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Metrics · GTM Glossary

Annual Recurring Revenue (ARR)

The total revenue a subscription-based company expects to earn annually from its customers. ARR is the key metric investors and leadership use to measure SaaS company growth.

Example

If a company has 100 customers each paying €1,000/month, ARR = €1,200,000.

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Annual Recurring Revenue (ARR) — GTM Glossary | GENZ4GTM