How does MRR differ from revenue?

MRR (Monthly Recurring Revenue) is a measure of the monthly recurring income that a company receives from subscriptions or regular customer payments. It reflects a stable income that can be expected each month.

Revenue is a more general indicator that includes all the company's income over a certain period, including one-time sales, services, subscriptions, and other sources.

Differences:

• MRR only considers regular, recurring payments, which is important for SaaS and subscription businesses.
• Revenue includes all types of income, including irregular and one-time.

Example: if you have 100 subscribers, each paying $10 per month, MRR = $1000. If this month you sold licenses worth an additional $500, then the total revenue will be $1500, but MRR will remain $1000, as $500 is a one-time income.