What is CMRR - Monthly metric in RevenueStory?

Modified on: Mon, 30 Aug, 2021 at 12:36 PM

Total projected Monthly Recurring Revenue earned from Subscriptions.
Explanation of metric
  • A table breaking down the Committed Monthly Recurring Revenue (CMRR) as a projection of your Monthly Recurring Revenue for the future period. It will take into account any scheduled Upgrades, Downgrades, or Cancellations in the future.
  • It helps you understand how the current MRR would evolve over the next 12 months based on changes scheduled

How it's measured

CMRR - Monthly = [(Total MRR at the beginning) + (New MRR) + (Expansion MRR) - (Contraction MRR)]


Note: If there are no scheduled changes for a Subscription in the future, the current MRR is considered as the CMRR.Expansion MRR is the amount of additional Revenue coming from your existing Subscriptions. Contraction MRR or Gross MRR Churn is the total reduction in MRR due to Downgrade, PAUSE, and Subscription Cancellation (or Churn) compared to the previous period.
Reading

Up: Good

Interpretation
  • It is the baseline value of a service. If a business does not have a minimum monthly fee or other commitments, use actual historic data to determine empirical CMRR.
  • CMRR gives a better picture of the financial standing of a SaaS company than the MRR because it factors in the anticipated Churn during the period.
  • CMRR should be used for forecasting revenues and evaluating financial standing.
  • Example: In a given period:
    MRR = $1M
    MRR for new Subscriptions = $350K
    MRR for downgrades and churned Subscriptions = $500K
    CMRR = $850K

Click here to know about other metrics.

M
Monica is the author of this solution article.

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