ARR Definition
What is ARR?
ARR definition: ARR is an acronym for Annual Recurring Revenue; it is a metric used by subscription based companies who have contract lengths of at least one year.
ARR is commonly used by B2B software companies who offer yearly or multiple-year subscription options, such as Software as a Service (SaaS) solutions.
ARR helps to:
- Simplify some accounting procedures
- Predict profit, loss, and turnover
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Popularity of the term ARR
Concept related to ARR
Additional resources about ARR
- What is ARR for a SaaS or Subscription Business
- How to calculate Annual Recurring Revenue
- Achieving $1M ARR. What does it mean?
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