Business Pitch Dictionary by pitch.dog
Recurring revenue & contract metrics · Core

Annual recurring revenue

Also called: ARR

ELI5

Normalised recurring contract revenue expected over a year under a stated method.

Used in conversation

“The draft mentions annual recurring revenue, but the scope and jurisdiction are still unclear.”

Pitch context

You will see “Annual recurring revenue” in go-to-market plans, sales forecasts, account reviews and commercial proposals when the discussion reaches recurring revenue & contract metrics.

Why it matters: It helps a reader interpret recurring revenue & contract metrics without confusing the measure, decision, role or evidence being discussed.

Connected terms

  • Monthly recurring revenueARR expresses recurring revenue on an annualised basis; MRR expresses it monthly. Company definitions must be stated.
  • Run rateARR annualises recurring revenue under a stated subscription definition; an annualised run rate may extrapolate any recent metric and is not necessarily recurring.
Sources & evidence · 2

Supporting source families. This entry is an editorial synthesis rather than a quotation from one canonical glossary.