1 / 5
ARR is simply MRR multiplied by ___.
Annual Recurring Revenue annualises Monthly Recurring Revenue by multiplying by 12.
2 / 5
Revenue from brand-new customers this period is ___ MRR.
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New MRR is recurring revenue added by customers acquired in the period, a component of the MRR bridge.
3 / 5
Extra revenue from existing customers upgrading is ___ MRR.
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Expansion MRR captures upsells and seat growth within existing accounts, often the cheapest growth lever.
4 / 5
Revenue lost from downgrades (not full cancellations) is ___ MRR.
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Contraction MRR is the partial loss when customers downgrade; full cancellations are churned MRR.
5 / 5
A waterfall showing how starting MRR becomes ending MRR via these components is the MRR ___.
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The MRR bridge decomposes the change in MRR into new, expansion, contraction, and churn so stakeholders see the drivers.