SaaSOptics Blog

MRR vs. ARR

[fa icon="calendar'] May 11, 2017 9:47:50 AM / by Clayton Whitfield posted in MRR, Investors, Financial Operations, ARR

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Answers to Common Questions about MRR and ARR

MRR is the most popular method of normalizing recurring revenues for subscription analytics. Normalized revenue provides a clearer picture of performance, especially when reported in categories relative to prior periods.

So, what's up with the less-talked-about cousin, ARR? Are there any real differences, other than the obvious? Why use ARR vs. MRR in your business? How will bankers and VCs react to ARR vs MRR?

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