How is Net MRR Growth calculated?
Net MRR Growth Rate = (New MRR + Reactivation MRR + Upgrade MRR) - (Cancellation MRR + Downgrade MRR) * 100
How should a business interpret expansion MRR?
Your Net MRR Growth considers new revenue, expansions, and contractions (downgrades and cancellations). There are three keys to ensure overall profitability — minimize churn, drive upgrades from existing customers, and, add new paying customers. It shows you how fast your business is growing. For instance, a Net MRR growth of 15% month on month, translates to a 2x revenue growth every 6 months.