Monthly Recurring Revenue
The predictable revenue from all active subscriptions, normalised to one month.
SaaS and subscription metrics: MRR, ARR, churn, net revenue retention, LTV to CAC, payback, quick ratio and the Rule of 40, with formulas and DAX.
The predictable revenue from all active subscriptions, normalised to one month.
The yearly value of the recurring subscriptions active today.
How much ARR grew over the last twelve months, as a percentage.
How much MRR grew from last month, as a percentage.
The share of customers at the start of a period who cancelled during it.
The share of last month’s MRR lost to cancellations and downgrades, before counting any expansion.
MRR lost to churn and downgrades minus MRR gained from existing customers expanding, as a share of starting MRR.
The revenue a group of customers brings today compared with a year ago, counting expansion, downgrades and churn.
The share of last year’s revenue kept from the same customers, counting losses but not expansion.
The gross profit an average customer brings before they cancel.
How many times the profit from a customer covers what it cost to win them.
How many months of a new customer’s gross profit it takes to earn back what it cost to win them.
The average MRR each paying customer brings.
How much MRR the business gains for every unit it loses in a month.
Revenue growth rate plus profit margin, which together should reach 40%.
How much cash the company burns for each unit of net new ARR it adds.
How much new annual recurring revenue each unit of last quarter’s sales and marketing spend produced.
The share of trials (or free users) who become paying customers.
The share of customers at the start of a period who are still customers at the end.