ARR or Annual Recurring Revenue, is calculated on a monthly basis using the invoice data from your accounting system. In Beta, ARR is tracked based on the aggregation of invoices, per customer, per month, multiplied by 12. This simplified methodology approximates ARR in the absence of subscription data.
ARR Subcomponents
ARR subcomponents track the changes in ARR that occur month over month and identify how revenue for your customer base is changing. Retained ARR tracks revenue that remains consistent month over month, multiplied by 12. New ARR tracks revenue from new customers, multiplied by 12. Expanded ARR tracks increases in revenue from existing customers, multiplied by 12. Contracted ARR tracks a reduction in revenue from existing customers, multiplied by 12. Churn ARR tracks revenue for customers that in the past purchased but did not purchase in the most recent month, multiplied by 12. Resurrection MRR tracks revenue for customers that had previously churned and recently re-purchased, multiplied by 12.
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