MRR / ARR (Monthly / Annual Recurring Revenue)

Intermediate 🚀 Startup / VC

Definition

Predictable revenue from subscriptions—the metric that makes VCs smile because it's actually measurable.

Example Usage

We hit $100K MRR this quarter, which puts us at $1.2M ARR with 10% MoM growth.

Origin

SaaS business model and metrics, standardized in the 2010s.

Fun Fact

SaaS companies obsess over MRR growth because it's the closest thing to a crystal ball they have.

Source: SaaS and subscription business terminology

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