What does ARR mean in business?

Annual recurring revenue

In business, ARR stands for "annual recurring revenue." This metric measures the recurring income a business expects to receive each year - typically via subscriptions.

For example, a business with 12,000 annual subscribers, each of whom pays $50 for a subscription, has an ARR of $600,000. Tracking this metric allows businesses to forecast their future revenue, as well as establish ARR goals to meet or exceed for the next year.


We're projecting our highest ARR ever next year, given the record number of new subscriptions this year
So, raises for everyone?
An entrepreneur describing their path to $1,000,000 ARR
An entrepreneur describing their path to $1,000,000 ARR

Related Slang


Updated August 24, 2023

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