MRR (from downgrades). Net New MRR = New + Expansion - Churned - Contraction. Tracking MRR components reveals whether growth is healthy (new customer acquisition) or unsustainable (growth masking high churn). MRR × 12 = ARR. VCs typically prefer ARR for standardized comparison across companies, while internal teams track MRR for monthly momentum and leading indicators.