Monthly Recurring Revenue (MRR) is a metric used by many subscription-based businesses to forecast future growth as well as track momentum. Please be aware, it is a financial metric of business health, but it is not part of GAAP (Generally Accepted Accounting Principles), IFRS (International Financial Reporting Standards), or reported to a government entity.

MRR should not be used as a monthly reconciliation number for total monthly revenue or to estimate upcoming payouts for a variety of reasons:

  • MRR is a gross number. Net amounts, including deductions for various types of fees are only reported on the invoices reporting tab in the Uscreen dashboard.

  • MRR breaks all transaction amounts into a monthly rate. If you have varying terms besides monthly, MRR can include amounts based on annual/12, quarterly/12, semi-annual/12.

  • Because of this, Payout amounts will vary up and down from MRR, because the transaction itself is taking place on a specific date, which is then paid out all at once according to applicable payout terms

For more detailed information on MRR, please refer to the following article.

ProfitWell also has many resources available. What is MRR? is a comprehensive guide on how many subscription-based businesses utilize this metric. Uscreen has a direct integration for ProfitWell, which can be found in your settings dashboard.

Did this answer your question?