MRR (Monthly Recurring Revenue)
Predictable subscription revenue in a given month, the monthly counterpart to ARR.
MRR is the total predictable revenue a subscription business earns in a month. Early-stage companies usually report MRR rather than ARR because monthly movements are visible and annualising a small number overstates stability.
The useful decomposition is new MRR, expansion MRR, contraction MRR and churned MRR. Net new MRR is the sum, and it is the number that shows whether growth comes from acquisition or from existing customers spending more.
A business with flat MRR and high churn can look identical to a stable one on a single month's figure. The decomposition is what tells the two apart, and experienced investors will ask for it.