How is total MRR metric in RevenueStory calculated?
Total MRR
Monthly recurring revenue earned from subscriptions.
Explanation of metric
A trend line depicts the total predictable Monthly Recurring Revenue earned from Customers.
A point-in-time indicator is also available for this metric. This KPI represents the Total MRR of subscriptions in the current period. It also compares the Total MRR for the previous period and percentage change across both periods.
How it's measured
Total MRR = Total MRR of Subscriptions during the period
Note: Included in TotalMRR
Revenue from Recurring Plans and Addons
Recurring Coupon discounts Included in TotalMRR (If Configured)
One time coupons
Metered charges
Non-recurring Addons (as per configuration) Excluded from TotalMRR
Setup fee
-- Credit adjustments
-- Any non-recurring ad-hoc charges
-- Amount charged towards tax
Reading
Up: Good
Interpretation
It depicts the health of a business, something an investor will look at before investing in the business. TotalMRR is the north star metric that should increase in order to maintain sustainable growth.
Example: In a given period, 200 subscriptions are on Plan A ($50/Month) and 50 subscriptions has a recurring Addon ($10/month)
MRR = (200 x 50) = $10,000
Recurring Addon = (50 x 10) = $500
Discount per Subscription = $10
Total Discounts = (200 x 10) = $2,000
Total Set up Fees = $700
TotalMRR = (10,000 + 500 - 2,000) = $8,500