ARR (Annual Recurring Revenue): Measure for recurring revenue

February 14, 2024

ARR, or Annual Recurring Revenue, is a key metric in subscription-based business models that measures the annual value of recurring revenue from customer subscriptions or contracts. This metric provides companies and investors with a clear insight into financial stability and growth potential by highlighting predictable and sustainable revenue. Optimising ARR is critical for assessing business performance, planning growth strategies and attracting investment as it reflects long-term profitability and customer retention.