GLOSSARY

The normalised recurring subscription revenue a business expects from active customers for one month.

MRR supports subscription forecasting, growth analysis, planning and reconciliation of customer-base movements, especially when reviewed as a bridge rather than a single total.

A company divides annual recurring subscriptions by 12, adds monthly plans and reconciles starting MRR plus new and expansion MRR minus contraction and churn to ending MRR.

MRR is a management metric, not necessarily revenue recognised under accounting standards or cash collected. Inconsistent treatment of discounts, services, usage and currencies makes comparisons unreliable.

MRR converts recurring contract values to a monthly basis and tracks movements such as new, expansion, contraction, reactivation and churned MRR. Organisations must document inclusions, currency treatment, timing and whether usage-based amounts qualify.