What Is ARR in SaaS?
Annual Recurring Revenue (ARR) is MRR multiplied by 12. It is commonly used for sales-driven SaaS companies with annual contracts. Investors and acquirers often use ARR multiples to value SaaS businesses.
Why it matters: this metric helps founders separate random variation from real business movement. Decisions improve when the metric is tracked in trend form, not one-off snapshots.
How to use it in practice: pair this metric with at least one upstream and one downstream signal. That way, you can explain why it changed and what action should come next.
In AI Co-Founder, this term appears in context with related indicators so you can move from definition to decision without switching tools.