Annual Recurring Revenue (ARR)
Catalog row in Vendor License Metrics · Cited
- Unit
- Currency per year
- Aliases
- ARR
- Definition
- Guidewire's own key metric: the annualised recurring value outlined in active customer contracts at the end of a reporting period. ARR includes term licences, subscription agreements, support contracts and hosting agreements, and excludes components not expected to recur, primarily perpetual licences and professional services.
- Counting rules
- Where invoicing amounts increase over the contract term, ARR reflects the annualised invoicing amount for the current reporting period. ARR is a vendor reporting measure, not a customer licence metric.
- Floors / minimums
- Not applicable.