What is Annual Recurring Revenue (ARR)?
ARR is a key metric for any subscription-based company, like a SaaS business. It represents the total amount of predictable, recurring revenue a company expects to make in a year. It’s calculated by taking the Monthly Recurring Revenue (MRR) and multiplying it by 12. ARR gives a great snapshot of a company's financial health and growth potential because it focuses on stable income, not one-time sales. In the partner world, tracking the ARR generated by partners is crucial. It shows which partners are bringing in the most consistent value, helping companies decide where to invest their resources.