Glossary
ARR (annual recurring revenue)
Monthly recurring revenue multiplied by twelve.
It is a run rate, not a forecast, and not what you actually collected over the last year. It says: if nothing changed at all, this is what a year looks like.
That distinction matters most when a company has just landed one large customer. Multiplying a single unusual month by twelve produces a headline number the business cannot yet stand behind.
Related terms
- MRR (monthly recurring revenue) — The predictable revenue that arrives every month without a new sale.
Read next
See where this number sits in the rubric
The GTM Score is published in full, check by check, so you can see exactly what each figure is worth before you go looking for it.
Questions: [email protected]