What does ARR stand for?

What does ARR stand for?

What does ARR stand for?

What does ARR stand for?

March 20, 2020

March 20, 2020

March 20, 2020

March 20, 2020

ARR stands for Annual Recurring Revenue, and is just like MRR, but uses one year as a normalization period. When only annual subscriptions are sold and ARR is as a main metric, there are several variations like with MRR.

However, when your main metric is MRR, we can use following formulas:
When estimating future ARR for a single month: MRR x 12
When reporting past ARR in annual report: Sum of MRRs from past 12 months

 

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