ARR

GlossaryAlso known as: Annual Recurring Revenue, Contracted ARR

Annual Recurring Revenue: normalized annualized recurring subscription revenue contracted from active customers. The primary enterprise metric for company valuation, growth trajectory, and health in SaaS. Excludes one-time setup fees or ad-hoc professional services. Sustained Net Revenue Retention (NRR > 100%) in ARR signals strong operational fundamentals.

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