# Annual Recurring Revenue

*Startups & Venture Capital — Finicade finance glossary*

ARR is contracted recurring subscription revenue expressed annually — the metric SaaS companies are valued on. Its integrity depends on what's included: one-off services, usage overages and unsigned pilots are not recurring, and counting them is the most common way ARR is inflated. Multiplying one strong month by twelve is a projection, not a measurement.

**Also known as:** ARR, MRR, monthly recurring revenue

**Related terms:** [Net Revenue Retention](https://finicade.com/glossary/net-revenue-retention), [Churn Rate](https://finicade.com/glossary/churn-rate), [Rule of 40](https://finicade.com/glossary/rule-of-40), [Deferred Revenue](https://finicade.com/glossary/deferred-revenue), [Unit Economics](https://finicade.com/glossary/unit-economics)

Source: https://finicade.com/glossary/annual-recurring-revenue