Recurring Revenue

Recurring revenue is the predictable amount of income a business can expect to continue receiving in the future.

This metric is mostly used in subscription businesses and is tightly connected to the company's retention rate.

Unlike one-off sales, recurring revenue is consistent, predictable, regular and can be counted on with a high degree of certainty.

Related terms:

  • Annual recurring revenue (ARR) represents the value of the recurring revenue normalized for a single calendar year.
  • Monthly recurring revenue (MRR) is an amount of revenue that a company can expect to receive on a monthly basis.

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