OMB Cloud AES

ARR

Annual recurring revenue — MRR × 12, the standard metric VCs and boards use to gauge SaaS scale.

ARR (annual recurring revenue) is MRR multiplied by 12. It smooths out monthly noise and provides a clean number for valuations, fundraising, and yearly planning. A SaaS business with $50K MRR has $600K ARR.

Related: MRR, NRR (net revenue retention), GRR (gross revenue retention).