Annual Recurring Revenue (ARR) provides a yearly view of your predictable subscription revenue. It's particularly useful for enterprise SaaS and subscription businesses that deal with annual contracts. ARR is the go-to metric for investors and stakeholders when evaluating subscription businesses. It smooths out monthly fluctuations and provides a clearer picture of business health. When to use ARR vs MRR: - Use ARR when most customers are on annual plans - Use ARR for investor presentations and valuations - Use MRR for operational decisions and month-to-month tracking