What is Quarterly Recurring Revenue (QRR)?
What is quarterly recurring revenue? QRR is a metric that shows how much customers spend quarterly on certain subscriptions or services. On the other hand, this metric displays how much the business earns from these subscriptions. Calculating quarterly revenue is quite simple – you need to multiply the number of company customers by the average number of subscriptions per quarter.
Recurring income is the portion of an organization's income that is expected to continue into the future. One-time sales are unpredictable, but recurring income is calculable, stable, and predictable. This income comes in at regular intervals, so forecasts for it are, in principle, predictable with high accuracy. Thus, calculating the QRR is important for analysts to plan resources, analyze performance, etc.
Recurring income can come in various forms, depending on the industry. Examples vary for different companies that receive monthly payments. There are different options for clients who have entered into long-term contracts, or vice versa, who specialize in short-term subscriptions.