CARR and CMRR seem to be related, but they are distinctly different concepts. CMRR, pronounced “see-mer,” is the MRR that is under a contract term greater than one month. Put another way, all MRR under quarterly or annual contracts is referred to as CMMR. Contracts under longer-term contracts have longer customer lifetimes, making such customers more valuable. CMMR is a standard metric for SMM and B2C companies because they typically offer a mix of monthly, quarterly, and annual contracts, unlike Enterprise SaaS companies for which annual contracts are standard. CMMR and MRR are reported together, sometimes just with CMMR as a percentage of total MRR. The difference between the two provides insight into the stability of the consumer base. For example, a company with 80% CMRR to total MRR has a more stable consumer base than one with 20% because fewer customers can churn in any given month.
CARR and CMRR seem to be related, but they are distinctly different concepts. CMRR, pronounced “see-mer,” is the MRR that is under a contract term greater than one month. Put another way, all MRR under quarterly or annual contracts is referred to as CMMR. Contracts under longer-term contracts have longer customer lifetimes, making such customers more valuable. CMMR is a standard metric for SMM and B2C companies because they typically offer a mix of monthly, quarterly, and annual contracts, unlike Enterprise SaaS companies for which annual contracts are standard. CMMR and MRR are reported together, sometimes just with CMMR as a percentage of total MRR. The difference between the two provides insight into the stability of the consumer base. For example, a company with 80% CMRR to total MRR has a more stable consumer base than one with 20% because fewer customers can churn in any given month.
