Annual Recurring Revenue (ARR) Chart
The Annual Recurring Revenue (ARR) chart is an annualized estimation of your recurring revenue. To compute it, we simply multiply MRR by 12. Learn more about how MRR is measured here.
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How to use Active Subscriptions Movement in your business
ARR is a common benchmark for subscription companies, and as such is a good way to measure the scale of your business. To understand what’s driving your ARR, segment by key subscriber segments like Store or Product Duration.
For each period, we multiply its MRR by 12 to yield the ARR for that period. Learn more about how MRR is measured here.
|What counts as an active paid subscription for the ARR measurement?||Any paid, unexpired subscription is considered active. Learn more here.|
|Does ARR exclude subscriptions with auto-renewal disabled?||No, ARR includes normalized annual revenue from all active paid subscriptions – even if their auto-renew status is currently disabled.|
Because of this, if churning subscriptions are not replaced by new paid subscriptions, ARR will be higher than actual realized revenue over a given period.
|Are non-recurring subscriptions, consumable, or one-time purchases included in ARR?||No, since these purchases do not represent recurring revenue, they are not included in the ARR calculation.|
|Is ARR calculated before commission and taxes?||Yes, ARR is calculated using the gross price of your active subscriptions. Commission & taxes deducted by the stores would need to be additionally deducted from ARR to understand expected proceeds.|
Updated 28 days ago