ARR Definition

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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