IFO4
Loading...The annualised value of an organisation's recurring revenue commitments at a point in time, computed as the sum of contracted recurring revenue normalised to a twelve-month basis. ARR is the federation-preferred top-line metric for subscription businesses and is distinct from billings, GAAP revenue, and run-rate. The federation requires ARR to be reported with the inclusion rules disclosed and reconciled to the deferred revenue and contract asset balances quarterly under UFMS-001:3.2. Non-recurring or one-time amounts are excluded with documentation.
A SaaS metrics coinage of the 2000s; the term was crystallised by the early SaaS public companies and the venture capital diligence vocabulary.
Federation members publish ARR with inclusion rules disclosed and reconciled to deferred revenue. ARR growth and net new ARR are quarterly accreditation metrics under MEV-Annex:4.1. Inflation of ARR by inclusion of non-recurring amounts is a Tier-1 conduct violation.
@misc{ifo4_glossary_arr,
title = {{Annual Recurring Revenue}},
author = {{IFO4 Federation Editorial Board}},
howpublished = {{IFO4 Federation Glossary, slug \texttt{arr}}},
year = {2026},
url = {https://ifo4.org/glossary/arr},
note = {Category: Unit Economics; key: AnnualRecurringRevenue}
}Federation members and accredited practitioners may challenge any entry under TGS-002:1.7. Filed challenges are routed to the editorial board, triaged into the revision register, and resolved in writing on the public docket. The slug remains stable through any revision.