MRR, ARR and the metrics worth watching monthly

A calculator on a printed report

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Recurring revenue is not recognised revenue. Confusing the two is why the sales report and the finance report never agree.

The seven core metrics

MRR, expansion revenue, lost revenue, renewal rate by contract count and by value, lifetime value, and cost to acquire a customer.

Read it by segment, never as an average

An average hides the small accounts leaving in droves while a few large contracts prop the total up.

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