For a software company specifically?
Responses
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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