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What does it mean?

Monthly Recurring Revenue (MRR)

For recurring revenue companies, MRR provides a month-to-month look at how recurring revenue or subscription business is growing. Includes MRR gained by new accounts (net new), MRR gained from up-sells (net positive), MRR lost from down-sells (net negative), and MRR lost from cancellations (net loss). MRR may not be ideal for longer term subscription models since there will be natural fluctuation over shorter time periods, but it can be a better metric for recurring revenue companies that aren't ideal for long-term subscriptions. It's also great for short-term planning. See also: ARR.