Glossary
MRR (monthly recurring revenue)
The predictable revenue that arrives every month without a new sale.
Only genuinely recurring income counts. A one-off setup fee, a consulting project or a single large order is not MRR, however welcome the cash is.
Founders often inflate this by annualising a good month or by counting contracts that have been signed but not yet started. Both get discovered in diligence, and discovering an inflated number is worse for the raise than a smaller honest one.
Related terms
- ARR (annual recurring revenue) — Monthly recurring revenue multiplied by twelve.
- Churn — The share of customers, or of revenue, that leaves in a period.
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See where this number sits in the rubric
The GTM Score is published in full, check by check, so you can see exactly what each figure is worth before you go looking for it.
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