Bessemer MRR Growth Report
What is the Bessemer MRR Growth Report?
The Bessemer publications cover the key attributes of well-run and well-managed SaaS businesses. Key metrics such as Customer Acquisition Cost(CAC), Customer Lifetime Value (CLTV), MRR metrics are defined and discussed within the context of key operating ratios for subscription companies.
What is MRR Growth and why is is important?
MRR growth (monthly recurring revenue growth) is the key metric for many in the SaaS community, with an extensive following in the venture capital marketplace. If you’ve attended a VC conference or are actively engaged in raising money, you likely be asked many questions about your MRR growth.
In a Powerpoint deck, the MRR growth calculation looks quite neat and simple. In the real world, calculation of this metric can be extremely complicated. Such reports are typically produced in Excel because accounting and finance systems lack the ability to generate such a report. The calculations, formulas, and record keeping required to produce MRR growth reports become exponentially more complex as your customer base, product packaging, and operations grow.