Skip to content

Contact

CMRR

What is CMRR and how is it used in SaaS and Subscription Businesses? CMRR can mean either Committed Monthly Recurring Revenue or Contracted Monthly Recurring Revenue.

Read More

Committed Monthly Recurring Revenue

What is the difference between “committed” and “contracted” MRR? Committed Monthly Recurring Revenue is the value of recurring portion of subscription revenue. 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. However,…

Read More

Contracted MMR

What is the difference between “committed” and “contracted” MRR? 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…

Read More

MRR Definition

What is monthly recurring revenue in a SaaS business? For C-level execs and for organizations that adopt Monthly Recurring Revenue as a core operating and board-level metric, Monthly Recurring Revenue is probably the most important SaaS metric of all. The general concept is that Monthly Recurring Revenue is a measure of the predictable and recurring revenue components…

Read More

MRR Cohort

What is a Cohort Report and why is it important to a SaaS business?   MRR is an acronym for Monthly Recurring Revenue, which is the contracted, committed, or predictable revenue stream. A cohort is a group with a common statistical characteristic. While a cohort could be a common price band, geography, or other dimension, in…

Read More

Bessemer MRR Growth

Bessemer MRR Growth Report Bessemer Venture Partners is an active investor in many high profile SaaS businesses. Bessemer has published a number of widely distributed and read papers on SaaS finance and SaaS metrics. “Bessemer 5 Cs of SaaS Finance,” “Top 10 Laws for Being “SaaS-y,” and “Bessemer’s Top 10 Laws of Cloud Computing and…

Read More

How to Calculate MRR

How to calculate Monthly Recurring Revenue (MRR) for a Term Subscription Business Monthly Recurring Revenue is neither an FASB nor a GAAP defined term, and therefore there are neither rules nor findings to help you define the calculations for the various MRR components needed to report on business momentum: Monthly Recurring Revenue from renewals Monthly…

Read More