Annually Recurring Revenue (ARR) stands for the amount of income a business makes during the whole year – 12 months – of operation. This metric allows you to see the current financial situation of your company. Whether you are reaching your goals or whether you need to review them. It even helps to analyze whether it is necessary to make price changes or launch new products or services. The caculation of this metric is simple ARR = MRR x 12.
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