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ARR (CAT-MIP-000000025)

Accepted • 2025-09-19 • by roop

Definition

ARR (Annual Recurring Revenue) is the total value of recurring revenue from subscriptions or service contracts normalized over a one-year period. It represents the predictable income that an MSP or SaaS business expects to receive annually from active customers. ARR is a key metric for evaluating long-term growth, customer retention, and business valuation.

Prompt Examples

  • Compare ARR by client tier and contract length.
  • Generate an ARR forecast based on current MRR and pipeline data.
  • How has ARR changed year-over-year for the healthcare vertical?
  • What is the current ARR across all managed security services?

Agent Execution

When a prompt refers to "ARR," the AI agent will:

  • Generate reports, dashboards, or financial summaries for strategic planning
  • Identify factors influencing ARR growth or decline, such as churn or expansion
  • Log ARR calculations and forecasting activities for auditing or executive review
  • Retrieve MRR and related subscription data to calculate ARR
  • Segment ARR by service, customer, or region if specified

Synonyms

  • Annual Revenue
  • Contracted Revenue (annualized)
  • Recurring Annual Revenue
  • Subscription ARR

Relationships

  • ARR isDerivedFrom MRR, multipliedBy 12
  • ARR isImpactedBy Renewals, Upgrades, or Churn
  • ARR isReportedIn KPIs or Growth Dashboards
  • ARR isTiedTo Subscriber, Contract, or Service Plan
  • ARR isTrackedIn Financial System or CRM

History

Date Author Reason
2025-08-19 roop Draft – initial term proposal
2025-09-19 roop Accepted – added to CAT-MIP registry
2025-11-25 jimmypuckett Correct ID as it conflicted with "Agent"