Committed Monthly Recurring Revenue (CMRR)

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 CMMR. Contracts under longer term contracts have longer customer lifetimes and this makes such customers more valuable. CMMR is a common 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, and the difference between the two provide 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

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