ARR

Annual Recurring Revenue (ARR) is the metric that represents the value of the recurring revenue components of your term subscriptions normalized to a one-year period. It is the holy grail metric for SaaS companies because it indicates the momentum and health of the business.

ARR excludes one-time fees and professional service fees. It allows for accurate forecasting and valuation, making it the primary metric investors look at when evaluating B2B SaaS companies.