Revenue

Net New Revenue

The bottom line of your MRR movements — how much recurring revenue you actually added or lost this period.

Net new revenue is positive most months but dips below zero in February — the honest measure of momentum, since a down month means churn and contraction outran new and expansion.

What is it?

Net New Revenue is the bottom line of your MRR movements — the total change in recurring revenue over a period once every gain and loss is counted. New, expansion and reactivation push it up; contraction and churn pull it down. Positive means you grew this period; negative means you shrank.

It is the single number that answers 'did we add or lose revenue this month?' A healthy-looking total MRR chart can still hide a weak net-new figure when most of the growth is being eaten by churn — which is why net new revenue, not gross adds, is the honest measure of momentum.

How to calculate?

Add new, expansion and reactivation MRR, then subtract contraction and churn MRR. In the running example, $4,000 new plus $3,000 expansion, less $800 contraction and $1,200 churn, nets to $5,000 of net new revenue for the month.

Because it nets gains against losses, net new revenue can swing negative in a bad month even while total MRR is still large. Read it as a rate of change — the slope of your MRR line — rather than a level.