?
What counts toward MRR?
The strict definition: only recurring subscription revenue, normalized to a monthly amount. That means:
- Include: subscription fees from monthly and annual plans, recurring add-ons, seat-based pricing, recurring usage-based revenue that's predictable month-to-month.
- Exclude: one-time setup fees, professional services, refunds, taxes, discounts that aren't part of the recurring price.
If you sell mostly annual plans, your "ARR / 12" view of MRR is more meaningful than counting cash this month.
?
How is this different from booked revenue or cash?
MRR is a forward-looking contract view, normalized to one month. Booked revenue is a cash-or-invoice event. ARR is just MRR × 12. Cash is whatever actually hit your bank that month. Three different numbers; three different decisions.