Business
Annual Recurring Revenue (ARR)
ARR is the annualised value of all active recurring contracts. ARR = MRR × 12 for monthly subscriptions. The headline number reported to investors, used for valuations + growth-rate calculations.
More detail
ARR is the SaaS valuation anchor — companies are typically valued at 5-15x ARR depending on growth rate and gross margin. Don't conflate ARR with revenue — ARR is forward-looking (what you'd collect over the next 12 months at current MRR), revenue is backward-looking (what you've actually collected).