What is rolling ARR?
Rolling ARR represents the total Annualized Recurring Revenue (ARR) at the end of a specific period. It focuses on the revenue contributions from individual deals that have been successfully closed by the sales team.
Why is it important to measure our rolling ARR?
Rolling ARR is perhaps the most important metric for any SaaS business. Rolling ARR provides a direct view of the development of revenue across different time periods. This metric is a must-have for any executive dashboard and general business report, as well as a great starting point for deep dive investigations of business performance trends. Measuring rolling ARR is essential for understanding the revenue impact of individual deals and the overall performance of the sales team. This information can be valuable for strategic decision-making, such as optimizing pricing strategies, understanding the potential of different market segments, and identifying upselling and cross-selling opportunities.
How is rolling ARR calculated?
To calculate rolling ARR, you need to sum up the Annualized Recurring Revenue from all closed won opportunities at the end of the specific period.