I like to teach you to think, so let’s cover what you need to know, to understand the annual thing. Firstly, billings. Good shout. You got the point already There are a few concepts to understand: Bookings Billings Revenue And a few others… as you can see (it’s an example based on assumptions): If you don’t understand the differences, then …
68 Learnings on the Things Not to Do in Your SaaS Startup
In 2017, Anand Sanwal, CEO of CB Insights did a talk at SaaStr to share his learnings on scaling whilst bootstrapped to $10 million in ARR. Whilst you may know some of them, they’re great reminders to apply to yourself. First, we have the 68 bullet points for quick reading. If you want to read the transcript, that’s at the …
ARR Annual Recurring Revenue explained for SaaS startups
ARR, an acronym for Annual Recurring Revenue, is revenue a startup can anticipate in an annual period. It is the value of the recurring revenue of a startup’s term subscriptions which are normalized to a year. It is a common term used in the SaaS and subscription world. ARR meaning is also known as Annualized Run Rate since ARR is a close …
Monthly Recurring Revenue
Monthly Recurring Revenue (MRR) is revenue that a SaaS business can depend on receiving each and every single month. Founders and investors like the predictable nature of this revenue source and is probably the most important metrics of a subscription business. As Monthly Recurring Revenue is the same thing as MRR, you can read the detailed explanation of MRR in …
MRR Monthly Recurring Revenue explained for SaaS startups
MRR, an acronym for Monthly Recurring Revenue, is income a startup can reliably anticipate every 30 days (monthly period). MRR lets companies operate under a subscription model, as opposed to one based on one-off transactions. It is used by SaaS companies as a measure of your predictable revenue streams (You don’t include unpredictable revenue in it like one-off professional services). MRR enables you …