MRR / ARR
Monthly and annual recurring revenue, the base of any subscription SaaS.
Definition
MRR (Monthly Recurring Revenue) is recurring revenue normalised to the month; ARR (Annual Recurring Revenue) is its annual projection. They exclude one-off revenue and serve as the foundation for calculating churn, NRR and customer lifetime value.
Why it matters
MRR and ARR provide a common language between finance, Customer Success and sales. An Account Manager often thinks in ARR per account to decide where to invest their time.
How Phano helps you
Phano ties its diagnoses to each account's revenue so that prioritisation follows the value actually exposed.
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Frequently asked questions
What is MRR / ARR?
MRR (Monthly Recurring Revenue) is recurring revenue normalised to the month; ARR (Annual Recurring Revenue) is its annual projection. They exclude one-off revenue and serve as the foundation for calculating churn, NRR and customer lifetime value.
Why does MRR / ARR matter?
MRR and ARR provide a common language between finance, Customer Success and sales. An Account Manager often thinks in ARR per account to decide where to invest their time.
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