The annualized value of a subscription business's recurring revenue at a point in time. Plain-language explainer with examples. Free to read.
The annualized value of a subscription business's recurring revenue at a point in time.
ARR = MRR × 12. It's the standard top-line metric for SaaS. Investors evaluate ARR alongside growth rate, net revenue retention, and gross margin.
One-time services, setup fees, and usage overage do not count toward ARR — only committed recurring contract value does.
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