What does "ARR" or "MRR" mean for a business?

Posted 
 by 
Kaladin
 in 
Finance

For a software company specifically?

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rob 3 weeks ago

ARR = annual recurring revenue MRR = monthly recurring revenue

Example: If your customers pay $100 per month, and you have 10 customers $100 10 customers = $1,000 MRR $100 10 customers * 12 months = $12,000 ARR

The "recurring revenue" part is where customers pay you every month/year for your product.

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