ARR (Annual Recurring Revenue)

What is ARR (Annual Recurring Revenue)?

Formula: Monthly Recurring Revenue × 12

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Predictable revenue generated by subscriptions annually. Key metric for SaaS businesses. Used by investors and executives. Companies like Salesforce and Adobe report ARR to investors.

What metrics indicate healthy ARR growth?

Key ARR health indicators include year-over-year growth rate, net revenue retention, customer acquisition cost, and churn rate. Successful SaaS companies typically maintain 15-30% annual growth while monitoring expansion revenue and customer lifetime value.

How do you increase ARR effectively?

Boost ARR through strategic pricing tiers, proactive customer success programs, and efficient sales processes. Focus on reducing churn, increasing customer expansion, and maintaining healthy subscription renewal rates. Implement upselling and cross-selling strategies.

What's the impact of ARR on company valuation?

ARR directly influences SaaS company valuations, with higher multiples for companies showing strong growth and retention. Investors analyze ARR quality, growth trajectory, and scalability when determining company value. Predictable revenue streams increase valuation.

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Founder, Forgematic

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CEO, A&J Education

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Owner, Social Slingshot

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""Mitch knows Google Ads really well and he is super responsive. He is good because he thinks about more than just driving traffic. He's on the case in terms of making sure landing pages are well optimised and everything's set up to obtain as many customers as possible.

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Practice Manager, DLG

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Founder, Fillout

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Co-Founder, Senja

Who is this for?

My services will turn on a tap of consistent flowing leads but it’s not for everyone. We’re likely a fit for each other if you’re:

A SaaS businesses that need more customers

If your SaaS company needs qualified users who are ready to become paying subscribers, I can optimize your Google Ads to deliver consistent leads.

Turning over of at least $20k/mth in revenue

I’ll use Google Ads to pour fuel on the fire. We need to know you have product market fit to be confident that you have a service that people are going to buy.

Have a strong retention rate

New users are great but we need to know that they will stay long enough to generate profit from their LTV.

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