Annual Recurring Revenue

Definitions

1. The normalized yearly value of recurring subscription revenue, often used as a headline growth metric for SaaS businesses. ARR excludes one-time services and non-recurring revenue in most definitions.

   In plain English: The amount of subscription revenue a company would make in a year at the current run rate.

   Example: "They crossed ten million in annual recurring revenue before raising the next round."

Related Terms

• ARR
• ARR
• Net Dollar Retention
• Dollar Retention
• Gross Merchandise Volume
• Gross Retention
• Monthly Recurring Revenue
• MRR
• Annual Contract Value
• ARR Growth Rate
• Net MRR
• Net New ARR
• Regression to the Mean
• Revenue Run Rate
• Rule of 40