Annual Recurring Revenue — What It Is, Why It Matters and 3 Simple Tips for Increasing Yours

Opinions expressed by Entrepreneur contributors are their own.

In today’s business environment, companies often rely on subscriptions as a key driver of revenue. Whether in the form of consumer-facing subscription boxes or SaaS platforms, many companies have recognized the value of setting up systems that deliver consistent, recurring revenue from their customers. In fact, the subscription economy is expected to reach $1.5 trillion in 2025.

Of course, just like any other business, subscription-driven companies must be able to effectively track their revenue to identify growth opportunities and challenges — and one of the best ways to do that is by looking at their annual recurring revenue (ARR).

Related: 5 Essentials

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