{
  "rogueId": "sales.arr",
  "slug": "arr",
  "domain": "sales",
  "defaultLabel": "ARR",
  "description": "Annual Recurring Revenue — the value of all recurring subscription revenue normalized to a one-year run-rate as of the period close. The headline operating metric for a subscription business; every growth and efficiency ratio (NRR, GRR, magic number, CAC payback, Rule of 40) is calibrated against it. Excludes one-time fees, professional services, and non-contractual usage. Common pitfall: confusing ARR (contracted recurring) with revenue (recognized) or with CARR (contracted incl. not-yet-live) — the SMSB standard draws sharp lines between them, and boards expect the same discipline. The KpiVarianceTable widget surfaces forecast / actual / variance / status / future-forecast columns against the same field.",
  "fieldType": "currency",
  "unit": null,
  "maturity": "general",
  "suggestedForStages": [
    "preSeed",
    "seed",
    "seriesA",
    "seriesB",
    "seriesC",
    "public"
  ],
  "defaultOwningFunctions": [
    "Finance",
    "Sales"
  ],
  "stageRelevance": {
    "preSeed": "core",
    "seed": "core",
    "seriesA": "core",
    "seriesB": "core",
    "seriesC": "core",
    "public": "core"
  },
  "definitionSource": {
    "tier": "published",
    "sourceName": "SaaS Metrics Standards Board",
    "sourceUrl": "https://www.saasmetricsboard.com/annual-recurring-revenue",
    "sectionRef": "ARR",
    "publicationDate": "2023-01-01",
    "attributionNotice": "Metric definitions reference standards published by the SaaS Metrics Standards Board (saasmetricsboard.com). imboard is not affiliated with, endorsed by, or a member of SMSB."
  },
  "formula": "ARR = Sum of annualized value of all active recurring subscription contracts at period close. Per SMSB: includes only the recurring portion of contracts that are live (delivered / in production). Excludes one-time fees, professional services, and usage that is not contractually committed. For multi-year contracts, ARR is the contract value divided by the term in years.",
  "whyItMatters": "Headline operating number that every other SaaS metric calibrates against — growth rate, efficiency ratios (CAC ratio, magic number, Rule of 40), retention math (NRR, GRR), and valuation multiples all read off ARR. Boards use the period-over-period ARR delta as the first-pass health check for the business.",
  "interpretationGuidance": "Per KBCM/Sapphire SaaS Survey 2024 §Growth Rate, public-SaaS-comparable private companies in the $5–25M ARR band typically grow ARR 40–60% YoY, falling toward 20–30% by $100M+ ARR; well-below-band growth at any ARR scale is the first thing a board interrogates. Always read ARR alongside Net New ARR (sales.new_business + sales.expansion − sales.churn_arr − sales.downgrades) — flat ARR can mask churn offset by upsell.",
  "relatedKpiIds": [
    "sales.carr",
    "sales.new_business",
    "sales.expansion",
    "sales.churn_arr",
    "sales.downgrades",
    "sales.growth_rate_yoy",
    "sales.starting_arr",
    "customers.net_revenue_retention",
    "operations.rule_of_40"
  ]
}