Why it matters
ARR is the standard headline number investors and boards use to compare SaaS company scale and growth rate year over year.
Example
A company with $50,000 in MRR reports $600,000 in ARR to its board.
Keywords · Finance · Monetization
The annualized value of recurring revenue, typically calculated as monthly recurring revenue multiplied by twelve.
ARR is the standard headline number investors and boards use to compare SaaS company scale and growth rate year over year.
A company with $50,000 in MRR reports $600,000 in ARR to its board.