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// Metrics

ARR

Annual Recurring Revenue, the run-rate of contracted subscription revenue at a point in time.

In depth

ARR is a snapshot: what would this book of business generate over the next 12 months if nothing changed? It excludes one-time revenue, professional services and usage overages. ARR is the number boards, VCs and public markets underwrite SaaS businesses on.

Related terms

ACV
Annual Contract Value, normalised annual revenue from a customer contract, excluding one-time fees.
NRR
Net Revenue Retention, % of recurring revenue retained from existing customers over 12 months, including expansion, minus churn and contraction.
Bookings
Signed contract value in a period. Not revenue; not cash. The leading indicator RevOps lives on.
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