Glossary · Revenue metrics
Annual recurring revenue (ARR)
Roughly MRR × 12 for subscription businesses — a yearly view of recurring revenue investors love for comparing scale.
Related: Monthly recurring revenue (MRR) · Churn rate · Series A
A bit more nuance▾
- Non-recurring services mixed into “ARR” confuses benchmarks.
- Emerging-market FX makes ARR reporting need a clear currency policy.
Go deeper▾
Discussion questions▾
- Is your ARR truly recurring or mostly project work?
- What ARR milestone would change how investors bucket you?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.