Annual Recurring Revenue (ARR)
A point-in-time operating metric that annualizes eligible active subscription, maintenance, or recurring contract value.
Operating metrics for recurring contract value, monthly and annual run rates, revenue per user, revenue-generating units, and quarterly growth.
Recurring-revenue and unit metrics describe the scale, composition, and movement of a customer revenue base. They are useful for subscriptions, maintenance contracts, memberships, usage-based services, and other models where customer relationships can generate repeated transactions.
Recurring Revenue is the broad concept. Monthly Recurring Revenue and Annual Recurring Revenue normalize eligible active customer value to monthly or annual run rates. They are management KPIs, not standardized substitutes for recognized revenue, deferred revenue, remaining contractual obligations, or cash collections.
ARPU and Revenue Generating Units connect revenue to the population generating it. Quarterly Revenue Growth measures recognized revenue change over comparable periods rather than a point-in-time recurring run rate.
Before comparing any metric, define the measurement date, eligible products, customer or unit denominator, currency method, contract treatment, usage estimation, and handling of new business, expansion, contraction, and churn. Similar labels can produce materially different numbers.
These pages provide general financial education, not accounting, valuation, business, or investment advice.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
A point-in-time operating metric that annualizes eligible active subscription, maintenance, or recurring contract value.
Average revenue per user divides eligible period revenue by a defined average user, customer, subscriber, or account population.
A point-in-time operating metric that normalizes eligible active subscription and recurring contract value to a monthly amount.
Quarterly revenue growth compares revenue with the prior quarter or the same quarter a year earlier and separates operating growth from timing and scope effects.
Revenue generated repeatedly from ongoing customer relationships, subscriptions, contracts, renewals, or usage, subject to retention and service delivery.
A revenue generating unit counts each active revenue-producing service, subscription, account, or other unit under a company's disclosed policy.