Why SaaS Metrics Break Without Proper MRR Layering

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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