SAAS METRICS

The monthly recurring revenue (MRR) is the most critical metric SaaS businesses need to keep an eye on for survival. It helps you to improve constantly and depict a true potential of your business. MRR definiton, MRR calulations, MRR forumula, MRR tool…everything important related to monthly recurring revenue you should know is covered here.

If you are in a recurring billing business, you certainly know the situation. If you are not, you most likely want to migrate to a subscription system. So what are all these metrics? What does all that jargon mean? Here is an in-depth explanations for these SaaS / subscription / recurring business metrics. For now, let me give you a quick run down.

Billings is defined as revenue plus change in deferred revenue for a period.

What’s the rule of 40? Growth rate + profit should be greater than or equal to 40%.

Here is a straightforward glossary of 17 essential SaaS metrics explained in clear, simple language, and the formulae as easy to understand.