FindThatSoftwareGlossary
ARR / MRR (Annual / Monthly Recurring Revenue)
The predictable subscription revenue a business earns each year or month.
MRR (Monthly Recurring Revenue) is the predictable subscription revenue a business earns each month; ARR (Annual Recurring Revenue) is the yearly equivalent. They are the core health metrics for subscription and SaaS businesses.
For a buyer, these terms matter mainly when reading vendor or investor material - they signal how the vendor thinks about and prices recurring revenue.
More software terms