CMRR is a forward-looking metric that takes into account the revenue that the company is expected to receive in the future.
Contracted Monthly Recurring Revenue (CMRR) is a measure of the total monthly recurring revenue that a SaaS (Software as a Service) company has contracted to receive from its customers. It is a forward-looking metric that takes into account the revenue that the company is expected to receive in the future, based on the terms of its current customer contracts.
To calculate CMRR for a SaaS company, you will need to know the following:
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Number of contracted customers: This is the total number of customers who have signed a contract to pay for the company's product or service on a recurring basis.
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Average contracted revenue per user (ARPU): This is the average amount of money that each contracted customer is expected to pay per month, based on the terms of their contract.
Once you have these numbers, you can use the following formula to calculate CMRR:
CMRR = Number of contracted customers * ARPU
For example, if a SaaS company has 50 contracted customers and an ARPU of $100, their CMRR would be:
CMRR = 50 * $100 = $5,000
This means that the company has contracted to receive $5,000 in recurring revenue each month from its customers.
It's important to note that CMRR is a forward-looking metric that reflects the revenue that the company is expected to receive in the future, based on its current customer contracts. Actual MRR may differ from CMRR due to changes in the number of paying customers and the ARPU.
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