ARR (annual recurring revenue)
Also known as: Annual recurring revenue
Annual recurring revenue is the annualised value of a publisher's recurring subscription revenue, usually MRR multiplied by twelve.
It's a common way to size a subscription business.
Why it matters for publishers
ARR is the number buyers, boards and investors use to size a subscription business. Because it is simply annualised MRR, its usefulness depends entirely on the discipline behind the MRR calculation underneath it.
How publishers use it in practice
- Use ARR for planning and valuation, MRR for month-to-month management.
- Quote ARR on the current run rate, not on a forecast, and say which month it is based on.
- Strip out non-recurring items — events, sponsorships, one-off licences — however tempting.
- Pair ARR with churn: £500k ARR at 2% monthly churn is a very different business from £500k at 6%.
Frequently asked questions about arr (annual recurring revenue)
- Is ARR just MRR times 12?
- Yes, as a run rate. It is not a forecast of the next twelve months' revenue, because it ignores churn and growth.