SAAS (cont’d) Common mistakes ● Don’t use Annual Recurring Revenue (ARR) and Annual Revenue Run-Rate interchangeably ○ Multiplying one month’s all-in revenue by 12 = Annual Run-Rate, not Annual Recurring Revenue ● Don’t include one-time or non-recurring revenue such as fees and professional services revenue in your monthly recurring revenue (MRR) calculation → only include recurring revenue 7
