MRR (Monthly Recurring Revenue) is the predictable total revenue generated by all active subscriptions in a single month.

How do you calculate MRR Growth?

Net MRR Growth = (New MRR + Expansion MRR) - (Churned MRR + Contraction MRR).

What is Expansion MRR?

Expansion MRR is additional revenue from existing customers who upgrade to higher tiers or add more seats/features.

Investors value recurring revenue highly because of its predictability and scalability, often applying a multiple to the ARR (Annualized MRR).

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