Contracted Monthly Recurring Revenue
Contracted Monthly Recurring Revenue is the value of contracted recurring portion of subscription revenue. It is a close cousin of Committed Monthly Recurring Revenue. In some/most businesses, these metrics are identical. The nuance is that Contracted Monthly Recurring Revenue includes only contractually guaranteed revenues .
For term-based subscription businesses, this is the portion of subscription revenue that is recognized each month. It excludes revenues that are not recurring even if such revenues are on a revenue recognition schedule. Variable fees are not typically included.
For month-to-month businesses (no term agreement), Contracted Monthly Recurring Revenue is the minimum contracted component of the service fee. For example, you pay $29.95 per month for a phone line. You pay $.02 per minute for each call. Contracted Monthly Recurring Revenue includes the $29.95 and excludes all fees for calls.
See also Monthly Recurring Revenue