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Business
Yearly Recurring Revenue
The total annual revenue a company expects from subscriptions or contracts that renew every year.
YRR (or ARR) is a key metric for subscription businesses. It is more valuable than one-off sales because it is predictable and usually has high margins once the customer is won.
It's the steady money you can count on every year from customers who keep coming back.
Real world: A SaaS company with 10,000 customers paying £120 per year has £1.2 million in yearly recurring revenue. Investors love this predictable number because it shows the business has sticky customers.
💡 Yearly recurring revenue is the holy grail for online and software businesses.