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metrics

ARR (Annual Recurring Revenue)

Annualized recurring revenue, calculated as MRR × 12 for SaaS companies.

ARR (Annual Recurring Revenue) represents the annualized value of your recurring subscriptions. It's the primary metric used by investors to value SaaS companies and compare them regardless of billing frequency.

Formula

ARR = MRR × 12

Tips

  • ARR is preferred for B2B SaaS communications
  • Use ARR for fundraising and valuation discussions
  • Track Net ARR (including expansion and churn)

Related Terms

MRRNRRRECURRING REVENUEVALUATION

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