What Is Subscription ARR? 3 Common Definitions Explained for SaaS Operators

In this episode of SaaS Metric School, Ben Murray dives deep into the often-confusing world of Subscription ARR (Annual Recurring Revenue). After analyzing over 160 public tech company filings, Ben shares the three most common ways companies define and calculate ARR—and why these differences matter for SaaS operators, investors, and finance teams. If you’ve ever struggled with benchmarking ARR or explaining it to stakeholders, this episode will give you clarity and context.

• The three standard definitions of Subscription ARR:

  1. Run-Rate MRR

  2. Annualized Contract Value

  3. Committed/Contracted ARR (CARR)

• The difference between ARR and CARR and why it matters

• Why even “pure subscription” businesses report ARR differently

• How public companies present ARR in earnings reports and filings

• The pitfalls of using AI tools (like ChatGPT) for ARR extraction

This episode is a must-listen if you are:
✅ A SaaS CFO or finance leader looking to align ARR reporting with industry norms
✅ A founder or CEO trying to understand what ARR numbers mean (and don’t mean)
✅ A SaaS investor or advisor comparing metrics across multiple portfolio companies
✅ Anyone responsible for forecasting, benchmarking, or reporting SaaS revenue metrics

• 📬 Join Ben’s SaaS Metrics Newsletter (85,000+ operators): https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page

• 📚 SaaS Community for templates, events, and training:  https://www.thesaasacademy.com/offers/dzSx6W32

• 🔁 Coming soon: A database of ARR disclosures from public tech companies

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