Glossary / SaaS Product & Business Metrics

What is ARR (Annual Recurring Revenue)?

The annualized value of recurring subscription revenue. It is one of the most common topline health metrics in SaaS and a core investor benchmark.

Definition

The annualized value of recurring subscription revenue. It is one of the most common topline health metrics in SaaS and a core investor benchmark.

Why it matters

ARR growth is one of the clearest signals of SaaS business momentum and valuation potential.

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