Monthly recurring revenue (MRR) is a metric used by businesses that have a subscription-based revenue model. It refers to the predictable and regular monthly revenue generated from subscriptions to a service or product.
MRR includes only the recurring revenue that is expected to continue each month, excluding one-time payments, setup fees, or other non-recurring charges. For example, if a company charges $10 per month for a subscription service, and has 100 subscribers, its MRR would be $1,000 per month.
MRR is an important metric for subscription-based businesses, as it provides a predictable and stable revenue stream that can be used for planning and forecasting. By analyzing changes in MRR over time, businesses can gain insights into customer acquisition and retention, pricing strategies, and overall business performance.