ARR (Annual Recurring Revenue)

Definition

The amount of predictable revenue a SaaS company makes yearly—the metric that determines whether you're 'growth' or 'dead.'

Example Usage

We're at $500K ARR, which is supposedly a milestone that unlocks Series A conversations, though nobody told the investors.

Origin

SaaS-specific metric; became central to B2B software company valuations in the 2010s.

Fun Fact

SaaS companies typically trade at 8-12x ARR in acquisitions, making ARR the most important number on your dashboard.

Source: SaaS and startup metrics terminology

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information rights

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