When should you use/report CMRR in SaaS instead of MRR?

echojason@gmail.com'

JASON LEMKIN

Only once you are sophisticated enough to be able to report against “CMRR”.

CMRR is a great idea in that it’s a refinement of MRR. It an even more accurate go forward view of the business in general, and especially at the end of the month, than MRR.

But it’s a nuance, and it’s more work in most cases to show both CMRR and MRR. If you don’t have a strong finance person that’s worked in SaaS before, you’re asking too much.

Most non-SaaS finance people, and outsourced firms, will struggle even to get MRR right.

Focus there first. Get strong SaaS-style accounting and finances.

Once you’ve locked that in, adding cMRR as an additional metric can help. But not until your basic house is in order.

View original question on quora

Published on August 19, 2016
Share This