ARR (Annual Recurring Revenue)

A key financial metric used to measure predictable revenue in a subscription business.

What is ARR (Annual Recurring Revenue)?

ARR represents the total revenue a subscription business expects to generate annually from its recurring revenue streams.

ARR is a crucial metric for SaaS and subscription-based businesses.

Key components of ARR include:

  • New customer revenue from subscriptions
  • Expansion revenue from upgrades and upsells
  • Churned revenue from cancellations and downgrades

    • ARR helps investors and businesses evaluate long-term revenue stability.

    Related terms
    Revenue RecognitionEntitlement ManagementPayment Retry LogicJWT (JSON Web Token)Access Token Expiration
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