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Monthly Recurring Revenue (MRR)

A vendor metric for the monthly recurring value of all active subscriptions.

MRR is ARR divided by 12, used in earlier-stage SaaS businesses to track growth at finer granularity. MRR is more sensitive to month-to-month changes (new logos, upgrades, churn) than ARR. Buyers don''t usually deal with MRR directly, but a vendor''s MRR growth rate and net new MRR per quarter are useful signals when evaluating vendor health for a multi-year deal.