Marketing & Acronyms

ARR (Annual Recurring Revenue)

Quick Definition

ARR is the annualized version of MRR, commonly used in B2B SaaS for valuation and reporting.

In context

ARR provides cleaner comparison across different billing cycles (monthly, annual, multi-year). Most SaaS valuations are expressed as multiples of ARR.

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Related terms

Share of Search

Share of Search is the percentage of total brand-name search volume in a category captured by your brand — a leading indicator of market share popularised by Les Binet and James Hankins (2020).

LTV (Lifetime Value)

LTV is the total revenue a customer generates over the lifetime of their relationship with your business.

B2C (Business-to-Consumer)

B2C refers to businesses selling directly to individual consumers.

ROI (Return on Investment)

ROI is profit generated relative to investment, typically expressed as a percentage.

SaaS (Software as a Service)

SaaS is software delivered through the cloud on a subscription basis rather than installed on local devices.

PPC (Pay-Per-Click)

PPC is an advertising model where advertisers pay each time their ad is clicked — Google Ads, Bing Ads, social ads.

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