Monthly Recurring Revenue
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A key metric for subscription-based businesses is MRR, or Monthly Recurring Revenue as it lets you track business performance on a monthly basis. The MRR dashboard is rather large, so we will break it down into smaller sections here.
The MRR movements chart shows how the revenue moves from month to month.
New business - revenue from new customers
Expansion - new revenue from existing customers
Reactivation - expired subscriptions that have been reactivated
Contraction - downgrades, i.e. fewer seats or increased discounts
Churn - canceled or expired subscriptions
It can be quite useful to understand how your revenue is distributed geographically and this section of the MRR dashboard provides some insight.
Cohorts are a powerful way of analyzing your subscription revenue. Net retention revenue, or increasing revenue from your installed customer based is what creates long-term growth for a subscription business.
