What is CMRR and how is it used in SaaS and Subscription Businesses? CMRR can mean either Committed Monthly Recurring Revenue or Contracted Monthly Recurring Revenue.

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What¬†is the difference between “committed” and “contracted” MRR? Committed Monthly Recurring Revenue is the value of recurring portion of subscription revenue. For term-based subscription businesses, this is the portion of subscription revenue that is recognized each month. It excludes revenues that are not recurring even if such revenues are on a revenue recognition schedule. However,…

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What¬†is the difference between “committed” and “contracted” MRR? Contracted Monthly Recurring Revenue is the value of contracted recurring portion of subscription revenue. It is a close cousin of Committed Monthly Recurring Revenue. In some/most businesses, these metrics are identical. The nuance is that Contracted Monthly Recurring Revenue includes only contractually guaranteed revenues. For term-based subscription…

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What is monthly recurring revenue in a SaaS business? For C-level execs and for organizations that adopt Monthly Recurring Revenue as a core operating and board-level metric, Monthly Recurring Revenue is probably the most important SaaS metric of all. The general concept is that Monthly Recurring Revenue is a measure of the¬†predictable¬†and recurring revenue components…

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What is a Cohort Report and why is it important to a SaaS business?   MRR is an acronym for¬†Monthly Recurring Revenue, which is the contracted, committed, or predictable revenue stream. A cohort is a group with a common statistical characteristic. While a cohort could be a common price band, geography, or other dimension, in…

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Bessemer MRR Growth Report Bessemer Venture Partners is an active investor in many high profile SaaS businesses. Bessemer has published a number of widely distributed and read papers on SaaS finance and SaaS metrics. “Bessemer 5 Cs of SaaS Finance,” “Top 10 Laws for Being “SaaS-y,” and “Bessemer’s Top 10 Laws of Cloud Computing and…

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What is MRR? MRR is an acronym for Monthly Recurring Revenue, or very simply a measure of your predictable revenue stream. A primary purpose of MRR is to permit performance reporting across dissimilar subscriptions terms. The MRR reporting challenge is quickly illuminated in the following scenarios: Customer A subscribes to a one-year term with a…

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How to calculate Monthly Recurring Revenue (MRR) for a Term Subscription Business Monthly Recurring Revenue is neither an FASB nor a GAAP defined term, and therefore there are neither rules nor findings to help you define the calculations for the various MRR components needed to report on business momentum: Monthly Recurring Revenue from renewals Monthly…

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