MRR Bridge (MRR Movement)

Definition

The decomposition of each month's MRR change into four flows: New, Expansion, Contraction, and Churned MRR.

Formula

Net New MRR = New + Expansion - Contraction - Churned

Worked Example

June:

New MRR          + $5,400   (120 new customers x avg $45)
Expansion MRR    + $4,000   (upgrades)
Contraction MRR  - $1,500   (downgrades)
Churned MRR      - $2,200   (cancellations)
---------------------------
Net New MRR      + $5,700
End MRR = $84,000 + $5,700 = $89,700

Interpretation & Pitfalls

Two companies with identical net growth can have opposite health: one churning heavily and selling hard, the other retaining and expanding. The bridge tells them apart.

In TupicFinance

Subscription lifecycle events generate the four bridge components automatically.