Understanding Committed Monthly Recurring Revenue (CMRR)

CMRR is currently in beta and available for use with Recurly, the latest version of our Stripe integration, and custom data sources.

Committed Monthly Recurring Revenue (CMRR) is a projection of MRR into the future. It’s based on expected or scheduled changes to a subscription, for example, a future cancellation a customer has already communicated.

CMRR allows you to:

  • See changes in MRR before an invoice is generated or paid.
  • Preempt revenue loss by winning back customers who are scheduled to churn and try to win them back.
  • Determine whether you’re on track to achieve performance goals.

Here’s what we cover in this article:

Resources and further reading:

Blog Everything you need to know about CMRR

TL;DR

  • CMRR is a projection of MRR into the future based on subscription events.
  • CMRR differs from MRR in that it’s a leading indicator that helps you track progress toward future goals.
  • Subscription events are scheduled future changes to a subscription that affects the subscription’s calculated MRR. They become realized when an invoice is generated.
  • ChartMogul imports subscription events automatically from Stripe and Recurly. With custom data sources, add subscription events manually, using CSV, or via our Subscription Events API.

Comparing MRR and CMRR

While MRR and CMRR both help you measure and track monthly recurring revenue, they differ in the perspective they offer. For example, consider the views from a moving car. MRR is what you see through the rear window — it’s where you’ve been. CMRR, on the other hand, is what you see through the front window — it’s where you’re headed.

MRR is subscription revenue you’ve already billed and received. It’s a trailing indicator — a look back at how (or whether) you achieved your revenue goals. ChartMogul calculates MRR using invoices and invoice line items.

CMRR is the revenue you expect to receive in the future. It’s a leading indicator — a look forward that helps you track progress toward revenue goals. ChartMogul calculates CMRR using subscription events.

  MRR CMRR
Type of Indicator Trailing Leading
Use Measuring past performance Tracking progress toward future goals
Calculated from Invoices and invoice line items Subscription events

Subscription Events

A subscription event is any change to a subscription. In ChartMogul, there are three types of subscription events: immediate, scheduled, and retracted.

Immediate

Immediate subscription events are changes to a subscription (resulting from a billing activity, i.e., invoice) that take place presently.

Immediate subscription events happen when:

  • Canceled — a subscription ended.

Stripe supports Started and Updated events. These events happen when:

  • Started — a customer signs up, and their subscription begins immediately before an invoice is generated. This invoice will be generated at the start of the next billing cycle.
  • Updated — a customer’s subscription is upgraded or downgraded and the change is effective immediately before an invoice is generated. This invoice will be generated at the start of the next billing cycle.

Scheduled

Scheduled subscription events are changes to a subscription that are expected or scheduled to take place in the future. Scheduled events contribute to CMRR.

Scheduled subscription events are dated in the future and happen when:

  • Start (Scheduled) — a customer signs up, and their subscription begins on a future date.
  • Cancellation (Scheduled) — a customer cancels, and their subscription ends on a future date (e.g., at the end of the billing cycle).
  • Update (Scheduled) — a customer’s subscription is upgraded or downgraded, and this change is effective at a future date (e.g., at the start of the next billing cycle).

Retracted

A scheduled subscription event may become retracted when the expected or scheduled change to the subscription is subsequently canceled or withdrawn. Retracted events are dated in the past and no longer contribute to CMRR.

  • Start (Retracted) — a scheduled start to a new subscription is subsequently withdrawn.
  • Cancellation (Retracted) — a scheduled cancellation to a subscription is subsequently withdrawn.
  • Update (Retracted) — a scheduled update (e.g., upgrade or downgrade) to a subscription is subsequently withdrawn.

Subscription Event Lifecycle

In the normal course of business, scheduled subscription events eventually become MRR movements on the scheduled subscription event’s Effective Date. That is, a change to a subscription that is expected or scheduled to take place in the future becomes realized when an invoice is generated.

For example, on April 4, a customer communicates that they would like to add a new (or upgrade an existing) subscription at the start of their next billing cycle, May 15. The Update (Scheduled) event would have an effective date of May 15.

On May 15, when the next invoice is generated, ChartMogul would register the net increase in subscription MRR as   Expansion.

Adding subscription events

If you use Stripe or Recurly, ChartMogul imports subscription events automatically — no setup required. Learn more:

For custom data sources, there are three options for uploading subscription events:

  • Manually — Add subscription events directly to your data source.
  • CSV — Upload subscription events as CSV to your data source.
  • Subscription Events API — Import subscription events using our API.

Viewing CMRR in ChartMogul

Once your account has scheduled subscription events, you can track CMRR in the following locations in ChartMogul:

  • Committed MRR Forecast — track how scheduled subscription events will impact your MRR and ARR.
  • MRR Breakdown — this report includes a section for upcoming MRR movements. To add this report to your dashboard, go to Dashboard > Settings   icon > Add Report, select MRR breakdown, and click Add. Learn more about customizing the dashboard.
  • Customer profile — view scheduled subscription events for a specific customer in the MRR Movements table. Scheduled subscription events appear before immediate subscription events.
Was this article helpful?