Active Subscriptions

Monthly Recurring Revenue (MRR) is the predictable, normalized monthly revenue generated from all active subscriptions. MRR is calculated by summing the monthly-equivalent value of every active subscription — annual plans are divided by 12, weekly plans are multiplied by approximately 4.33, and monthly plans are counted at face value. MRR is the foundational financial metric for subscription app businesses because it provides a consistent, comparable measure of revenue trajectory regardless of billing cadence mix. MRR is typically broken down into component parts: New MRR (revenue from first-time subscribers), Expansion MRR (revenue from upgrades, upsells, or cross-sells), Contraction MRR (revenue lost from downgrades), Churned MRR (revenue lost from cancellations), and Reactivation MRR (revenue from previously churned subscribers who re-subscribe). Tracking these components separately reveals the underlying dynamics driving overall revenue growth or decline. A company with strong headline MRR growth but high churned MRR may be masking a retention problem with aggressive acquisition spending — an unsustainable pattern that component-level analysis makes visible.

Annual Recurring Revenue (ARR) is the total value of recurring subscription revenue normalized to a one-year period. For mobile subscription apps, ARR is calculated by multiplying Monthly Recurring Revenue (MRR) by 12, or by summing the annualized value of all active subscriptions. ARR is one of the most important metrics for subscription businesses because it provides a predictable baseline of revenue, making it essential for financial planning, investor reporting, and company valuation. Unlike total revenue, ARR excludes one-time purchases, refunds, and non-recurring fees, providing a cleaner view of the sustainable revenue engine. Growth-stage subscription apps track ARR trajectory closely, as consistent month-over-month ARR growth signals product-market fit and effective monetization strategy.

Subscription revenue refers to the income generated from a recurring payment model, where users pay a regular fee, often on a monthly or yearly basis, to access premium features, content, or services within the app.

The percentage of users who stop using your mobile app over a specific time period. Churn rate is the inverse of retention rate and serves as a critical health indicator for any app business. For subscription apps, tracking churn is essential since even small reductions in churn can significantly impact revenue and customer lifetime value (LTV). Churn rate, also known as attrition rate, measures the percentage of users who stop using your mobile app over a specific period. In the context of mobile applications, churn represents users who disengage from your app—whether they uninstall it completely, cancel their subscription, or simply stop opening and interacting with it.

In-app subscriptions are a payment model in which users are charged on a recurring basis in exchange for access to premium content, exclusive features, or services. They are frequently used by developers as a way to monetize their apps by providing users with ad-free experiences or exclusive content.