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:
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The essential structure of an accurate MRR waterfall schedule
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Why separating expansion, contraction, and churn is crucial for calculating SaaS metrics
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How to calculate GRR and NRR using distinct MRR layers
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Why trailing 3- and 6-month annualized retention rates offer deeper insights
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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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Join Ben’s private SaaS metrics community: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
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Subscribe to Ben's newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page
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