In episode #286 of SaaS Metrics School, Ben Murray breaks down one of the most common — and costly — mistakes SaaS founders and CFOs make when building their Monthly Recurring Revenue (MRR) schedules: netting contraction and expansion. This seemingly small error can break your ability to calculate key SaaS metrics like Gross Revenue Retention (GRR) and Net Revenue Retention (NRR).
What You’ll Learn:
The essential structure of an accurate MRR waterfall schedule
Why separating expansion, contraction, and churn is crucial for calculating SaaS metrics
How to calculate GRR and NRR using distinct MRR layers
Why trailing 3- and 6-month annualized retention rates offer deeper insights
Pro tips on segmenting your MRR by product, ICP, or geography
Who This Is For:
SaaS founders, CFOs, FP&A leaders, and revenue ops teams looking to improve their SaaS financial reporting and ensure clean, actionable SaaS metrics that stand up to investor scrutiny.
Resources Mentioned:
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