MRR & ARR
Monthly Recurring Revenue (MRR) is the amount of predictable revenue that a company can expect to receive on a monthly basis. MRR is critical to understanding overall business profitability and cash flow for subscription companies, like uberall.
Annual Recurring Revenue (ARR) is the total amount of MRR that a customer generates during a 12-month period.
Formula: ARR = MRR x 12
MRR and/or ARR Growth
In uberall, we measure the MRR and/or ARR growth in a monthly, quarterly and yearly basis.
Formula: MRR Growth Month over Month (M-o-M) = (MRR in current month) / (MRR in last month) -1
Gross Profit
Gross Profit is the amount of revenues left after deducting the direct costs associated with the revenues, namely Cost of Revenue (CoR).Formula: Total Revenues - Total Cost of Revenues
Gross Margin (GM %)
Gross Margin is a measure, where Gross Profit is represented as % of the revenues. It shows the portion of each euros of revenue that the company retains as gross profit.
Formula: Gross Profit / Total Revenues
EBITDA
EBITDA stands for Earnings before Interest, Taxes, Depreciation and Amortisation, and it is a measure of a company's overall financial performance and profitability. EBITDA is an amount a company retains after deducting all the expenses like salaries, rent expenses, etc. from the revenues.Churn Rate
The churn rate measures company's loss in customers for a given period of time. It can be measured in terms of both MRR Churn and/or Customer Churn. In uberall, we often measure churn in trailing 12 months (TTM) basis.Formula: SUM (MRR Churned in the last 12 months) / Beginning MRR
Net Expansion Rate
Net Expansion Rate represents the additional recurring revenue generated from existing customers. It includes both expansion through add-ons, upsell and contractions.
Formula: Sum (Expansion MRR + Contraction MRR in the last 12 months) / Beginning MRR
Net Retention Rate
Net Retention Rate shows the recurring revenue retained from existing customers, including expansions, contraction and cancellations (churn).
Formula: Sum (Expansion MRR + Contraction MRR + Churned MRR in the last 12 months + Beginning MRR) / Beginning MRR