SaaS & Subscriptions / Revenue Operations
Expansion and Contraction MRR
The month's increase (expansion) or decrease (contraction) in recurring revenue coming from customers you already had, separate from brand-new customers and from full cancellations.
The fork, why two teams get different numbers
The fight is over what counts as expansion.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: SaaS operating-metric convention (no single standards body) ยท FASB ASC 606 (for price-modification treatment)