Metrics
ARR (Annual Recurring Revenue)
Quick definition
Annualized value of your subscription revenue at a point in time.
ARR is the normalized annual value of your active recurring contracts as of a measurement date. It excludes one-time fees, usage overages (unless contractually guaranteed), and services revenue. ARR is the north-star top-line metric most SaaS investors use.
Related metrics terms
MRR (Monthly Recurring Revenue)
Monthly equivalent of ARR, useful for month-over-month tracking.
Net Revenue Retention (NRR)
Revenue from your existing customer base 12 months later, including expansion and churn.
Gross Revenue Retention (GRR)
NRR without upsell — what you keep before expansion.
CAC (Customer Acquisition Cost)
Fully-loaded cost to acquire one new customer.
See this in action
Insights and tools where ARR (Annual Recurring Revenue) shows up.
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