Revenue Metrics

New MRR

Monthly recurring revenue added from customers who are entirely new to the product and were not customers in the prior period.

New MRR measures the revenue contribution of freshly acquired customers — those who were not on the platform in the previous period. It is the output of the entire top-of-funnel and sales motion: marketing attracts prospects, the product or sales team converts them, and the resulting first monthly charge is new MRR. New MRR is the most capital-intensive component of growth because acquiring each new customer requires CAC investment. The ratio of new MRR to total MRR growth reveals how dependent a business is on acquisition versus expansion — a business where most growth comes from new MRR must maintain constant acquisition investment; one that generates most growth from expansion MRR has a more capital-efficient engine. Healthy businesses typically see a blend of new and expansion MRR, reducing concentration risk in either source.