Total predictable revenue a company generates annually from subscriptions.
How ARR (Annual Recurring Revenue) is used in sales
In a real sales workflow, total predictable revenue a company generates annually from subscriptions. More relevant to leadership resumes — "grew ARR from $X to $Y." This helps a hiring manager understand how the term connects to the work you performed.
Frequently asked questions
What's the difference between ARR and ACV?
ARR measures total recurring revenue across all customers company-wide; ACV measures the average value of a single contract. ACV is often used to evaluate deal size, while ARR reflects overall business scale.
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