Committed Monthly Recurring Revenue (CMRR) is a forward-looking financial metric that represents the total monthly recurring revenue a SaaS or subscription-based business can expect to receive based on existing customer contracts and commitments. Unlike traditional Monthly Recurring Revenue (MRR), which reflects current revenue, CMRR includes committed future revenue from signed contracts that haven’t yet started billing.
CMRR encompasses several revenue components: current active subscriptions, committed upgrades or expansions from existing customers, new customer contracts that are signed but not yet active, and renewal commitments for the upcoming period. It excludes uncertain revenue like potential upsells, month-to-month subscriptions that could cancel, or speculative new business.
This metric provides businesses with greater predictability for financial planning, cash flow forecasting, and investor reporting. CMRR is particularly valuable for companies with annual contracts, enterprise deals with implementation delays, or seasonal businesses where revenue recognition timing differs from contract signing dates.