ARR
Annual recurring revenue
Example
We're projecting our highest ARR ever next year, given the record number of new subscriptions this year
So, raises for everyone?
Related Slang
MRR | Monthly recurring revenue |
KPI | Key performance indicator |
PBT | Profit before tax |
YTD | Year-to-date |
Q1 | First quarter |
EPS | Earnings per share |
APR | Annual percentage rate |
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.