ARR (Annual Recurring Revenue)
The annualized value of all active recurring contracts at a point in time, usually MRR × 12. One-off setup, onboarding or consulting fees stay out, as do unsigned contracts. Investors read ARR as the size of the business, so pilots, expiring discounts and usage spikes counted as ARR are the first things a due diligence strips back out.
More terms from Metrics & KPIs
- CAC (Customer Acquisition Cost)
- LTV (Customer Lifetime Value)
- MRR (Monthly Recurring Revenue)
- ACV (Annual Contract Value)
- NRR (Net Revenue Retention)
- Churn Rate
- Conversion Rate
- CPL (Cost per Lead)
- ROI (Return on Investment)
- GRR (Gross Revenue Retention)
- Expansion Revenue
Growth without the headcount.
Knowing the vocabulary is the easy part. In a free 30-minute call we look at what it would look like running on your stack.
Book a Call