Annual Recurring Revenue (ARR)

Annual Recurring Revenue (ARR) represents the normalized annual revenue from subscriptions, excluding one-time fees or variable charges. It provides a clear picture of a SaaS company's predictable revenue stream over a year, making it a valuable metric for long-term financial planning and valuation.

ARR helps businesses assess growth by tracking new subscriptions, renewals, upgrades, and downgrades. Investors and stakeholders often rely on ARR to evaluate the company's performance, scalability, and market position within the SaaS industry.