Monthly Recurring Revenue - Definition
Written by Jason Gordon
Updated at October 22nd, 2020
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Academic Research on Monthly Recurring Revenue (MRR) Cloud computing business models, Strmmen-Bakhtiar, A., & Razavi, A. R. (2011). Cloud computing business models. InCloud Computing for Enterprise Architectures(pp. 43-60). Springer, London. Software As A Service: A Brief Study, Kaur, B. (2015). Software As A Service: A Brief Study.International Research Journal of Engineering and Technology,2, 2395-0056. Forecasting and the Role of Churn in Software-as-a-Service Business Models, Sukow, A. E., & Grant, R. (2013). Forecasting and the Role of Churn in Software-as-a-Service Business Models.iBusiness,5(01), 49. This article demonstrates a revenue forecasting model for Software-as-a-Service (SaaS) business models. The authors explain SaaS churn and demonstrate the use of critical variables in a predictive SaaS revenue model. The model allows a business to project future revenues based on historical and expected customer subscription behavior. SaaS Sales Compensation Models, Lazarov, B. (2012). SaaS Sales Compensation Models. Exploring Expansion Opportunities with Optimizely, Bauer, S. K. Exploring Expansion Opportunities with Optimizely. SaaS marketplaces: Visions from theory and experience from practice, Price, M., Tamm, G., & Stantchev, V. (2012). SaaS marketplaces: Visions from theory and experience from practice. Analytics are everything, Pranam, A. (2018). Analytics are everything. InProduct Management Essentials(pp. 55-64). Apress, Berkeley, CA. Valuation of a Saas Company: A Case Study of Salesforce. Com, Neubert, B. C. M. Valuation of a Saas Company: A Case Study of Salesforce. Com.INNOVATION MANAGEMENT, ENTREPRENEURSHIP AND SUSTAINABILITY 2018, 166. Applying Lean Analytics to Performance Metrics in M&A Earnouts, Areskoug, R. (2018). Applying Lean Analytics to Performance Metrics in M&A Earnouts. This study analyses the concept of earnout, and why they are applied to businesses. The purpose of this study is to contribute to practice and nascent literature by exploring and evaluating metrics for SaaS-companies that can be used in earnouts. The study applies Lean Anaslytics to suggest a framework for choosing what metrics to use, and discusses how to avoid sub-optimisation and metric manipulation. The study suggests that the most suitable earnout metric for M&A based on financial objectives is monthly recurring revenue (MRR). Sell the Company, Edge, C. (2018). Sell the Company. InBuild, Run, and Sell Your Apple Consulting Practice(pp. 321-331). Apress, Berkeley, CA. Cloud Service Business Scenarios and Market Analysis1, Chang, W. Y., Abu-Amara, H., & Sanford, J. F. (2011). Cloud Service Business Scenarios and Market Analysis 1. InTransforming Enterprise Cloud Services(pp. 43-86). Springer, Dordrecht. This paper presents the importance and impact of Cloud services on enterprises.