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

CPC (Cost Per Click)

CPC is the amount you pay each time someone clicks your ad in pay-per-click advertising.

KPI (Key Performance Indicator)

A KPI is a quantifiable metric that reflects progress toward a strategic business goal.

SaaS (Software as a Service)

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

SEO vs SEM

SEO is unpaid (organic) search optimization; SEM technically includes both paid and organic but in common usage often refers to paid search specifically.

MRR (Monthly Recurring Revenue)

MRR is the predictable monthly revenue from subscription customers, used by SaaS and subscription businesses.

MQL (Marketing Qualified Lead)

An MQL is a lead that marketing has determined meets criteria suggesting they're worth passing to sales.

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