MRR normalises subscription revenue to a monthly figure — annual subscriptions are divided by 12. It represents predictable, recurring income excluding one-time fees.
2 / 10
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.
3 / 10
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.
4 / 10
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.
5 / 10
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.
6 / 10
Reviewer: 'Looks like we're seeing a dip in MRR this quarter. The sales team is attributing it to new customer onboarding challenges. What does that term signify here?'
MRR (Monthly Recurring Revenue) is the cornerstone metric for SaaS businesses. It represents the predictable, recurring revenue expected to be received from subscribers each month, excluding one-off payments like setup fees or professional services. Understanding MRR is crucial for forecasting and assessing growth potential.
7 / 10
Sales Manager (to Support): 'Our Net Revenue Retention rate is currently 125%. What does that actually *mean* in terms of customer behavior?'
NRR (Net Revenue Retention) > 100% indicates that expansion revenue – upgrades, add-ons, and cross-sells from existing customers – significantly outweighs customer churn. It's a strong indicator of a healthy SaaS business actively retaining and growing its customer base; the opposite would be a negative NRR.
8 / 10
API Response (from Revenue Dashboard): '{"expansion_mrr": 35000, "churn_mrr": 10000}'
Expansion MRR specifically focuses on the growth in revenue generated from existing customers. It's calculated by subtracting churned MRR from the net increase in MRR caused by upgrades and add-ons – a key indicator of sustainable growth for SaaS companies.
9 / 10
Pull Request Description: 'Implementing this feature will improve customer engagement, leading to increased usage and therefore higher MRR. We're monitoring Gross Revenue Churn closely to ensure the impact is positive.'
Gross Revenue Churn measures the total revenue lost due to churned accounts. This is calculated as the difference between the MRR from customers who left and the MRR from new customers acquired during that period – a critical metric for understanding customer retention challenges.
10 / 10
Developer (during daily stand-up): 'I'm focusing on improving ARR projections by optimizing our sales funnel and reducing churn. We're tracking ARR closely to assess the effectiveness of these changes.'
ARR (Annual Recurring Revenue) provides a yearly view of subscription revenue. It's often used for high-level strategic planning and comparing performance across different periods, while MRR focuses on the shorter-term monthly trend.
Yes. Every exercise on CoderSlingo, including this one, is free to use with no account, sign-up, or paywall required.
How many questions are in this exercise?
This set contains 10 multiple-choice questions, each with a detailed explanation shown after you answer.
Do I need to create an account to track my progress?
No account is required. Your progress bar and score reset each time you reload the page, but you can retry the exercise as many times as you like.
Who is this SaaS Metrics exercise for?
This exercise is built for IT professionals and non-native English speakers who need to read, write, and discuss saas metrics topics confidently at work.
What happens if I answer a question incorrectly?
You will see the correct answer highlighted along with a detailed explanation of why it is correct -- so every wrong answer becomes a learning moment, not just a lost point.
Can I retry this exercise?
Yes -- click "Try again" on the results screen at any time to reset your score and go through all the questions again.
How long does this exercise take to complete?
Most learners finish all 10 questions in under 10 minutes, since each question is answered by clicking a single option.
Where can I find more SaaS Metrics exercises?
See the full SaaS Metrics exercises hub for more vocabulary drills on this topic.
Is this exercise mobile-friendly?
Yes -- the exercise works on any device with a modern browser, including phones and tablets, with no app download required.