MRR normalises subscription revenue to a monthly figure — annual subscriptions are divided by 12. It represents predictable, recurring income excluding one-time fees.
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Net Revenue Retention (NRR) greater than 100% means:
NRR above 100% (also called negative churn) means expansion revenue from existing customers (upgrades, seat adds) exceeds lost revenue from churn and downgrades — a strong growth signal.
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What is 'expansion MRR'?
Expansion MRR is revenue growth from existing customers — upgrades to higher tiers, additional seats, or add-on product purchases. It represents organic growth without new customer acquisition cost.
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Gross Revenue Churn measures:
Gross Revenue Churn = (MRR lost to churn + contraction) / Beginning MRR. It measures revenue loss without netting out expansion — showing the raw impact of customer loss.
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ARR (Annual Recurring Revenue) is typically used when:
ARR is the annualised view of recurring revenue — MRR x 12 or direct sum of annual contracts. It is the primary metric for enterprise SaaS valuations and investor discussions.