Managed Services Revenue Growth
The year over year percentage change in managed services revenue, from new clients and from growth inside existing ones.
Formula
(This year's managed services revenue − Last year's) ÷ Last year's × 100
Why Track It
Growth shows whether sales and account management are adding recurring revenue faster than churn removes it. It sets the hiring plan and the case for any sales investment.
How It Is Measured
Compare managed services revenue for the trailing twelve months with the same period a year earlier. Split the change into new clients, expansion, price increases and lost revenue. Exclude acquisitions or report them separately so organic growth stays visible. Source: accounting revenue by line.
Constraints
Price increases can produce growth with no new clients. Twelve month figures lag, so read monthly net new MRR for the current picture.
Measurement Note
Excendio, citing Service Leadership, reports managed services growth back at 10% to 12% a year and total growth near 15% for top performers. Kaptius says about 42% of MSPs grow 6% to 20% a year. Acquisitions inflate the number if not separated.
Related KPIs
- Logo Churn RateThe percentage of managed services clients that ended their agreement during the year.
- Monthly Recurring Revenue (MRR)The total revenue billed each month under recurring agreements, such as managed services, security and cloud subscriptions.
- Win RateThe share of qualified sales opportunities that close as won in a period.
- Pipeline CoverageThe value of qualified open pipeline compared with the new revenue target for the same period.
Glossary and Answers
More in Sales and Growth
How efficiently the MSP turns opportunities into new recurring revenue. These numbers show whether the pipeline can carry the growth target and what each new client costs to win.
- CAC Payback PeriodOwner
- Client Lifetime Value to CAC RatioOwner
- Pipeline CoverageSales Manager
- Sales Cycle LengthSales Manager
- Win RateSales Manager