Annual Recurring Revenue (ARR) is a key metric that represents the total value of recurring revenue a business expects to generate over a 12-month period from active subscriptions or contracts. Commonly used in SaaS and subscription-based models, ARR includes new business, renewals, and upgrades, but typically excludes one-time fees or variable charges. It’s essential for long-term financial forecasting, investor reporting, and measuring sustainable business growth.
« Back to Glossary Index
« Back to Glossary Index