ARR
Definition
Annual Recurring Revenue -- the annualized value of all active subscription contracts, representing the predictable revenue a company expects to earn each year.
ARR is the north-star metric for SaaS businesses. It is calculated by summing the annual value of all active subscriptions, excluding one-time fees. ARR growth rate, net new ARR, and ARR per employee are key benchmarks used by investors and operators to assess business health and efficiency. Changes in ARR are driven by new business, expansion, contraction, and churn.
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FAQ
What does ARR mean?
ARR is the north-star metric for SaaS businesses. It is calculated by summing the annual value of all active subscriptions, excluding one-time fees. ARR growth rate, net new ARR, and ARR per employee are key benchmarks used by investors and operators to assess business health and efficiency. Changes in ARR are driven by new business, expansion, contraction, and churn.
What are the best ARR tools?
Top tools related to ARR: Tinybird, Hightouch, Mixpanel, Amplitude, Stripe.