# ARR (Annual Recurring Revenue)

The annualized value of a subscription business's [recurring revenue](https://searchspheresource.com/glossary/mrr).

For a monthly-billed product it is twelve times MRR. ARR multiples price growing, team-run software companies, while the founder-run SaaS a [searcher](https://searchspheresource.com/glossary/searcher) buys trades on profit instead, so translate any ARR-multiple ask back to [SDE](https://searchspheresource.com/glossary/sde) before comparing.

In numbers: A product with 900 customers paying $99 a month runs about $1.07M of ARR; at searcher size the price will still usually anchor to its SDE, not to an ARR multiple.

Source: https://searchspheresource.com/glossary/arr
Not dated: A definition is editorial: what a term means, why it matters, and an example. None of it reads a source that can go stale, so there is no date to take and a stamped one would be the build time wearing a costume.

Site index for machines: https://searchspheresource.com/llms.txt