ARR
Annual Recurring Revenue
Annual recurring revenue (ARR) refers to revenue, normalized on an annual basis, that a company expects to receive from its customers for providing them with products or services. Essentially, annual recurring revenue is a metric of predictable and recurring revenue generated by customers within a year. Annual recurring revenue (ARR) is an essential SaaS business metric that shows how much recurring revenue you can expect, based on yearly subscriptions. ARR is also the annualized version of monthly recurring revenue (MRR) representing revenue in the calendar year. [1] [2] [3] [4]
[1] Retrieved May 21, 2021, from https://www.priceintelligently.com/blog/arr
[2] Corporate Finance Institute. Retrieved May 21, 2021, from https://corporatefinanceinstitute.com/resources/knowledge/ecommerce-saas/annual-recurring-revenue-arr/
[3] Annual Recurring Revenue (ARR) KPI | Finance KPI. Retrieved May 21, 2021, from https://www.plecto.com/kpis/annual-recurring-revenue-arr/
[4] Petty, J.S., and Gruber, M. 2009. “In pursuit of the real deal”. Journal of Business Venturing. https://doi.org/10.1016/j.jbusvent.2009.07.002