What are MRR and ARR?

MRR (Monthly Recurring Revenue) and ARR (Annual Recurring Revenue) are key metrics for assessing subscription or SaaS business revenues.

• MRR is the sum of regular income that a company receives monthly from subscriptions or contracts. For example, if you have 10 clients, each paying 1000 rubles per month, MRR = 10 * 1000 = 10,000 rubles.

• ARR is the annual equivalent of MRR, i.e., MRR multiplied by 12. In our example, ARR = 10,000 * 12 = 120,000 rubles.

These metrics help forecast revenues, analyze growth, and make decisions on product development and marketing.