What does MRR stand for?

Monthly recurring revenue

MRR is short for “monthly recurring revenue”. This is a gauge used by companies to determine the persistent income they anticipate to make each month. This is often through subscriptions.

Here’s an illustration: If a cloud service business has 250,000 yearly subscribers, and each subscriber pays $15 every month, the MRR of this business will be $3.75 million.

By knowing their MRR, a company can make predictions about their future earnings. It can also help them see any increases or decreases in their monthly income, and establish goals for increasing their profits.

Example for using ‘MRR’ in a conversation

Hey, have you heard of MRR?

Yeah, it stands for Monthly Recurring Revenue. It’s a term businesses use to talk about their recurring income.

Ah, got it! So, it’s like the money they expect to receive every month, right?

Exactly! It’s usually from things like subscriptions. For example, think of a streaming service with lots of monthly subscribers.