Contracted Monthly Recurring Revenue is the revenue received from customers each month based on a contract. This can include recurring revenue from software as a service (SaaS), as well as other forms of recurring revenue such as subscriptions, memberships, and usage-based fees.
Because the money earned from contracted monthly recurring revenue is guaranteed, it’s easier to manage profit margins. There is no need to worry about one-time sales that may or may not come in; the company knows exactly how much revenue will come in each month. That makes it easier to forecast future growth and predict cash flow down the line.
