This ARR guide is written for CFOs, finance leaders, founders, CEOs, and investor-facing software operators who want to disclose Annual Recurring Revenue (ARR) clearly, credibly, and consistently. I’ve collected and personally reviewed hundreds of public tech company ARR definition and calculations. I identified what actually works versus what creates confusion for investors, analysts, and internal […]
ARR
How to Define and Calculate ARR
Defining and calculating ARR is a hot topic. I have been talking to a lot of SaaS founders and finance leaders about how to properly calculate annual recurring revenue. Not too easy with today’s pricing and business models. The shift in pricing models (usage, consumption, outcome-based) has made the lives of tech CFO’s more difficult. […]
AI ARR vs. SaaS ARR: How to Define and Calculate
How do leading SaaS companies define ARR? Especially as AI and usage-based pricing models reshape recurring revenue in SaaS? In this post, I break down how Verint, a CX automation leader, defines both Subscription ARR and AI ARR, and how they model these metrics internally for cash flow, investor reporting, and product strategy. I did […]
What is Monthly Recurring Revenue in SaaS?
Guide to Monthly Recurring Revenue (MRR) There is no shortage of terms and acronyms in SaaS, and monthly recurring revenue (MRR) is one of them. SaaS revenue terms can be quite confusing, especially around recurring revenue. Is it MRR, ARR, ARPA, revenue recognition or bookings? In this post, I’ll define monthly recurring revenue, its many […]
Achieving Profitability in SaaS
Achieving Profitability in SaaS Underneath the hood, SaaS economics can get a little tricky and nuanced. Based on the economic realities of your business, do you know how fast (or slow) you are achieving profitability in SaaS? How fast a SaaS company can reach gross margin profitability is based on key SaaS metrics such as […]