THE VALUE & PRICING BLOG

The latest stories, blog articles, and pricing news from the Ibbaka team

Steven Forth Steven Forth

Will Annual Predictable Revenue (APR) replace Annual Recurring Revenue (ARR)?

Historically, SaaS companies have used ARR or Annual Recurring Revenue as their key metric. As pricing models diversify and access, usage and outcomes are combined with subscriptions to build hybrid pricing models ARR becomes less relevant. At the same time, more volatility in churn numbers is undermining the utility of ARR as a predictor of future revenue. We need a new metric. Ibbaka proposes that this be APR for Annual Predicted Revenue.

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