ARR per FTE

ARR per FTE is an efficiency metric that measures how much revenue each employee generates for the company. It is calculated by dividing the total Annual Recurring Revenue (ARR) by the number of Full-Time Equivalent (FTE) employees.

This metric is often used to benchmark a company's productivity against industry standards. A high ARR per FTE suggests a highly efficient organization that can generate significant revenue with a relatively small team, which is a key indicator of scalability and "default alive" status in the startup world.