Startup Metrics

Monthly Recurring Revenue

Definition

What is Monthly Recurring Revenue?

Recurring subscription revenue normalised to one month.

Example in practice

Five hundred customers paying ₦20,000 monthly produce ₦10 million MRR.

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The rate at which a company spends cash, commonly measured monthly.

The estimated time before cash runs out at the current burn rate.

Recurring subscription revenue normalised to one year.

Money set aside rather than spent, often for emergencies or future goals.

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