Recurring Revenue

Recurring revenue refers to a predictable and consistent income a company expects to receive during a set time period from it’s customers.

This metric is mostly used in the software as a service industry as it heavily utilizes the subscription based payment plan model.

Monthly and annual recurring revenue are prominent metrics used to track recurring revenue over different periods of time.

Monthly recurring revenue (MRR) is the amount of revenue a company is expected to receive on a monthly basis.

The monthly income from customers is an important metric to consider for subscription-based businesses.

Annual Recurring Revenue (ARR) is the revenue amount a company expects to receives annually.

Annual income is an important metrics to take into account in long term planning.