Contraction recurring revenue (ARR or MRR) is the decrease in recurring revenue from customers who downgraded to a smaller contract. While not as bad as churn, contraction can be a sign that sales oversold a product, customers aren’t seeing sufficient value, or the end customer is facing economic difficulties.
Contraction = lost ARR from customers who did not churn
Growth Rates: Period over Period, Year over Year, CMGR
Settings: Segments, Date Range, Date Aggregation, Trailing Period, Revenue Type
