What is net MRR growth metric in RevenueStory?

Modified on: Tue, 31 Aug, 2021 at 10:11 AM

Net earnings or loss in monthly recurring revenue.
Explanation of metric

This is the net increase or decrease in monthly recurring revenue during the period after taking into account all the new, expansion, and churn MRR.

How it's measured


Net MRR Growth = (New MRR + Reactivations + Upgrades + Free-to-paid MRR + Resumed MRR)- (Cancellation MRR + Downgrades + Paused MRR)
Reading

Up: Good

Interpretation

Your Net MRR Growth considers new revenue, expansions, and contractions. There are three keys to ensure overall profitability - minimize churn, drive upgrades from existing customers, and add new paying customers. It shows you how fast your business is growing. If you have your Net MRR growing at anything over 10-15% month on month (your revenue doubles every 6 months), you should consider that your business is growing much effectively.

Click here to read about other metrics.

M
Monica is the author of this solution article.

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