The Ultimate ARR Cheat Sheet.
Your guide to ARR calculations.
If you're a SaaS company, your ARR may be the single most important KPI calculation to get right. This is going to help you avoid common pitfalls, learn best practices and make the decisions that are right for your business. It's time to truly understand the delicate world of ARR calculations, what ARR is, how to calculate it and the key decisions to make when setting up this critical KPI.
Defining ARR Annualized Recurring Revenue - ARR - is a key performance indicator for subscription-based companies that projects annualized revenue based on consistent, recurring revenue streams. It answers one of the most important question these businesses have: “What is the predictable revenue we can expect from our current customer base over the next year?”
Clearly defining your ARR calculation and adapting it to your business reality and goals is key to extracting meaningful insights from your ARR metric. Accurate ARR isn’t only critical for reports and board meetings, it enables informed decision-making and the ability to drive sustainable, predictable growth in your subscription-based business.
Sightfull gives you full control over your ARR calculation and a diverse range of your most important business metrics.