Too Long; Didn't Read
Your monthly recurring revenue (MRR) moves every day because of all the underlying dynamics of customers joining, upgrading, canceling, or downgrading. MRR movements only have two components: MRR Added, MRR Lost — i.e. the revenue that your business lost in a particular period. New business makes up the largest component of MRR added for most businesses. As businesses grow, the proportion of revenue generated from new business decreases. This is the classic “land and expand” strategy many SaaS businesses employ.