sumwerk

Annual recurring revenue (ARR)

ARR is MRR times twelve, the yearly value of your recurring revenue at today's run rate.

ARR = MRR × 12

ARR is a run rate, not the revenue of the last twelve months and not a forecast. It answers: if nothing changed from today, what would a year bring?

Some companies count only contracts of a year or longer as ARR. If you report ARR to investors, say which definition you use.

How sumwerk does it

sumwerk shows ARR as MRR × 12 next to the MRR, in the dashboard, the API and the exports.

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