Monthly Recurring Revenue

Definition

The predictable, normalised monthly revenue generated from subscription-based customers, excluding one-time fees, usage overages, and variable charges. Monthly recurring revenue is the foundational operating metric for SaaS and subscription businesses, enabling consistent tracking of growth, expansion, and churn. Investors apply ARR multiples to MRR-based businesses, with premium multiples awarded for high net revenue retention, efficient growth, and strong gross margins.